H.R. 1164: Fair Disaster Assistance Act of 2025

This bill, known as the Fair Disaster Assistance Act of 2025, aims to amend the way the Federal Emergency Management Agency (FEMA) handles assistance applications from individuals who have been impacted by major disasters. Here are the key points of the bill:

Purpose of the Bill

The primary objective of the bill is to ensure that individuals applying for disaster assistance do not receive a denial notice from FEMA if they have a pending insurance claim related to disaster-related losses. This change intends to provide applicants with a clearer and fairer process following a major disaster declaration.

Specific Provisions

• Prohibition on Early Denial Notices: The bill explicitly prohibits FEMA from sending out notices indicating a denial of assistance to applicants who have reported that they own an insurance policy for property that has been damaged in a major disaster, as long as their insurance claims are still being processed.
• Impact on Claim Processing: By waiting for the outcome of the insurance claim before issuing a denial for federal assistance, the bill aims to prevent confusion and financial hardship for applicants who may rely on both insurance and FEMA assistance for recovery.
• Regulatory Authority: The bill grants the FEMA Administrator the authority to issue any necessary regulations to implement these changes effectively.

Context of the Legislation

This legislation is positioned within the framework of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which provides federal assistance during major disasters. The emphasis on not sending denial notices prematurely is intended to improve the responsiveness and fairness of disaster assistance programs.

Potential Impact

Overall, the Fair Disaster Assistance Act of 2025 seeks to improve the experience of disaster survivors applying for assistance by ensuring that insurance claims are resolved before any federal assistance denials are communicated. This is intended to provide a more equitable process for those affected by disasters, helping them to navigate the often complex system of recovery more effectively.

Relevant Companies

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