Unanimous Approval: Local Governments Disaster Recovery Emergency Loan Program Act Integrated Into New Legislation

Mississippi lawmakers have reinstated the 2026 Local Government Disaster Recovery Emergency Loan Program after the initiative was previously vetoed by the governor. The language establishing the program was incorporated into another bill, which subsequently received unanimous approval.

The program is administered by the Mississippi Emergency Management Agency (MEMA) and is designed to provide temporary emergency loans to eligible local governments impacted by Winter Storm Fern, identified as disaster number DR-4899-MS.

The primary objective of the loans is to accelerate cash flow for disaster-related expenses. This allows local governments to maintain financial operations while they await the obligation of Public Assistance funding from the Federal Emergency Management Agency (FEMA).

According to legislative documents, a special fund has been created in the State Treasury designated as the 2026 Local Governments Disaster Recovery Emergency Loan Fund to support these operations.

The financial terms of the program stipulate that all loan funds must be repaid to the State of Mississippi. This repayment obligation remains mandatory regardless of any final FEMA eligibility or obligation determinations.

Funding for the program is limited. Loan awards are calculated on a pro rata basis based on documented disaster damages directly related to Winter Storm Fern. Individual loans are capped and will not exceed 75% of the eligible expenses incurred by the applicant.

The application period for the program opened on April 28, 2026, and is scheduled to close on April 30, 2027. MEMA has specified that no loans may be issued after July 1, 2027.

To qualify for a loan, applicants must meet several specific eligibility criteria:

• The applicant must be an eligible local government entity under FEMA Public Assistance, defined as a county, municipality, or political subdivision within the bounds of the federally declared disaster area that has applied for FEMA assistance.
• The entity must have submitted a Request for Public Assistance (RPA) for DR-4899.
• The applicant must have at least one active Category A–F project that has reached Phase 4 in the FEMA Grants Portal.
• The entity must have incurred disaster-related costs directly related to Winter Storm Fern and provided sufficient supporting documentation.

The program is not operating on a first-come, first-served basis. All eligible applicants included under the Winter Storm Fern declarations DR-4899 are permitted to apply through the designated online system.