Read the full stored bill text
S. B. No. 2578 *SS26/R307PS* ~ OFFICIAL ~ G1/2
26/SS26/R307PS
PAGE 1
To: Municipalities;
Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Simmons (13th), McMahan,
Younger, Brumfield, England, McCaughn,
Mumford, Simmons (12th), Chassaniol,
Gillespie Isom, Pope
SENATE BILL NO. 2578
(As Passed the Senate)
AN ACT TO CREATE THE SMALL MUNICIPALITIES FEDERAL MATCH FUND 1
AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSE OF 2
PROVIDING MATCHING FUNDS TO SMALL COMMUNITIES THROUGHOUT 3
MISSISSIPPI WHICH RECEIVE DISCRETIONARY FEDERAL FUNDS; TO PROVIDE 4
THAT THE MONIES DISBURSED FROM THE FUND SHALL BE MATCHING FUNDS 5
USED TO DRAW DOWN FEDERAL FUNDS FOR CERTAIN MUNICIPALITIES; TO 6
REQUIRE THAT MONIES DISBURSED FROM THE FUND SHALL BE AT A SET 7
MATCH RATE OF TWENTY PERCENT (20%) IN ANY COMBINATION OF EITHER 8
STATE OR LOCAL FUNDS CONTRIBUTED BY THE SMALL MUNICIPALITY TO 9
EIGHTY PERCENT (80%) FEDERAL FUNDS RECEIVED; TO PROVIDE THAT 10
MONIES APPROPRIATED OUT OF THE FUND MAY BE USED TO REIMBURSE 11
ACTUAL OVERSIGHT COSTS INCURRED BY THE DEPARTMENT OF FINANCE AND 12
ADMINISTRATION UP TO A CERTAIN AMOUNT; TO REQUIRE THE DEPARTMENT 13
OF FINANCE AND ADMINISTRATION TO FILE A REPORT ON THE FUND TO 14
CERTAIN PUBLIC OFFICIALS; AND FOR RELATED PURPOSES. 15
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 16
SECTION 1. (1) As used in this section, "small 17
municipality" shall mean a municipality which has a population of 18
less than ten thousand (10,000) according to the latest federal 19
decennial census. 20
(2) There is created a special fund in the State Treasury to 21
be known as the "Small Municipalities Federal Match Fund" which 22
shall consist of monies from any source designated for deposit 23
into the fund. Unexpended amounts remaining in the fund at the 24
S. B. No. 2578 *SS26/R307PS* ~ OFFICIAL ~
26/SS26/R307PS
PAGE 2
end of a fiscal year shall not lapse into the State General Fund, 25
and any investment earnings or interest earned on amounts in the 26
fund shall be deposited to the credit of the fund. 27
(3) (a) Monies in the fund shall be disbursed by the 28
Department of Finance and Administration for the purpose of 29
providing funds to small municipalities throughout Mississippi 30
which receive discretionary federal funds. The monies disbursed 31
from the fund shall be matching funds to be used to draw down 32
federal funds for qualifying small municipalities under this fund. 33
The monies disbursed under this fund shall be at a set match rate 34
of twenty percent (20%) in any combination of either state funds 35
or local funds contributed by the small municipality to eighty 36
percent (80%) federal funds received. A municipality shall not 37
receive more than Two Hundred Thousand Dollars ($200,000.00) under 38
this section within a single fiscal year. 39
(b) In addition to the purposes in paragraph (a) of 40
this subsection, monies appropriated out of the fund may be used 41
to reimburse reasonable actual and necessary oversight costs 42
incurred by the Department of Finance and Administration in 43
administering this fund. Reimbursement of reasonable actual and 44
necessary costs and expenses for assistance shall not exceed one 45
and twenty-five one-hundredths percent (1.25%) of the monies 46
appropriated out of the fund. 47
(4) On or before January 5 of each year, the Department of 48
Finance and Administration shall file an accounting of and report 49
S. B. No. 2578 *SS26/R307PS* ~ OFFICIAL ~
26/SS26/R307PS
PAGE 3
ST: Small Municipalities Federal Match Fund;
create.
on funds disbursed from the Small Municipalities Federal Match 50
Fund, including an accounting of the actual costs and expenses 51
incurred by the department and the amount of funds disbursed. The 52
report shall be filed with the Speaker of the House, the 53
Lieutenant Governor, the Chairs of the Appropriations Committees 54
of the Senate and the House, the Chair of the Finance Committee of 55
the Senate, the Chair of the Ways and Means Committee of the House 56
and the Governor. 57
SECTION 2. This act shall take effect and be in force from 58
and after July 1, 2026. 59