Bill Summary
The "Streamlined FEMA Cost Exemption Act" aims to simplify the process of providing public assistance during major disasters by the Federal Emergency Management Agency (FEMA). Key provisions of the legislation include:
1. **Reduction of Recoupment Period**: The time frame for recouping federal assistance from recipients has been shortened from three years to two years.
2. **Waiver Authority Restoration**: The President is granted the authority to waive certain restrictions on federal assistance for states and entities affected by disasters. This waiver can be requested by governors and is intended to ensure assistance is provided efficiently and effectively, considering factors like cost-effectiveness and public interest.
3. **Recoupment Waivers**: FEMA can waive the requirement to recoup funds for projects that exceed their budget by up to 5%, simplifying funding management for disaster recovery projects.
4. **Establishment of Acceptable Error Ratio**: FEMA is tasked with developing an "acceptable error ratio" for financial assistance allocations, allowing for some flexibility in funding decisions during the eligibility determination process.
Overall, the Act seeks to enhance the efficiency and responsiveness of federal disaster assistance, reducing bureaucratic hurdles and ensuring timely support to communities in need.
Possible Impacts
The **Streamlined FEMA Cost Exemption Act** could affect people in several ways. Here are three examples:
1. **Improved Access to Financial Assistance**: By reducing the recoupment period for certain assistance from three years to two years, individuals and communities that have suffered losses from disasters may receive financial aid more quickly. This expedited access can help them recover and rebuild sooner, alleviating financial stress and supporting their return to normalcy.
2. **Increased Flexibility for Waivers**: The Act allows the President to waive prohibitions on assistance duplication upon a Governor's request, which means that affected individuals and businesses may receive multiple forms of aid without the risk of being penalized for duplication. This flexibility could enable more comprehensive support for recovery, allowing people to address various needs more effectively.
3. **Lower Risk of Financial Penalties**: The provision that allows the Federal Emergency Management Agency (FEMA) to waive recoupment of funds that exceed project costs by up to 5% can protect individuals and organizations from being penalized for minor budget overruns. This may encourage more entities to apply for federal assistance for disaster recovery projects, knowing they won't face stringent penalties for slight miscalculations in funding.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3759 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3759
To provide for streamlined cost exemptions for public assistance
projects by the Federal Emergency Management Agency, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 5, 2025
Mr. Dunn of Florida introduced the following bill; which was referred
to the Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
To provide for streamlined cost exemptions for public assistance
projects by the Federal Emergency Management Agency, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Streamlined FEMA Cost Exemption
Act''.
SEC. 2. RECOUPMENT OF CERTAIN ASSISTANCE PROHIBITED.
Section 705(a)(1) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5205(a)(1)) is amended by striking
``3 years'' and inserting ``2 years''.
SEC. 3. RESTORATION OF WAIVER AUTHORITY.
(a) Authority.--Section 312(b) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5155(b)) is amended by
adding at the end the following:
``(4) Waiver of general prohibition.--
``(A) In general.--The President may waive the
general prohibition provided in subsection (a) upon
request of a Governor on behalf of the State or on
behalf of a person, business concern, or any other
entity suffering losses as a result of a major disaster
or emergency, if the President finds such waiver is in
the public interest and will not result in waste,
fraud, or abuse. In making this decision, the President
may consider the following:
``(i) The recommendations of the
Administrator of the Federal Emergency
Management Agency made in consultation with the
Federal agency or agencies administering the
duplicative program.
``(ii) If a waiver is granted, the
assistance to be funded is cost effective.
``(iii) Equity and good conscience.
``(iv) Other matters of public policy
considered appropriate by the President.
``(B) Grant or denial of waiver.--A request under
subparagraph (A) shall be granted or denied not later
than 45 days after submission of such request.
``(C) Prohibition on determination that loan is a
duplication.--Notwithstanding subsection (c), in
carrying out subparagraph (A), the President may not
determine that a loan is a duplication of assistance,
provided that all Federal assistance is used toward a
loss suffered as a result of the major disaster or
emergency.''.
(b) Limitation.--This subsection, including the amendment made by
subsection (a), shall not be construed to apply to section 406 or 408
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5172, 5174).
(c) Applicability.--The amendment made by subsection (a) shall
apply to any major disaster or emergency declared by the President
under section 401 or 501, respectively, of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170, 5191) on
or after the date of enactment of this Act.
SEC. 4. WAIVER OF CERTAIN RECOUPMENT OF FUNDS.
Title VII of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) is amended by adding at the end
the following:
``SEC. 707. WAIVER OF CERTAIN RECOUPMENT OF FUNDS.
``(a) In General.--Notwithstanding subchapter IV of chapter 33 of
title 31, United States Code, the Administrator may waive recoupment of
funds provided for a covered project that--
``(1) are otherwise eligible to be recouped by a provision
of this Act; and
``(2) that exceed the total cost of a covered project by
not greater than 5 percent.
``(b) Covered Project .--In this section, the term `covered
project' means a project for which financial assistance was provided
under section 403, 406, 407, 428, or 502.''.
SEC. 5. ACCEPTABLE ERROR RATIO.
Title VII of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) is further amended by adding at
the end the following:
``SEC. 708. ACCEPTABLE ERROR RATIO.
``(a) Establishment.--Notwithstanding subchapter IV of chapter 33
of title 31, United States Code, the Administrator of the Federal
Emergency Management Agency shall develop and establish an acceptable
error ratio for allocations during eligibility negotiations relating to
financial assistance provided under this Act.
``(b) Use of Funds.--The Administrator shall ensure that any amount
provided under this Act that the Administrator considers to be within
the error ratio established under subsection (a) is used for an
eligible purpose for which the assistance is provided.''.
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