Sponsors (19)
The bill helps local governments and electric cooperatives recover from disasters by reimbursing past interest and speeding access to funds, but it creates federal fiscal exposure and leaves recipients reliant on future appropriations while adding compliance burdens.
Local governments, electric cooperatives, and utilities receive reimbursement of up to nine years of disaster-related loan interest, reducing their net recovery costs and improving financial capacity for rebuilding.
Electric cooperatives and rural utility customers are less likely to face service interruptions because reimbursing interest helps stabilize cooperative finances and lowers the risk of operational or rate pressures after disasters.
Local governments can access reimbursements faster for pending projects due to a required 30-day publication and 60-day application window, which could accelerate recovery and reconstruction timelines.
Taxpayers and the Treasury may incur new or additional costs because reimbursements depend on future appropriations, exposing federal finances to increased outlays.
If Congress does not appropriate enough funds, eligible past interest claims from local governments and cooperatives could go unpaid, creating budget uncertainty and undermining recovery planning for those entities.
Smaller lenders, local governments, and borrowers may face additional paperwork and compliance burdens to document qualifying loans and interest, which could delay reimbursement and slow recovery projects.
Based on analysis of 2 sections of legislative text.
Requires FEMA to reimburse local governments and electric cooperatives for eligible loan interest tied to Stafford Act projects, including interest paid up to nine years before enactment, subject to appropriations.
Introduced April 10, 2025 by Neal Patrick Dunn · Last progress April 10, 2025
Requires FEMA to reimburse local governments and electric cooperatives for eligible interest paid on loans used to fund Stafford Act disaster recovery projects. Reimbursement covers interest incurred up to nine years before enactment, pays the lesser of actual interest paid or interest computed at the published prime rate, and is available only from funds appropriated on or after enactment. FEMA must publish procedures quickly for pending projects, States must apply within a short window, and FEMA must make reimbursements within one year of enactment.