Financial relief is available for local governments impacted by Winter Storm Fern through a new legislature-created program.
The Mississippi Emergency Management Agency announced Tuesday that it is launching the Local Government Disaster Recovery Emergency Loan Program, offering aid to eligible communities that bore the brunt of the Jan. 23-27 ice storm. The move comes after lawmakers decided during this year’s session to pass a bill offering additional relief to those impacted by the state’s worst winter weather event in more than three decades.
According to officials, the program has a $125 million loan pool that cities and counties can access to fund recovery efforts while awaiting reimbursement from the Federal Emergency Management Agency. Funding will come with no interest upfront, but a 3% annual interest rate after reimbursement has been received from the federal government.
The goal of the program is to ensure that critical recovery work can begin immediately without placing additional strain on local budgets.
RELATED: Disaster recovery sites opening in Mississippi for Winter Storm Fern survivors
Loan recipients must establish a dedicated revenue source for repayment if FEMA declines to reimburse expenses, as part of the program’s guidelines. If reimbursement is approved, the loan must be repaid immediately. The program remains open for issuing loans until July 2027.
How the loan program became law
State lawmakers initially passed legislation creating a loan program for governments affected by Winter Storm Fern with a 1% annual interest rate. The measure was vetoed by Republican Gov. Tate Reeves as the state’s top official said what was sent to his desk was “materially different” from what lawmakers had agreed upon.
Reeves claimed he had negotiated a 1% monthly interest rate – or what would even out at 12% annually – and alleged that someone altered the final language of the bill after legislative approval. The governor further asserted that the change was “plainly unconstitutional” and “possibly criminal.”
According to lawmakers, the inclusion of the word “monthly” in earlier versions of the bill was a clerical error that would have resulted in an interest rate far higher than they intended. They said the Senate unanimously approved a correction removing the language before the bill was finalized and sent to Reeves.
Republican Lt. Gov. Delbert Hosemann accused the governor of misrepresenting the process and unfairly targeting lawmakers and legislative staffers. Reeves originally blamed Democratic Sen. Hob Bryan for the alteration, saying the amendment was made on March 17. Hosemann, on the other hand, said the amendment was made on March 13 by Republican Sen. Tyler McCaughn.
Afterward, despite likely having well enough votes to override the governor’s veto, the legislature instead decided to gut an unrelated bill and insert language that created the current disaster loan assistance program. The proposal passed both chambers with unanimous support on March 26. Reeves signed the measure into law on April 6.
How Winter Storm Fern affected Mississippi
Winter Storm Fern impacted over half of Mississippi, destroying trees and power lines, leaving roughly 180,000 customers without power at its peak, and killing 29.
As of late February, more than 12,000 insurance claims had been filed, totaling over $107 million, according to the Mississippi Insurance Department. The department has not updated that number since.
