H.R. 2342: State-Managed Disaster Relief Act

The proposed bill, known as the State-Managed Disaster Relief Act, aims to create new procedures for handling payments related to small disasters that receive federal assistance. Here’s a breakdown of the key components:

Short Title

The bill can be referred to as the "State-Managed Disaster Relief Act."

Alternative Procedures for Covered Small Disasters

The bill introduces an option for state governors or Indian tribal governments to request a lump sum payment from the federal government for certain small disaster events, instead of following the typical assistance protocols under the Public Assistance Program.

Lump Sum Payments

• The lump sum payment is calculated to be approximately 80% of the total estimated costs for assistance that would normally be provided under the Public Assistance Program for the small disaster.
• States or tribal governments that choose this option cannot also receive further assistance under the Public Assistance Program for that specific disaster.
• Payments established cannot be adjusted based on the actual costs incurred afterward, except in special cases due to unforeseen circumstances.

Eligibility and Procedure

• States or Indian tribal governments must have a pre-existing approved administrative plan to qualify for these payments.
• They must indicate their request for this payment option when applying for disaster relief from FEMA (Federal Emergency Management Agency).
• An agreement on the payment amount must be reached within 90 days of the disaster occurrence, or the situation must then revert to the standard Public Assistance Program procedures.

Use of Funds

Funds received from this lump sum payment can be used at the discretion of the state or tribal government to address needs arising from the disaster, as long as they comply with relevant laws and regulations concerning environmental, historical, and civil rights matters.

Reporting Requirements

• States and tribal governments must submit an annual report to FEMA detailing their expenditures related to the covered small disaster.

Definitions

• A "covered small disaster" refers to a federally declared disaster that results in damages estimated to be less than or equal to 125% of the state’s per capita threshold.
• The "Public Assistance Program" includes various types of federal assistance provided for disaster relief as outlined in specific sections of US law.

Compliance

State and tribal governments are responsible for ensuring compliance with all applicable laws when using the funds. The act does not alter eligibility for other disaster assistance programs not categorized as Public Assistance.

Relevant Companies

• None found