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Tennessee governor announces new $100 million loan program to help counties recover from flooding

Governor Bill Lee said the loan program would not charge any interest. It's named the Helene Emergency Assistance Loan Program.

KNOXVILLE, Tenn. — East Tennessee counties working to recover after Hurricane Helene brought devastating floods have a new resource they can tap to heal the community.

Governor Bill Lee announced a new "Helene Emergency Assistance Loan Program" on Thursday during a press conference. He said the loan program offers a total of $100 million for impacted counties at no interest, functioning as a stopgap while the state waits for federal relief money. The program sets aside $65 million to pay for the removal of dangerous debris and $35 million for repairing water and wastewater systems.

Lee said the money comes from the Shared Savings Program in the state's Medicaid waiver with the federal government, designated to benefit the health and wellness of people in the state. He said the money had not been allocated before the hurricane hit. Lee also said he expects the state to be reimbursed by the federal government for the HEAL Program.

Only the counties included in the state's disaster declaration can access the funds. Twelve counties are included in that list, available below.

  • Carter County
  • Claiborne County
  • Cocke County
  • Grainger County
  • Greene County
  • Hamblen County
  • Hawkins County
  • Jefferson County
  • Johnson County
  • Sullivan County
  • Unicoi County
  • Washington County

"It is an interim strategy for them to cross that fiscal bridge and get to the place when the federal funding will begin to come in," said Lee. 

He said the Shared Savings Program money had not been used previously because the state considered funding TennCare programs "in another way." Lee also said he believed the biggest need East Tennessee is facing was "coordination and cooperation." The state has worked with federal partners "since day one," the governor said.

"For us, this has been a survivor-centric response," he said.

The Federal Emergency Management Agency said it has administered more than $5 million in aid payments to East Tennessee since the hurricane hit, including payments to individuals and households.

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