Georgia’s state government has decided to divert $100 million towards loans for farmers and cleanup efforts following the aftermath of Hurricane Helene. The Georgia State Financing and Investment Commission voted unanimously to allocate the funds from money that was originally designated for construction projects or debt repayment. The storm, which hit the state in late September, caused widespread damage to the agriculture and forestry industries, resulting in billions of dollars in economic losses. Cotton, pecan, and chicken farmers, as well as owners of private timberlands, were particularly hard hit, with Lt. Gov. Burt Jones referring to the damage as a “generational loss.”
Due to Georgia’s significant surplus, the state has been able to fund construction projects using cash rather than borrowing money through bonds. The $100 million that is being redirected had not been earmarked for any ongoing projects, allowing for its reallocation towards disaster relief efforts. Lawmakers are considering the possibility of replenishing the funds during the 2025 legislative session, given the state’s fiscal surplus that was reported at the end of the previous year.
Unlike Hurricane Michael in 2018, which did not prompt a similar large-scale allocation of funds for relief efforts, the aftermath of Hurricane Helene has necessitated significant financial support. The damage caused by Helene has been estimated to be more than double the economic impact of Michael, prompting state leaders to take proactive measures. In addition to the $100 million allocation, state officials are also seeking additional relief from Congress through block grants that can be distributed to farmers for recovery purposes.
The Federal Emergency Management Agency (FEMA) has already allocated over $1.3 billion in direct aid to individuals affected by Hurricanes Helene and Milton. FEMA has also allocated funds for debris removal and emergency protective measures, highlighting the scale of the disaster and the need for substantial support. Georgia’s state government is working to coordinate efforts with federal agencies to provide additional resources for those impacted by the storms.
Georgia’s state constitution prohibits the government from giving direct aid to individuals and private businesses, citing concerns about gratuities or gifts. State officials, including Governor Brian Kemp and House Speaker Jon Burns, are exploring options to amend the constitution to allow for direct disaster aid. The Georgia Agribusiness Council President has also emphasized the need for a constitutional amendment to facilitate relief efforts for those affected by natural disasters. The Georgia Development Authority is set to begin disbursing the allocated funds for loans and cleanup efforts in the coming days.
