TN HB2543

Transfers administration of the Governor's Response and Recovery Fund from the Commissioner of Finance and Administration to the Director of the Tennessee Emergency Management Agency

Expands fund eligibility to include both local governmental entities (counties, cities, municipalities, metropolitan governments, local education agencies) and individual residents who demonstrate Tennessee residency, lawful U.S. presence, and proof of loss following declared emergencies

Requires both state and local emergency declarations, plus federal assistance being unavailable or inadequate, before fund monies can be distributed; eligible costs must exceed countywide per capita impact thresholds

Establishes tiered local cost-sharing requirements for grants based on county economic status: 50% for Attainment counties down to 12.5% for Distressed counties, with governor authority to waive these requirements

Limits eligible projects to debris removal, emergency protective measures, infrastructure repair, building/equipment replacement, and utility restoration, with an 18-month completion deadline and mandatory insurance requirements within 120 days of approval; effective July 1, 2026