Texas HB563 establishes a grant program for small municipalities facing economic hardship.

HB563 creates the small municipality revenue recovery grant program, providing financial aid for economic development to municipalities with populations of 10,000 or less that have experienced a 15% or greater decrease in total revenue. The program, administered by the comptroller, allows grants of up to $7 million for economic development programs or specific job creation projects. Municipalities can apply for grants starting January 1, 2026, with the program taking effect September 1, 2025.

Texas HB563 establishes a grant program for small municipalities facing economic hardship.

HB563 creates the small municipality revenue recovery grant program, providing financial aid for economic development to municipalities with populations of 10,000 or less that have experienced a 15% or greater decrease in total revenue. The program, administered by the comptroller, allows grants of up to $7 million for economic development programs or specific job creation projects. Municipalities can apply for grants starting January 1, 2026, with the program taking effect September 1, 2025.