TX HB563

Establishes the Small Municipality Revenue Recovery Grant Program administered by the Comptroller to provide financial assistance to municipalities with populations of 10,000 or less that experienced at least a 15% decrease in total revenue due to reduced or terminated private sector contracts

Grants may be awarded up to $7 million for economic development programs, or between $100,000 and $7 million for specific job-creation projects including purchasing property and constructing buildings, facilities, or infrastructure

Grant funds are restricted to economic development programs or projects that create or promote job creation within the municipality

Comptroller must adopt rules establishing standardized application processes, deadlines for applying and spending funds, and procedures for monitoring compliance and recovering misused grant money

Program implementation required by January 1, 2026, with applications accepted starting that date; Act takes effect September 1, 2025