Tennessee to launch $100M loan program to help with Hurricane Helene cleanup

NASHVILLE, Tenn. (AP) — Tennessee Gov. Bill Lee says counties severely impacted by Hurricane Helene will soon be able to access a new $100 million loan program designed to help clear debris and repair damaged water systems.

Lee announced the program, dubbed the Helene Emergency Assistance Loan or HEAL program, on Thursday. The Republican says the no-interest loans will go toward communities while they wait for federal reimbursements.

"Federal dollars will be available later, but these communities need immediate relief,” Lee said in a statement. “Tennessee’s record of fiscal conservatism has placed us in a strong financial position to make government work for the people and step up to help in this time of need.”

Lee says the idea was inspired following his meeting with a local county mayor in East Tennessee just days after Hurricane Helene ravaged multiple southern states. During that conversation, Lee said the mayor was concerned about not making payroll while paying for clean-up costs.

The program will be divided by allocating $35 million for water and wastewater repairs and $65 million for debris removal. The state funding is being pulled from Tennessee's Medicaid program, known as TennCare. Lee said these dollars are supposed to assist health and welfare, which is what the loan program is designed to do.

Counties eligible for assistance include Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi and Washington.

Tennessee has reported 17 deaths are a result of Hurricane Helene's rampage throughout the state, but a few residents remain missing. Numerous bridges and roads remain damaged as cleanup efforts continue.