Georgia's state government has approved the diversion of $100 million to provide loans to farmers and aid in the cleanup efforts following the aftermath of Hurricane Helene. The decision was made by the Georgia State Financing and Investment Commission, which voted unanimously to reallocate the funds that were initially designated for construction projects or debt repayment.
After Hurricane Helene made landfall in Florida on September 26, it caused significant damage in the eastern part of Georgia, resulting in an estimated $6.46 billion in economic losses for the state's agriculture and forestry sectors. Cotton, pecan, and chicken farmers, as well as private timberland owners, suffered severe losses, with the damage being described as a 'generational loss' by state officials.
The Georgia Development Authority, a state agency that provides loans to farmers, will receive $75 million to offer disaster relief loans to farmers and related businesses in the agricultural industry. The remaining $25 million will be utilized for the cleanup of timber losses and debris.
Due to Georgia's surplus cash reserves, the state has been funding construction projects using available funds rather than issuing bonds to borrow money. The $100 million being reallocated had not been assigned to any ongoing projects and could potentially be replenished by lawmakers during the upcoming legislative session in January.
Following the devastation caused by Hurricane Helene, state leaders are exploring additional relief measures, including seeking federal assistance. They are advocating for Congress to provide block grants to states for distributing aid to farmers and for repairing damaged infrastructure.
The Federal Emergency Management Agency (FEMA) has already allocated significant funds for disaster relief efforts in Georgia, with over $1.3 billion spent on direct aid to individuals and businesses affected by the hurricanes.
While Georgia's state constitution prohibits direct aid to individuals and private entities, discussions are underway regarding a potential constitutional amendment to enable such assistance in times of disaster.
The Georgia Development Authority is set to commence the allocation of the $100 million for relief and recovery efforts in the coming days.
