Small Municipalities Federal Match Fund; create., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Municipalities; Appropriations

By: Senator(s) Simmons (13th), McMahan, Younger, Brumfield,
England, McCaughn, Mumford, Simmons (12th), Chassaniol, Gillespie Isom, Pope

Senate Bill 2578

(As Sent to Governor)

AN ACT TO CREATE THE SMALL MUNICIPALITIES FEDERAL MATCH FUND
AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSE OF PROVIDING MATCHING
FUNDS TO SMALL COMMUNITIES THROUGHOUT MISSISSIPPI WHICH RECEIVE DISCRETIONARY
FEDERAL FUNDS; TO PROVIDE THAT THE MONIES DISBURSED FROM THE FUND SHALL BE
MATCHING FUNDS USED TO DRAW DOWN FEDERAL FUNDS FOR CERTAIN MUNICIPALITIES; TO
REQUIRE THAT MONIES DISBURSED FROM THE FUND SHALL BE AT A SET MATCH RATE OF
TWENTY PERCENT (20%) IN ANY COMBINATION OF EITHER STATE OR LOCAL FUNDS
CONTRIBUTED BY THE SMALL MUNICIPALITY TO EIGHTY PERCENT (80%) FEDERAL FUNDS
RECEIVED; TO PROVIDE THAT MONIES APPROPRIATED OUT OF THE FUND MAY BE USED TO
REIMBURSE ACTUAL OVERSIGHT COSTS INCURRED BY THE DEPARTMENT OF FINANCE AND
ADMINISTRATION UP TO A CERTAIN AMOUNT; TO REQUIRE THE DEPARTMENT OF FINANCE AND
ADMINISTRATION TO FILE A REPORT ON THE FUND TO CERTAIN PUBLIC OFFICIALS; AND
FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  (1)  As used in this section, "small
municipality" shall mean a municipality which has a population of less
than ten thousand (10,000) according to the latest federal decennial census.

(2)  There is created a special fund in the
State Treasury to be known as the "Small Municipalities Federal Match
Fund" which shall consist of monies from any source designated for deposit
into the fund.  Unexpended amounts remaining in the fund at the end of a fiscal
year shall not lapse into the State General Fund, and any investment earnings
or interest earned on amounts in the fund shall be deposited to the credit of
the fund.

(3)  (a)  Monies in the fund
shall be disbursed by the Department of Finance and Administration for the
purpose of providing funds to small municipalities throughout Mississippi which
receive discretionary federal funds.  The monies disbursed from the fund shall
be matching funds to be used to draw down federal funds for qualifying small
municipalities under this fund.  The monies disbursed under this fund shall be
at a set match rate of twenty percent (20%) in any combination of either
state funds or local funds contributed by the small municipality to eighty
percent (80%) federal funds received.  A municipality shall not receive more
than Two Hundred Thousand Dollars ($200,000.00) under this section within a
single fiscal year.

(b)  In addition to the
purposes in paragraph (a) of this subsection, monies appropriated out of the
fund may be used to reimburse reasonable actual and necessary oversight costs
incurred by the Department
of Finance and Administration in administering this fund.
Reimbursement of reasonable actual and necessary costs and expenses for
assistance shall not exceed one and twenty-five one-hundredths percent (1.25%)
of the monies appropriated out of the fund.

(4)  On or before January 5 of each
year, the Department of Finance and Administration shall file an accounting of
and report on funds disbursed from the Small Municipalities Federal Match Fund,
including an accounting of the actual costs and expenses incurred by the
department and the amount of funds disbursed.  The report shall be filed with
the Speaker of the House, the Lieutenant Governor, the Chairs of the
Appropriations Committees of the Senate and the House, the Chair of the Finance
Committee of the Senate, the Chair of the Ways and Means Committee of the House
and the Governor.

SECTION 2.  This act shall take effect
and be in force from and after July 1, 2026.