Bill > HB563

This bill establishes the Small Municipality Revenue Recovery Grant Program to provide financial assistance to small municipalities experiencing economic hardship. The program is designed for municipalities with 10,000 or fewer residents that have suffered a 15% or more revenue decrease due to reduced or terminated private sector contracts. The comptroller will administer the grant program, which can provide between $100,000 and $7 million to qualified municipalities. Grant funds can only be used for economic development programs or specific projects aimed at creating jobs, such as purchasing property, constructing facilities, or improving infrastructure. Municipalities must apply through a standardized application process, and the comptroller will develop rules governing application deadlines, fund disbursement, and monitoring of grant usage. Importantly, municipalities cannot apply for these grants until January 1, 2026, and the comptroller must have the program implementation ready by that date. The bill takes effect on September 1, 2025, providing a framework to support the economic recovery of small Texas municipalities facing significant financial challenges.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB563