Disaster Management Costs Modernization Act

This bill lets states, Tribal governments, and territories use leftover administrative funds from a closed disaster grant to help manage other disaster work. It defines these “excess” funds as the difference between what was allowed for management costs and what was actually spent when the grant closes. The money can support management of other disasters or emergencies, preparedness work, and risk‑reduction projects, which is meant to encourage closing out projects on time .

These leftover funds can stay available for up to five years. The changes apply only to disasters or emergencies declared after the law takes effect and funded with money appropriated after that date. A federal watchdog must report within 6 months on whether the set‑aside for management costs is appropriate. The bill does not authorize any new spending; it repurposes existing funds .

• Who is affected: States, Tribal governments, territories, and other grant recipients that get federal disaster aid.
• What changes: Leftover management funds from one closed project can be used to manage other disaster, emergency, preparedness, or mitigation work; funds remain available for 5 years; no new money is added .
• When: For disasters or emergencies declared and funded after the law takes effect; a report to Congress is due within 180 days .