H.B. No. 561 amends Section 436.201(a) of the Government Code to expand the eligibility criteria for local governmental entities to receive grants related to the realignment of defense worker jobs or facilities. The bill specifies that in addition to municipalities, counties, regional planning commissions, public junior college districts, and Texas State Technical College System campuses located in defense communities, a political subdivision with the powers of a defense base development authority is also eligible. Furthermore, the bill introduces a new category for eligibility, which includes municipally owned utilities that act as retail public utilities in defense communities.

The bill removes the previous requirement that only defense base development authorities were eligible for grants, thereby broadening the scope of entities that can apply for funding. This change aims to support a wider range of local governmental entities affected by defense job realignments, enhancing their ability to adapt and thrive in the changing economic landscape. The provisions of this act are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 436.201 (Government Code 436)
House Committee Report: Government Code 436.201 (Government Code 436)
Engrossed: Government Code 436.201 (Government Code 436)