H.B. No. 254 amends Section 418.083 of the Government Code regarding the eligibility criteria for political subdivisions to apply for grants from the Rural Infrastructure Disaster Recovery Program. The bill specifies that a county must have a population of less than 100,000, a gross domestic product of less than $3 billion (increased from the previous threshold of $2 billion), a poverty rate greater than 10% (reduced from 15%), and must be located wholly or partly in a disaster area. Additionally, the total dollar amount of damages from the disaster must exceed 10% of the state and local sales and use taxes collected in the county during the fiscal year preceding the disaster.

The bill also clarifies that other political subdivisions, which are not counties, can be eligible if they are located wholly or partly in a qualifying county. The changes aim to broaden the eligibility criteria for disaster recovery grants, making it easier for smaller counties to receive assistance following a disaster. The act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on the 91st day after the legislative session if such a vote is not achieved.