$1.5 million on hold across 3 MS Coast downtowns after Gov. Tate Reeves’ veto

Three Mississippi Coast cities are still waiting for a combined $1.5 million to improve downtown areas after Gov. Tate Reeves vetoed a bill this year that would have provided the money.

Biloxi, Moss Point and Pascagoula were each expecting hundreds of thousands of dollars from a grant program created to fund projects in cities that belong to the Mississippi Main Street Association, which helps preserve and develop downtowns.

Reeves said the proposal violated Mississippi’s Constitution because lawmakers tried to amend state law and pass funding measures in the same bill. He also said vibrant downtowns are important but argued letting the Mississippi Main Street Association administer the grants was not “prudent.”

“Allowing an association to administer a grant program for which its members are eligible to apply is akin to the proverbial fox guarding the henhouse,” Reeves wrote in a veto in March. “At best, such a practice will always be shrouded with an appearance of impropriety, even if there is absolutely none.”

The decision left some local projects on hold. Sue Wright, executive director of the Moss Point Main Street Association, said the city had been planning to use the funding to update the face of downtown buildings.

“We can’t begin without money,” she said.

Funding for downtowns

Nineteen cities expected to get funding this year after the Legislature approved the projects. The bill says Biloxi, Moss Point and Pascagoula were each supposed to receive $500,000.

Biloxi planned to spend the money improving the area under Interstate 110. Pascagoula planned to improve street design in its Flagship District, according to a project overview.

Kay Miller, executive director of Biloxi Main Street, said the city was going to use the money for lighting. “We were really excited about what this grant money was going to bring to Biloxi,” she said. “We hope that the funding will get approved.”

Susannah Northrop, executive director of Main Street Pascagoula, said the grant money was intended for the project’s second phase but that the first phase would still start this summer. The project includes updating a parking lot on Krebs Avenue and adding a crosswalk.

What’s next?

The bill tried to move the grant program’s administration from the Mississippi Development Authority to the Mississippi Department of Archives and History. It also would have raised the total amount cities could receive.

Reeves’ office has not responded to emails requesting comment on the veto. In his veto, Reeves said combining general legislation with appropriations “clearly violates the Constitution.”

He also questioned why the bill lets the Mississippi Main Street Association oversee grants for its dues-paying members. “While the Legislature is in the process of re-evaluating this grant program, I would encourage it to consider and address this potential conflict of interest,” Reeves wrote.

Rep. Sam Creekmore, R-New Albany, wrote the bill and said he would seek a solution. He said lawmakers could still add each city’s funding as a line-item in the state budget this year, then reconsider the grant program in 2026. Reeves is expected to call a special session before June 30 because House and Senate leaders ended the regular session without a state budget.

Jim Miller, the executive director for the Mississippi Main Street Association, said the association is “doing everything we can to see those dollars get out the door.”

“The state is just being very careful with the money,” he said.

This story was originally published May 9, 2025 at 10:26 AM.