State-Managed Disaster Relief Act

This bill lets states and tribal governments choose a single lump‑sum grant from FEMA for smaller disasters, instead of the usual project‑by‑project reimbursements. The lump sum would be 80% of FEMA’s estimate of what Public Assistance would have cost. If they take the lump sum, they can’t also get regular Public Assistance for that disaster, and the amount usually won’t change later, unless there are unforeseen issues not caused by the applicant.

To use this option, a state or tribe must say so when asking for a disaster declaration, have an approved administrative plan, and work with FEMA to agree on the amount within 90 days after the incident; otherwise, FEMA uses the normal process. Money can be used flexibly for recovery needs and can go to state, tribal, territorial, and local agencies, and eligible private nonprofits, but it must follow environmental, historic preservation, and civil rights rules. States and tribes must send FEMA an annual report of how they spent the funds. This option does not change eligibility for other FEMA disaster programs outside Public Assistance.

• Who is affected: Governors and tribal leaders handling “covered small disasters” (events where estimated Public Assistance damage is at or below 125% of the state’s per‑person indicator).
• What changes: They may request an upfront payment equal to 80% of estimated Public Assistance costs; if they choose this, they cannot also get regular Public Assistance for that disaster; the amount is generally final unless unforeseen circumstances arise; funds must address disaster impacts and follow key laws.
• When: The choice must be indicated with the disaster declaration request; the amount must be agreed within 90 days; an annual spending report to FEMA is required.