H.R. 3759: Streamlined FEMA Cost Exemption Act

This bill, titled the Streamlined FEMA Cost Exemption Act, aims to modify certain provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act to make it easier for federal assistance to be provided to help state and local governments and entities in times of disaster. Below are the key points of what the bill seeks to accomplish:

1. Shortening Recoupment Period

The bill proposes to change the existing rule that allows the Federal Emergency Management Agency (FEMA) to recoup funds provided for disaster assistance from a period of three years to two years. This means that the timeframe for FEMA to claim back funds provided to states or other entities for assistance will be reduced by one year.

2. Restoration of Waiver Authority

The bill reinstates the President's authority to waive prohibitions on certain types of assistance. Specifically:

• The President may grant waivers when requested by state governors on behalf of affected entities, provided the waiver serves the public interest and avoids waste, fraud, or abuse.
• The waiver request must be decided within 45 days of submission.
• If granted, the President cannot classify a loan as duplicated assistance, as long as all federal assistance is used for losses due to a major disaster.

3. Waiver for Recoupment of Funds

The bill allows the FEMA Administrator to waive the recoupment of funds for projects that exceed the total cost by no more than 5 percent and are otherwise eligible for recoupment. This provides more flexibility for managing cost overruns without penalizing assistance recipients.

4. Acceptable Error Ratio

FEMA is mandated to develop an acceptable error ratio for the allocation of financial assistance. This means that there will be a recognized standard for acceptable discrepancies during the financial aid eligibility process, which helps streamline assistance while ensuring funds are used appropriately.

5. Applicability

The changes proposed by this bill would apply to any major disaster or emergency declared by the President on or after the date of the Act's enactment. This means that the modified processes will only impact future declarations, not those already in place.

Relevant Companies

None found.