H.R. 3759 — Streamlined FEMA Cost Exemption Act

This section restores presidential authority to waive the general prohibition on duplication of benefits under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) (42 U.S.C. 5155), for major disasters or emergencies declared on or after enactment. (As background, the prohibition bars federal disaster assistance for any part of a loss compensated by insurance or other federal programs.) The waiver may be granted upon request of a governor or affected party if the President determines it serves the public interest without waste, fraud, or abuse—considering FEMA Administrator recommendations (in consultation with relevant agencies), cost-effectiveness, equity and good conscience, and other public policy factors—with decisions required within 45 days; loans cannot be deemed duplicative if federal assistance is used for disaster-related losses. This authority excludes Stafford Act sections 406 (public assistance for facilities) and 408 (essential assistance to individuals and households).

This section authorizes the FEMA Administrator to waive recoupment of excess funds—provided under Stafford Act sections 403 (essential assistance), 406 (repair, restoration, and replacement of damaged facilities), 407 (debris removal), 428 (simplified procedures), or 502 (federal assistance to individuals and households)—if the excess does not exceed 5% of the total project cost.

This section establishes an acceptable error ratio for allocations during eligibility negotiations relating to financial assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, notwithstanding Single Audit Act requirements (31 U.S.C. ch. 33 subch. IV). It further requires the FEMA Administrator to redirect any such amounts within that ratio to eligible purposes for which the assistance is provided.