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SB 2578 Mississippi Senate · 2026 Regular Session

Small Municipalities Federal Match Fund; create.

SB 2578 creates a state fund to help small Mississippi municipalities (with under 10,000 residents) access federal grants by providing matching funds. It requires participating towns to contribute 20% of eligible project costs, with the state fund covering the remaining 80% to draw down federal money. The fund also allows reimbursement for up to 1.25% of its total amount for oversight costs by the Department of Finance and Administration. The department must annually report fund usage and costs to state officials, and the bill takes effect July 1, 2026.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates state fund (80% match) for small municipalities to access federal grants, directly allocating state budget resources to leverage federal funding for municipal fiscal support.95% confidence
Bill status signed all 5 stages cleared
Introduction
Feb 2026
Committee Review
Mar 2026
Senate Passage
Feb 2026
House Passage
Mar 2026
Signed into Law
Mar 2026
Introduced Feb 13, 2026 Signed Mar 23, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

As Introduced → As Passed the upper · 3 edits
MINOR
The Senate passed SB 2578 with three substantive changes: the match rate now allows state funds (not just local funds) to count toward the 20% local match, a new per-municipality annual cap of $200,000 was added, and the agency responsible for oversight costs was corrected from the Mississippi Development Authority to the Department of Finance and Administration. Two additional senators were added as sponsors.
ELIGIBILITY

The 20% match requirement now allows 'any combination of either state or local funds' instead of requiring only 'local funds contributed by the small municipality.' This broadens the sources that can satisfy the match, making it easier for small municipalities to qualify.

FISCAL

A new per-municipality cap was added: no single municipality may receive more than $200,000 from the fund within a single fiscal year.

ENFORCEMENT

The agency responsible for administering the fund and incurring oversight costs was changed from the Mississippi Development Authority to the Department of Finance and Administration, aligning it with the rest of the bill which already assigned administration duties to that department.

Floor votes · Senate Feb 11, 2026 · House Mar 10, 2026

How they voted

52–0
Passed
Total votes 52
Feb 11, 2026
D Democratic18
18 Yea
100% Yea
R Republican34
34 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
16
Key actions
6
Committee
4
Amendments
2
Mar 23, 2026
Signed into law
Approved by Governor
executive
Mar 10, 2026
Lower · Passed
Passed
lower
Mar 10, 2026
Introduced
Amendment Tabled
lower
Mar 3, 2026
Lower · Passed
Title Suff Do Pass As Amended
lower
Feb 16, 2026
Committee
Referred To Municipalities;Appropriations A
lower
Feb 13, 2026
Introduced
Transmitted To House
upper
Feb 11, 2026
Upper · Passed
Passed As Amended
upper
Feb 11, 2026
Upper · Passed
Amended
upper
Feb 3, 2026
Upper · Passed
Title Suff Do Pass
upper
Jan 19, 2026
Committee
Referred To Municipalities;Appropriations
upper
0 primary · 10 co-sponsors

Sponsors

No sponsor information available.