Relating to the applicability of the law governing a grant program for public improvement projects for unincorporated communities in certain counties.

HB 1038 amends Texas Local Government Code Section 388.001 to clarify which counties qualify for a grant program supporting public improvement projects in unincorporated communities. It establishes two specific eligibility categories: (1) counties with under 3,000 residents adjacent to three or more counties of under 10,000 residents and on an international border, or (2) counties with under 7,000 residents adjacent to no more than two such counties and on an international border. The bill directly affects unincorporated communities in qualifying counties by determining their access to state grant funding for infrastructure projects. This change modifies existing eligibility rules without altering the grant program's core purpose. The bill is currently pending in the County & Regional Government committee.