C

Tennessee lawmakers on Tuesday green-lit a $100 million state disaster fund intended to provide assistance to local governments and individuals when Federal Emergency Management Agency aid falls short.

The bill’s passage marks a concrete step toward bolstering the state’s disaster response apparatus as President Donald Trump’s administration looks to downsize FEMA and transfer more preparedness responsibility to states.

“It’ll help with smaller disasters where FEMA cannot and will not help,” Rep. Tim Hicks, a Washington County Republican and the bill’s sponsor, said Tuesday.

Gov. Bill Lee’s proposed budget seeds the Governor’s Response and Recovery Fund with $100 million in one-time funds, in addition to a recurring $356,400 to establish four new staff positions.

The fund mirrors FEMA’s disaster assistance model, but aims to make financial aid more accessible to communities that face steep recovery costs but do not qualify for a federal disaster declaration. 

Since January 2023, Tennessee has managed 11 disasters that did not meet criteria for federal assistance, according to data gathered by Gov. Bill Lee’s office and the Tennessee Emergency Management Agency.

Rep. Kip Capley, a Summertown Republican, said his district could benefit from state aid.

“The 71st district in the past four years has had several tornadoes that have come through and done a lot of damage, but it’s just been right under that FEMA threshold, so the counties have been left out to dry and pick up the tabs,” Capley said.

Lawmakers have questioned whether $100 million in seed funding will be sufficient to address Tennessee’s growing number of disasters, especially if FEMA significantly reduces its post-disaster aid. 

Over the last decade, Tennessee has seen an average of one disaster every eight months, Hicks said.

The Tennessee Emergency Management Agency will administer the fund, which was originally created in 2025 to help communities impacted by Hurricane Helene. The new legislation defines pathways for local governments and individuals throughout the state to seek assistance when federal aid is unavailable or insufficient. 

Hicks said the fund also aims to quickly distribute money to eligible communities in need. FEMA assistance has no set timeline, making the delivery of federal funds unpredictable.

“There’s going to be no hesitation this time,” Hicks said. “You cannot rely and trust and put your faith in the federal government anymore. This is state money.”

The bill passed 85-4 in the House, with six representatives present but not voting, and 29-1 in the Senate. It now moves to Lee’s desk.

Legislation defines pathways for state help

The structure of the state’s disaster fund is similar to its federal counterpart.

FEMA uses per capita damage cost as a benchmark to gauge whether local and state governments can handle recovery without federal help. Those thresholds currently stand at $4.72 per capita for counties, and $1.89 per capita for states. The president must issue an emergency declaration or a major disaster declaration to release various levels of federal aid.

The Tennessee Emergency Management Agency will be charged with setting rules for the fund, including defining county per capita thresholds to determine eligibility. 

Rep. John Ray Clemmons, a Nashville Democrat, asked if a cost-per-capita benchmark could pose limitations for some communities.

“We have some small counties with pretty high per capita incomes, but if you have a pretty serious emergency, you can wipe out that county pretty substantially,” he said. 

Hicks said the governor has “full control” over granting assistance and can waive eligibility rules, allowing the ability to take a disaster’s scope into account.

Assistance could be delivered in grants, low-interest loans or no-interest loans. Funding would not be available for costs already covered by federal assistance or insurance.

Money from the fund would be available to eligible counties, cities, municipalities, metropolitan governments or local education agencies if:

• The governor and local jurisdiction has declared a state of emergency or disaster declaration for that area
• Federal assistance is not available or not sufficient to meet recovery needs
• Eligible costs as determined by TEMA exceed the county’s per-capita indicator, which will be set by TEMA and published on its website
• The chief elected official of the local governing body submits a written request and proof of eligibility to TEMA

Individuals would be eligible for funds if:

• They demonstrate Tennessee residency and lawful presence in the United States, and reside in a county that is under a local state of emergency
• They meet proof of loss or need, as defined by TEMA
• The governor has issued a state of emergency or disaster declaration
• State damage costs are not likely to meet FEMA’s threshold for individual assistance under a major disaster declaration
• Eligible costs within a county exceed an amount determined by TEMA
• The local chief elected official’s request to TEMA includes a request for aid for eligible individuals

The legislation also defines how local governments can use the funding, including:

• Debris removal
• Emergency protective measures to reduce immediate threats to life, public health or safety
• Reduction of immediate threats of significant additional damage to public or private property
• Repair or replacement of roads and bridges and other transportation infrastructure
• Repair or replacement of buildings
• Repair or replacement of equipment
• Repair or replacement of public utilities

Grants will have a local cost share based on the county’s economic status, which can be adjusted or waived by the governor. Cost shares range from 12.5% for “distressed” counties to 50% for “attainment” counties.

Local governments that receive funds must have full coverage for all-risk property insurance and flood insurance within 120 days of funding approval.

Projects must be completed within 18 months of receiving the funding. Unless TEMA grants an extension, any money spent after the 18-month mark is not eligible for reimbursement, according to the bill.

How long does it take to get federal assistance after a disaster? There’s no set timeline.

Questions arise over lawful residency requirement

Rep. Justin Jones, a Nashville Democrat, questioned the lawful residency requirement for individual assistance. Jones said he visited Unicoi County after Hurricane Helene and met with agricultural workers in affected communities, some of whom “were afraid to get services at the local high school where there were relief supplies, because they did not know if they would be dehumanized.”

Requiring proof of lawful residency also poses logistical issues, he said, because documents may be lost or destroyed during disasters. 

“It sets up a scenario where people who need help will not be able to access help,” Jones said.

Hicks said his goal is to “help Tennesseans … to help folks that we know have contributed to the community and contributed to the tax base.”

Undocumented immigrants paid $8,889 per person in federal, state and local taxes in 2022, according to a study published by the Institute on Taxation and Economic Policy, a nonprofit think tank, in 2024.

Hicks did not address Jones’ concerns about access to documents following disasters.

“I think that local communities, through individual help in this bill, if there is someone that desperately needs help, they would always be able to get it,” Hicks said.

SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX