Sponsors (2)
The bill trades faster, more flexible state-directed disaster recovery funding and the ability to invest leftover funds in preparedness for increased transparency, against reduced access to FEMA assistance for opted-in disasters, potential funding shortfalls, variable state capacity, and greater fiscal risk to taxpayers.
State and local governments receive a single, upfront block grant covering validated public assistance costs (minus non‑Federal shares), enabling faster and more flexible funding for disaster recovery.
Any remaining grant funds can be used for preparedness and mitigation, allowing states to invest in resilience and reduce future disaster impacts.
Required State and FEMA reporting (initial plan within 120 days, annual reports, and a final report) increases transparency and oversight of recovery spending.
States that opt into the block grant are ineligible for direct FEMA public assistance for that disaster, potentially reducing access to specific operational supports and in‑kind services for impacted communities.
FEMA's initial cost assessment can be adjusted only once, so underestimates may leave states with insufficient funds to complete recovery projects.
Shifting to a block grant concentrates administrative burden and discretion at the state level, creating variability in how effectively funds are used and in outcomes across jurisdictions.
Based on analysis of 2 sections of legislative text.
Creates an optional FEMA-administered block grant for States to receive public assistance after a major disaster instead of direct FEMA public assistance, with reporting and oversight rules.
Creates an optional FEMA-administered alternative block grant that States can choose after a Presidential major disaster declaration to receive public assistance in lump-sum form instead of FEMA’s traditional project-specific public assistance. States apply for the block grant, may request one adjustment if the award is too small, and — if they accept the grant — become ineligible for other direct public assistance for that disaster. The grant amount is based on FEMA’s assessment of public assistance costs, reduced by any non‑Federal shares that would otherwise apply. Recipients must submit an initial recovery plan within 120 days, file annual progress reports until funds are expended, and provide a final report within 180 days after expenditure; FEMA must report to Congress annually on program implementation, participation, costs, timelines, impacts, and recommendations. The program covers public infrastructure assistance (the public assistance categories under current law) and explicitly excludes assistance to individuals and households.
Introduced May 7, 2025 by Jared Moskowitz · Last progress May 7, 2025