S. 2247 — Disaster Assistance Improvement and Decentralization Act

This section establishes a program under the Stafford Act to provide financial assistance to states and Indian tribal governments for funding their state hazard mitigation offices, defined as the office or representative serving as the primary point of contact with FEMA, other federal agencies, and local governments for mitigation planning and implementation. (As background, hazard mitigation under the Stafford Act reduces losses from future disasters through planning, projects, and capability-building.) The President may award such assistance, with each recipient guaranteed not less than 1% of the total awarded in a fiscal year and the remainder allocated proportional to population; the program authorizes $100 million for FY2027 and each fiscal year thereafter.

This section authorizes the President to increase the federal cost share for hazard mitigation grants under the Hazard Mitigation Grant Program (HMGP) to up to 85 percent (from 75 percent) for low-capacity jurisdictions (as defined in section 2 of the Disaster Assistance Improvement and Decentralization Act). The HMGP provides grants to state, local, and tribal governments for cost-effective measures (e.g., property acquisition, elevation, or floodwalls) that reduce future disaster risks in areas affected by a major disaster or certain fires.

This section revises the Hazard Mitigation Grant Program (HMGP), which provides federal grants to states, tribes, and local governments for cost-effective measures to reduce future disaster risks. (1) It allows a state or Indian tribal government receiving multiple concurrent HMGP contributions to combine those amounts into a single fund for management costs and audit purposes and to apply any project completion, auditing, or reporting deadline from the most recent contribution to all concurrent contributions. (2) It increases the maximum advance assistance available prior to approval of a state's mitigation plan to 50 percent (from 25 percent) of estimated eligible costs.

This section directs the FEMA Administrator, in consultation with state hazard mitigation offices, state, local, Tribal, and territorial governments, and other stakeholders, to submit to the appropriate congressional committees not later than two years after enactment a report on reforms to reduce administrative burdens and enhance assistance delivery under the Hazard Mitigation Grant Program (42 U.S.C. 5170c). (As background, the program authorizes the President to contribute up to 75% of costs for cost-effective hazard mitigation measures—e.g., property acquisition and flood-related relocation—that reduce future disaster risks in major disaster or fire areas, subject to caps of 15% (for estimated grants up to $2 billion), 10% ($2-$10 billion), or 7.5% ($10-$35.333 billion).)

This section revises funding requirements for the National Public Infrastructure Predisaster Mitigation Fund under the predisaster hazard mitigation program (i.e., technical and financial assistance to states and local governments for cost-effective measures to reduce disaster injuries, loss of life, and property damage, including to critical infrastructure) by (1) requiring the President to set aside amounts for the fund ("shall set aside," previously "may set aside"); (2) prohibiting use of set-aside amounts for any purpose other than those specified for the fund; and (3) requiring obligation of at least the lesser of 10% or $500 million (as adjusted annually for inflation using the Consumer Price Index for All Urban Consumers) of set-aside amounts each fiscal year.

This section directs the Administrator to (1) issue a final rulemaking implementing this title and its amendments not later than 540 days after enactment; (2) issue interim guidance for the same purpose not later than 60 days after enactment, expiring upon the earlier of 540 days after enactment or issuance of the final rulemaking; (3) issue any necessary guidance related to the final rulemaking not later than 90 days after its issuance; and (4) submit to the appropriate congressional committees, not later than two years after enactment, a report summarizing the rulemaking and guidance issued under (1) and (3).

This section increases the maximum management cost reimbursement rate for FEMA's Public Assistance program (i.e., grants under Stafford Act sections 406, 407, 502, and 503 for debris removal, protective measures, and repair or replacement of disaster-damaged public facilities and infrastructure) to 15% of the total award amount (from 12%), of which up to 10% (from 7%) may be used by the grantee and 5% by the subgrantee. (Thus, the rates now align with those for the hazard mitigation grant program.)

This section adds to Title III of the Robert T. Stafford Disaster Relief and Emergency Assistance Act two new sections. **Sec. 328. Training.** Requires the President, not later than 30 days after declaring a major disaster under section 401 and upon request by the jurisdiction's Governor or Chief Executive, to conduct intensive training for the jurisdiction and its agencies on disaster assistance processes (from declaration through disbursement), available awards, eligibility and documentation requirements, FEMA acronyms and terminology, and other necessary concepts. The training supplements any local training or briefing and may be offered virtually when practicable. **Sec. 329. Advance assistance.** Defines public assistance as aid under Stafford Act sections 403 (essential assistance), 406 (repair, restoration, and replacement of damaged facilities), 407 (debris removal), and 502 (federal emergency assistance). Authorizes the President to advance up to 75% of estimated project costs to public assistance grantees or subgrantees before costs are incurred and requires advancing 25-75% upon request if preliminary damage assessments equal or exceed thresholds relative to the grantee's prior fiscal year annual budget based on jurisdiction population—not less than 1 times the budget for populations of 2,000 or fewer, 2 times for 2,001-3,500, and 3 times for 3,501-5,000. Grantees or subgrantees receiving advances must provide methodologies to safeguard against waste, fraud, and abuse.

