Public Funds and Financing

Plain English Breakdown

The bill summary and text do not specify how the remaining $2 million of initial funding will be used, leaving this detail uncertain.

Hurricane Helene Disaster Recovery Fund

This bill creates a fund to provide financial assistance for counties affected by Hurricane Helene through grants and direct aid.

What This Bill Does

• Creates the Hurricane Helene disaster recovery fund within the state treasury, which includes grants, appropriations from the general assembly, federal funds, and other sources.
• Allocates $200 million to the fund: $100 million for county recovery grants and $100 million for direct assistance recovery grants.
• Provides specific amounts of money to certain counties based on their population size to help with infrastructure repairs and expenses related to flood damage from Hurricane Helene.
• Requires TEMA (Tennessee Emergency Management Agency) to develop an application process for households to receive direct assistance recovery grant funds, which must be used for repairing or replacing damaged property, replacing lost personal effects, and paying rent and utilities.
• Sets rules for the distribution of funds by counties, including a 30-day application period and a requirement that funds be disbursed within 15 days after review.

Who It Names or Affects

• Counties impacted by Hurricane Helene
• Households in affected areas seeking financial assistance

Terms To Know

TEMA

Tennessee Emergency Management Agency, which manages disaster recovery efforts.

Direct Assistance Recovery Grants

Grants given directly to households in affected areas for specific needs like repairing property damage or paying rent and utilities.

Limits and Unknowns

• The bill does not specify how the remaining $2 million of initial funding will be used.
• It is unclear if there are any provisions for future funding beyond the initial allocation.

Official Summary Text

This bill creates a fund within the state treasury to be known as the Hurricane Helene disaster recovery fund ("fund") to consist of grants, appropriations by the general a
ssembly, federal funds to the extent permitted by federal law and regulation, and any other moneys made available to the Tennessee emergency management agency (TEMA) for the purposes of such fund from any other source. TEMA must use the fund to pay count
y
recovery grants and direct assistance recovery grants to eligible counties to assist with disaster recovery efforts in those counties resulting from flooding caused by Hurricane Helene.

APPROPRIATIONS

This bill provides that it is the legislative inten
t that the fund consists of an initial appropriation of $2 million from the general fund, with $100 million to be allocated for county recovery grants and $100 million to be allocated for direct assistance recovery grants. Unless directed otherwise, any
g
rants, subsequent appropriations by the general assembly, federal funds to the extent permitted by federal law, and other moneys made available to TEMA for the purposes of the fund from any other source, including gifts, must be allocated equally between
c
ounty recovery grants and direct assistance recovery grants.

COUNTY RECOVERY GRANTS

Subject to the availability of funds, this bill requires TEMA to provide county recovery grants as follows to provide financial assistance to counties for infrastructure
engineering and general expenses directly related to flood damage resulting from Hurricane Helene:



$15 million to Johnson County;


$20 million to Carter County;


$10 million to Washington County;


$15 million to Unicoi County;


$17 million to Greene County;


$5 million to Sullivan County;


$15 million to Cocke County; and


$3 million to Hawkins County.

DIRECT ASSISTANCE RECOVERY GRANTS

Subject to the availability of funds, this bill requires TEMA to provide direct assistance recovery grants to counties
included in a declaration made on or after September 26, 2024, and prior to October 3, 2024, for a disaster certified by the federal emergency management agency. TEMA must consider appropriate factors, including population, property damage, and need, and

allocate grants to counties accordingly. Each county that receives direct assistance recovery grants must disburse funds from such grants to households on a first-come, first served basis after considering need and availability of funds.

Application Pro
cess

This bill requires TEMA to develop and provide to counties a standardized application form for households to apply for direct assistance recovery grant funds. The application must require a demonstration of need, according to the category of need s
pecified from the applicant.

Distribution

This bill requires the office of the county mayor or county executive to administer the application process and disbursement of funds to eligible households. Such office is authorized to hire temporary staff t
o assist with implementing this bill, and may use a percentage of direct assistance recovery grant funds received from TEMA to pay reasonable expenses for the administration and disbursement of grant funds and the wages of temporary staff. Counties recei
v
ing grant funds must set and publish the beginning and end dates of the application period, which must begin on the effective date of this bill, and end 30 days after that date. A county has 15 days to review applications, and funds must be awarded withi
n
15 days of the end of the review period and disbursed as expeditiously as possible. Only one application may be submitted per household.

