Relating to the establishment of the Rural Infrastructure Disaster Recovery Program.

New disaster repair grants for rural communities

Beginning September 1, 2025, Texas creates a program offering discretionary grants to qualifying local governments for disaster repairs. Grants cover damaged roads, public schools, hospitals and other health facilities, water and wastewater systems, and airport facilities. Counties must have fewer than 100,000 people, an economy measured by gross domestic product below $2 billion, and poverty above 15%. They must also lie wholly or partly in a governor-declared disaster area. Assessed disaster damage must exceed 10% of state and local sales and use taxes collected in that county the prior state fiscal year. Cities, special districts, school districts, junior college districts, and other local government bodies qualify if located wholly or partly in an eligible county. Grants only support repair or rebuilding of the recipient's critical infrastructure damaged by a disaster reasonably considered a public calamity. Applications must describe the project, estimate its total cost, and document that it does not qualify for federal FEMA funding. The administering division can require more eligibility information and must set rules for applications, awards, grant payments, and program administration. A new account in the state's general revenue fund pays for grants and necessary program administration. It accepts legislative appropriations or transfers, gifts, grants, and account earnings. The law sets no fixed funding or grant amount and provides no direct household payments.