Tennessee House approves Helene relief package creating recovery and payment funds

NASHVILLE — The Tennessee House of Representatives on Jan. 30 approved Senate Bill 3, establishing a Hurricane Helene payment fund and a government response and recovery fund intended to speed state assistance to counties and residents affected by the storm and to bridge gaps while federal aid is processed.

The measure, carried in the House by Representative Jeremy Hicks, creates a revolving loan mechanism and a fund to allow the state to pay interest on local government loans (up to 5% annually for three years) and to provide direct assistance for agricultural losses, unemployment help and business recovery efforts without waiting for federal reimbursements.

Sponsor Representative Hicks said, “This bill accomplishes 2 things. 1st, Senate Bill 3 establishes the hurricane Helene payment fund. This will help local governments manage loan interest for recovery cost. Local governments often rely on loans to cover upfront cost while waiting for federal reimbursements. This will allow the state to pay interest for the counties up to 5% annually for 3 years.”

The bill drew extended debate over whether the package did enough for homeowners whose houses were destroyed. Representative David Mitchell offered an amendment to create a $50 million program that would provide $10,000 grants to 5,000 homeowners, saying, “When people wake up 1 day and they have a nice home with all their belongings, and the next morning, they have nothing... I lived through a flood in 2010 in my community... I saw my neighbors. When you lose your house, you've already got a mortgage on it. Now you've gotta get another mortgage to rebuild it.” That amendment was moved, debated and ultimately tabled by a motion from Representative Williams; the motion to table was approved by the House.

Representative Hicks and other supporters said the bill is intended to move money and help localities quickly, including by paying third parties and nonprofit builders that are already working in northeast Tennessee. “We have all kinds of great, absolutely great nonprofits in Northeast Tennessee that can use this mechanism to help build homes for people,” Hicks said, adding the fund is intended to revolve and be available over time.

Other members emphasized urgency and the need for this as a first step. Representative Towns said House members must act faster after disasters: “People want money and they need money and they need it quick, fast, and in a hurry to make them whole.” Representative Hill, who chaired the disaster relief committee in the special session, said the bill “does exactly what we need right now, which is trying to reach people.”

The House approved consideration of several proposed amendments; one amendment that would have limited the fund to Helene damage in Tennessee failed to receive the two-thirds vote necessary for consideration. Representative Mitchell later withdrew a second amendment after admonitions to remain on the bill’s subject.

Vote and next steps: The House recorded 97 yeas and no recorded nays in the final roll call and the bill was declared passed. The legislation establishes the funds and authority for distribution; administration details and any additional funding beyond this package were discussed by members as matters for future sessions or implementing rules.

The measure passed amid repeated appeals from East Tennessee members for additional and faster homeowner assistance; some members signaled plans for further proposals in the regular session.