Permissible Uses

This bill provides that direct assistance recovery grant funds must be used only to assist eligi
ble households with (i) repairing or replacing damaged real or personal property; (ii) replacing the loss of personal effects; and (iii) paying rent and utilities.

Recordkeeping

This bill requires the county to keep a record of disbursed direct assista
nce recovery grant funds for purposes of an audit by the comptroller of the treasury. The record must include each application, applicant's name and residential address, amount requested, amount received, and the category or categories of need specified.

The record must be kept for the period of time as required and determined by the comptroller of the treasury. The county must also publish on the county's website, an aggregated report that details the number of applications received, the number of appl
i
cations approved, the total amount of funds requested, the total amount of funds disbursed, and the total amount of funds expended on grant administration.

AUDIT BY COMPTROLLER

This bill provides that the fund and disbursements of county recovery grants
and direct assistance recovery grants are subject to examination and audit by the comptroller.

FALSE CLAIMS VIOLATION

If a person filing a claim or invoice for a grant or grant funds, including for reimbursement, knowingly makes a false, fictitious, or
fraudulent statement or representation, or knowingly submits false, fictitious, or fraudulent documentation or information to a county, TEMA, or the state treasurer, then this bill provides that such person is liable under the False Claims Act, which gen
e
rally authorizes a political subdivision of the state to bring a civil action to recover up to three times the amount of damages sustained and civil penalties between $2,500-$10,000 for each false claim.

ON APRIL 21, 2025, THE HOUSE ADOPTED AMENDMENTS #
1 AND 2 AND PASSED HOUSE BILL 1278, AS AMENDED.

AMENDMENT #1 revises various provisions of this bill concerning the Hurricane Helene disaster recovery fund.

AMENDMENT #2 rewrites this bill to authorize use of the Hurricane Helene interest payment fund,
created by Public Chapter 2 of the First Extraordinary Session of 2025, to pay local governments' loan charges. This amendment defines "loan charges" to mean charges, fees, and other costs associated with loan processing and servicing that are imposed b
y
a lender, including origination fees, application fees, appraisal fees, payment processing fees, and brokerage fees. The authorization provided by this amendment is in addition to the authorization under Public Chapter 2 of the First Extraordinary Sessi
o
n of 2025 to use the fund to pay local governments' interest costs for up to three years on money borrowed to pay eligible disaster recovery costs related to Hurricane Helene.

Current Bill Text

SENATE BILL 646
By Crowe

HOUSE BILL 1278
By Hill

HB1278
002396
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 9 and Title 58, relative
to providing financial assistance in counties
impacted by Hurricane Helene.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 9, Chapter 4, Part 2, is amended by
adding the following as a new section:
(a) There is created a fund within the state treasury to be known as the
Hurricane Helene disaster recovery fund. The fund consists of grants, appropriations by
the general assembly, federal funds, to the extent permitted by federal law and
regulation, and any other moneys made available to the Tennessee emergency
management agency for the purposes of such fund from any other source or sources.
(b) Moneys deposited in the fund must be invested for the benefit of the fund
pursuant to § 9-4-603.
(c) Moneys in the fund must not revert to the general fund, but must remain
available to be used exclusively for the purpose specified in this section.
(d) The Tennessee emergency management agency shall use the Hurricane
Helene disaster recovery fund to pay county recovery grants and direct assistance
recovery grants to eligible counties to assist with disaster recovery efforts in those
counties resulting from flooding caused by Hurricane Helene.
(e) It is the legislative intent that the Hurricane Helene disaster recovery fund
consists of an initial appropriation of two hundred million dollars ($200,000,000) from the
general fund, with one hundred million dollars ($100,000,000) to be allocated for county

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recovery grants and one hundred million dollars ($100,000,000) to be allocated for direct
assistance recovery grants. Unless directed otherwise, any grants, subsequent
appropriations by the general assembly, federal funds, to the extent permitted by federal
law and regulation, and other moneys made available to the Tennessee emergency
management agency for the purposes of the Hurricane Helene disaster recovery fund
from any other source or sources, including gifts, must be allocated equally between
county recovery grants and direct assistance recovery grants.
(f) Subject to the availability of funds, the Tennessee emergency management
agency shall provide county recovery grants as specified in this subsection (f) to provide
financial assistance to counties for infrastructure engineering and general expenses
directly related to flood damage resulting from Hurricane Helene:
(1) Fifteen million dollars ($15,000,000) to the county government of a
county having a population of not less than seventeen thousand nine hundred
forty (17,940) nor more than eighteen thousand (18,000), according to the 2020
federal census;
(2) Twenty million dollars ($20,000,000) to the county government of a
county having a population of not less than fifty-six thousand three hundred
(56,300) nor more than fifty-six thousand four hundred (56,400), according to the
2020 federal census;
(3) Ten million dollars ($10,000,000) to the county government of a
county having a population of not less than one hundred thirty-three thousand
(133,000) nor more than one hundred thirty-three thousand one hundred
(133,100), according to the 2020 federal census;
(4) Fifteen million dollars ($15,000,000) to the county government of a
county having a population of not less than seventeen thousand nine hundred

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(17,900) nor more seventeen thousand nine hundred thirty-five (17,935),
according to the 2020 federal census;
(5) Seventeen million dollars ($17,000,000) to the county government of
a county having a population of not less than seventy thousand one hundred
(70,100) nor more than seventy thousand two hundred (70,200), according to the
2020 federal census;
(6) Five million dollars ($5,000,000) to the county government of a county
having a population of not less than one hundred fifty-eight thousand one
hundred (158,100) nor more than one hundred fifty-eight thousand two hundred
(158,200), according to the 2020 federal census;
(7) Fifteen million dollars ($15,000,000) to the county government of a
county having a population of not less than thirty-five thousand nine hundred
(35,900) nor more than thirty-six thousand (36,000), according to the 2020
federal census; and
(8) Three million dollars ($3,000,000) to the county government of a
county having a population of not less than fifty-six thousand seven hundred
(56,700) nor more than fifty-six thousand eight hundred (56,800), according to
the 2020 federal census.
(g)
(1) Subject to the availability of funds, the Tennessee emergency
management agency shall provide direct assistance recovery grants to counties
included in a declaration made on or after September 26, 2024, and prior to
October 3, 2024, for a disaster certified by the federal emergency management
agency. The Tennessee emergency management agency shall consider
appropriate factors, including population, property damage, and need, and

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allocate grants to counties accordingly. Each county that receives direct
assistance recovery grants shall in turn disburse funds from such grants to
households on a first-come, first-served basis after considering need and
availability of funds.
(2) The Tennessee emergency management agency shall develop and
provide to counties a standardized application form for households to apply for
direct assistance recovery grant funds. The application must require a
demonstration of need, according to the category of need specified in subdivision
(g)(4), from the applicant.
(3) The office of the county mayor or county executive shall administer
the application process and disbursement of funds to eligible households. Such
office is authorized to hire temporary staff to assist with implementing this
subsection (g), and may use a percentage of direct assistance recovery grant
funds received from the Tennessee emergency management agency to pay
reasonable expenses for the administration and disbursement of grant funds and
the wages of temporary staff.
(4) Except as provided in subdivision (g)(3), direct assistance recovery
grant funds must be used only to assist eligible households with one (1) or more
of the following:
(A) Repair or replace damaged real or personal property;
(B) Replace the loss of personal effects; and
(C) Paying rent and utilities.
(5) The county must keep a record of disbursed direct assistance
recovery grant funds for purposes of an audit by the comptroller of the treasury.
The record must include each application, applicant's name and residential

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address, amount requested, amount received, and the category or categories of
need specified in subdivision (g)(4). The record must be kept for the period of
time as required and determined by the comptroller of the treasury. The county
must also publish on the county's website, an aggregated report that details the
number of applications received, the number of applications approved, the total
amount of funds requested, the total amount of funds disbursed, and the total
amount of funds expended on grant administration.
(6) Each county described in subdivision (g)(1) shall set and publish the
beginning and end dates of the application period, which must begin on the
effective date of this act, and end thirty (30) days after that date. A county has
fifteen (15) days to review applications, and funds must be awarded within fifteen
(15) days of the end of the review period and disbursed as expeditiously as
possible. Only one (1) application may be submitted per household.
(h) The Hurricane Helene disaster recovery fund and disbursements of county
recovery grants and direct assistance recovery grants are subject to examination and
audit by the comptroller of the treasury.
(i) If a person filing a claim or invoice for a grant or grant funds, including for
reimbursement, knowingly makes a false, fictitious, or fraudulent statement or
representation, or knowingly submits false, fictitious, or fraudulent documentation or
information to a county, the Tennessee emergency management agency, or the state
treasurer, then such person is liable under the False Claims Act, compiled in title 4,
chapter 18.
(j) Rules may be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5, in order to ensure the funds are received
and expended for the purposes consistent with this section.

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SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.