HB 164 creates the Texas Flood Recovery, Reimbursement, and Reconstruction Program within the Texas Division of Emergency Management to provide targeted relief to people affected by the July 2025 Hill Country floods. The program is designed to reimburse certain flood-related losses and to encourage rebuilding in safer locations or above flood levels, with the stated goal of reducing future flood risk and taxpayer burden. It also establishes application procedures, award priorities, documentation requirements, deadlines, and an appeals process.
For real property owners, the bill makes eligible Texas residents and Texas-domiciled entities that owned flood-damaged property, maintained non-flood insurance, and received a full or partial denial from an insurer or FEMA. Awards may cover a portion of reconstruction costs, with higher reimbursement available if the property is rebuilt outside a floodplain or above FEMA base flood elevation using specified resiliency standards. The bill also creates a separate program for tenants to recover essential personal property losses from rental units damaged in the floods, subject to eligibility rules and caps. The program is funded through appropriations and gifts, grants, and donations, and it expires on September 1, 2035 unless continued by the legislature.
HB 164 would add a new Chapter 419A to the Texas Government Code, giving the Texas Division of Emergency Management authority to administer a flood recovery reimbursement program and coordinate with the General Land Office and FEMA. It would create new statutory eligibility standards, award formulas, reporting requirements, audit obligations, and fraud enforcement mechanisms, including attorney general recovery actions and civil penalties. The bill would also temporarily alter how state disaster recovery aid is delivered by directing funds toward rebuilding and mitigation rather than only replacement of losses, while limiting duplication of benefits from insurance, FEMA, NFIP, or other assistance programs.
Based on the bill text, the measure is framed in supportive terms as a fiscally responsible recovery program that helps flood victims while steering rebuilding away from future flood risk. Because no committee transcripts or votes are provided, there is no recorded public debate or roll-call evidence in the supplied materials to show broader legislative sentiment. The structure of the bill suggests an emphasis on accountability, prioritization, and anti-fraud controls, which may be intended to make the proposal more politically acceptable.
The main potential points of contention are eligibility limits, award caps, and the requirement that many applicants show insurance denials or partial denials before receiving aid. The bill also distinguishes between property owners and tenants, excludes luxury or otherwise reimbursable property, and allows the division to prioritize applicants by income, property value, age, dependents, and disability status, which could raise fairness or administrative concerns. Another possible issue is the bill’s preference for rebuilding outside floodplains or above base flood elevation, which may be viewed as beneficial risk reduction by some but burdensome or costly by others who want assistance to rebuild in place.