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Panel sends disaster-recovery funding changes to committee calendar

Cities and Counties Subcommittee · March 11, 2026
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Summary

The subcommittee advanced House Bill 2543 to move administration of the governor's recovery fund to Tennessee Emergency Management Agency and to create two pathways for assistance — local governments and limited individual aid when federal help is unavailable — with guardrails tied to emergency declarations and formal requests.

House Bill 2543, presented by Chairman Hicks (speaker 10), seeks to strengthen Tennessee’s capacity to respond to disasters by placing administration of the governor’s response and recovery fund with the Tennessee Emergency Management Agency (TEMA) and by clarifying eligible uses. The sponsor told the committee the fund would help counties, cities and school districts with debris removal, road and bridge repair, water and sewer restoration, public buildings and emergency infrastructure when federal aid is insufficient.

Hicks emphasized guardrails in the bill: assistance is limited to instances where (1) the governor and a local government have declared a state of emergency, (2) federal aid is unavailable or unlikely, (3) damage exceeds a threshold set by the administering team, and (4) the local jurisdiction formally requests assistance (SEG 244–249). The measure also permits limited individual assistance when FEMA aid is not available. The committee voted to advance the bill by voice (6–0) (SEG 266–269).

The transcript does not include the fiscal note or detailed program rules; those will determine implementation. The bill’s proponents framed it as particularly helpful to rural and smaller jurisdictions that fall short of federal disaster thresholds.