Disaster Management Costs Modernization Act

This bill lets States, Tribal Nations, and Territories reuse leftover money from disaster grants that was set aside for “management costs” (the admin work of running projects). Instead of sending the unused money back, they can use it to strengthen their ability to prepare for, recover from, and reduce the impact of disasters, or to manage other disaster projects. The money can be kept and used for up to five years once it’s made available. The goal is to help close out projects faster and keep recovery moving. It does not add new spending.

A government report is also required within 180 days to check whether the amount set aside for management costs is appropriate and to review how these costs were used over the past five years.

Key points

• Who is affected: States, Tribal Nations, and Territories that receive federal disaster grants; their local subgrantees may also benefit.
• What changes: Leftover admin funds from one disaster grant can be used for other disaster management work and for building capacity to prepare, recover, and mitigate. Funds remain available for five years. No new money is authorized.
• When: Applies to disaster declarations made on or after the date the bill becomes law, using money appropriated on or after that date.