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HB 5964

State management: funds; safeguarding tomorrow revolving loan fund; create.

2025-2026 Regular Session Introduced by Mike Mueller

Creates a Safeguarding Tomorrow Revolving Loan Fund to pool federal disaster funds and other assets for low-cost loans to Michigan counties, tribes, and agencies for disaster recov

bill electronically reproduced 05/13/2026
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Bill Summary · HB 5964

Summary of HB 5964 (2025-2026) – Michigan

Main purpose and intent

  • Establishes the Safeguarding Tomorrow Revolving Loan Fund in the Michigan State Treasury.
  • Creates a mechanism to accept and manage federal disaster assistance and other sources of money for a revolving loan fund that can support emergency management and related activities.
  • Provides for administration, lending, and investment of fund assets, with the goal of supporting local governments and certain tribes in disaster-related activities under federal law.

Key provisions and changes

  • Creation of the fund: The Safeguarding Tomorrow Revolving Loan Fund is created within the state treasury (Sec. 19a(1)).
  • Funding sources:
    • Money and other assets received under Section 205 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5135) must be deposited into the fund (Sec. 19a(2)).
    • The state treasurer may also receive money and other assets from any other source for deposit into the fund (Sec. 19a(2)).
  • Investment and earnings:
    • The state treasurer will direct the investment of fund assets and credit interest and earnings from investments to the fund (Sec. 19a(2)).
    • Funds remaining at the close of the fiscal year stay in the fund and do not lapse to the general fund ( Sec. 19a(2)).
  • Administrative governance:
    • The Department is designated as the administrator of the fund for auditing purposes (Sec. 19a(3)).
    • The Department may expend money from the fund only for reasonable costs associated with administering the section (Sec. 19a(4)).
  • Borrowing authority:
    • Political subdivisions or tribes may borrow from the Safeguarding Tomorrow Revolving Loan Fund in accordance with 42 U.S.C. 5135 and related regulations (Sec. 19a(5)).
  • Definition of “tribe”:
    • For purposes of this section, “tribe” means an Indian tribe listed in the list published under 25 U.S.C. 5131 (Sec. 19a(6)).

Who would be affected

  • State government: Michigan State Treasury would manage the fund, including investment decisions and deposits of federal and other eligible funds.
  • Departments/agencies: The state Department (presumably the department of treasurer and related agencies) would administer the fund for auditing and oversee administration costs.
  • Local entities: Political subdivisions (e.g., counties, municipalities) and federally recognized tribes in Michigan could borrow from the fund to finance eligible disaster recovery or mitigation activities.
  • Tribes: Federally recognized tribes listed under 25 U.S.C. 5131 would be eligible borrowers, subject to federal requirements.

Significant procedural or timeline aspects

  • Introduction and status: Introduced May 13, 2026, by Rep. Mike Mueller (co-sponsor), assigned to the Appropriations Committee.
  • Administration and operations: The bill outlines ongoing fund management, including investment, annual retention of unspent funds, and audit responsibilities. It does not specify a funded appropriation amount but relies on deposits from federal disaster relief programs and other sources.
  • Effective date: Not explicitly stated in the text provided; typically would become effective upon enactment or a specified effective date in the final bill.

Practical impact

  • Establishes a formal mechanism to pool disaster relief and related funds in Michigan, enabling low-cost loans to local governments and tribes for resilience, mitigation, and recovery projects.
  • Creates a long-term funding instrument that preserves dollars within the fund across fiscal years, potentially increasing fund balance available for lending.
  • Aligns Michigan’s borrowing framework with federal disaster relief provisions (42 U.S.C. 5135) and related implementing regulations.

If you’d like, I can add a quick comparison to current Michigan practice or summarize potential policy implications for local governments.

Compiled from official sources — confirm details with the bill’s official record.

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