Sponsors
Introduced July 10, 2025 by Peter Welch · Last progress July 10, 2025
The bill boosts and accelerates federal funding, mitigation support, and administrative assistance to help low-capacity and local jurisdictions recover and become more resilient, but it increases federal spending, implementation complexity, and risks of misuse while creating governance and equity trade-offs in how aid is allocated.
State, tribal, and local governments (including rural communities) gain faster and larger cash flow—higher advance payments (up to 75% for public-assistance projects, increases to 50% advance assistance, and staged management-cost awards)—so they can start recovery and response work sooner.
Low-capacity and other jurisdictions receive more consistent mitigation funding and higher federal cost-shares (including recurring $100M/year authorizations, up to 85% cost-share for low-capacity areas, and mandatory set-asides), enabling more resilience and hazard-mitigation projects that communities otherwise could not afford.
Clarified definitions and eligibility rules plus mandatory intensive training and technical-assistance pilots improve jurisdiction staff understanding and reduce application errors, helping especially low-capacity applicants access FEMA assistance more effectively.
The bill increases federal spending commitments (annual authorizations, mandatory set-asides, pilot program funding and expanded program expenditures), which raises taxpayer costs and long-term budgetary obligations.
Much larger advance payments and higher FEMA administrative-cost caps increase the risk of misuse, fraud, or wasted funds and could divert money away from direct recovery projects if safeguards are inadequate.
New rulemakings, tight implementation deadlines, multiple pilots, and additional reporting requirements impose significant administrative burdens on FEMA and on state/local/tribal governments during transition, which could slow aid delivery or create confusion.
Based on analysis of 8 sections of legislative text.
Reforms Stafford Act programs to fund state hazard mitigation offices, increase advance payments and cost-share flexibility for low-capacity areas, raise FEMA management caps, add training and transparency, and authorize $100M/year starting FY2027.
Creates new and revised authorities for federal disaster assistance under the Stafford Act to speed recovery, strengthen state and tribal mitigation capacity, increase up-front payments, raise FEMA management cost caps, require training and transparency, and authorize recurring funding for state hazard mitigation offices. It increases federal cost-share flexibility for low-capacity jurisdictions, authorizes $100 million annually starting FY2027 for state mitigation offices, and adds reporting, regulatory, and program deadlines for FEMA. Also expands definitions (facilities, agents for local governments), requires relocation funding for repeatedly damaged facilities, defines and requires disclosure when disbursements are "paused," and adds a limited tax deduction for disaster-related travel expenses. The bill aims to reduce administrative barriers for small or low-capacity jurisdictions while increasing federal oversight and program rules to protect funds.