This section establishes a pilot program, to be initiated by the FEMA Administrator not later than one year after enactment, under which FEMA may provide technical assistance—upon request—to states or Indian tribal governments for low-capacity jurisdictions navigating the public assistance process under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (i.e., grants for repairing or replacing eligible disaster-damaged public facilities and infrastructure). Assistance may include (1) assigning FEMA personnel for project scoping, damage documentation, training on Stafford Act programs, and related tasks; or (2) funding to hire state employees or contractors for project scoping, damage documentation, grant applications, and related tasks. In selecting recipients, FEMA must prioritize based on (1) National Risk Index hazard risk, (2) state or tribal disaster management capacity (i.e., personnel and resources), (3) nongovernmental response capacity, and (4) other relevant factors; the program terminates five years after establishment. This section further directs the FEMA Administrator to submit annual reports to congressional committees—one year after establishment and annually thereafter through program termination—listing recipients and detailing assistance provided; requires a Government Accountability Office audit and effectiveness study three years after establishment, with recommendations on extension or expansion; and authorizes $500 million annually for FY2027 through FY2031.

This section revises simplified procedures under the Stafford Act for small disaster assistance projects—those with a federal cost estimate below the greater of $1,000,000 (adjusted for CPI for All Urban Consumers, including from October 10, 2022, to enactment of the Disaster Assistance Improvement and Decentralization Act and annually thereafter) or an administrator-set threshold under subsection (b). For eligible projects under sections 403 (emergency protection), 406 (repair/restore/replace public and private nonprofit facilities), 407 (debris removal), or 502 (federal emergency assistance), it allows the President, on application by a state or local government that performs the work, to base FEMA reimbursement on actual costs incurred rather than solely the federal estimate (previously limited to the federal estimate). Reimbursement is capped at 150 percent of the federal cost estimate, except where costs exceed the estimate due to poor management, fraud, or waste. (Thus, the revision incentivizes state and local governments to perform small projects themselves for potentially faster recovery while limiting federal exposure to overruns.)

This section directs the FEMA Administrator to establish, not later than one year after enactment, a five-year pilot program allowing selection of high-capacity jurisdictions to use simplified procedures under section 422(a) of the Stafford Act for Public Assistance projects under sections 403 (essential assistance), 406 (repair, restoration, and replacement), 407 (debris removal), or 502 (federal emergency assistance) costing less than $10 million (adjusted annually for CPI changes), notwithstanding the amount specified in section 422(a). (As background, section 422(a) authorizes expedited reimbursement procedures for smaller-scale disaster recovery projects.) Selected jurisdictions must provide safeguards against waste, fraud, and abuse; the Administrator must submit annual reports to congressional committees beginning one year after establishment; and the GAO must audit the program after three years and recommend whether to extend or expand it.

This section directs the Administrator to (1) issue interim guidance implementing this title and its amendments not later than 60 days after enactment, which expires upon the earlier of 540 days after enactment or issuance of final rulemaking; (2) issue final rulemaking implementing this title and its amendments not later than 540 days after enactment; (3) issue any necessary guidance related to the final rulemaking not later than 90 days after issuing the final rulemaking; and (4) submit to the appropriate congressional committees, not later than two years after enactment, a report summarizing the rulemaking and guidance issued under clauses (2) and (3).

This section defines a "facility" as one providing critical services (i.e., power; water, including irrigation; sewer; wastewater treatment; communications; medical care; fire response; or other emergency rescue services) and requires the FEMA Administrator to approve funding for restoration at a new location under 44 C.F.R. 206.226(g)—which allows alternate-site restoration of destroyed facilities—if the facility sustains (1) at least 30% damage on at least two occasions or (2) at least 50% damage, as requested by the state or Indian tribal government with jurisdiction.

This section expands the definition of local government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act to include any State or political subdivision of a State authorized by a local government to submit an application under the Act and serve as an agent on behalf of the local government. (Thus, facilitating federal disaster assistance requests by allowing states or subdivisions to apply for local governments when authorized.)

This section establishes a requirement for the President to publicly disclose specified information within five business days after a prolonged pause—defined as a cumulative 26 business days in a fiscal year—in disbursing appropriated funds under the Robert T. Stafford Disaster Relief and Emergency Assistance Act to states and Indian tribal governments. The required information includes (1) the rationale for the pause, (2) its expected duration, (3) the legal authority for the pause, and (4) resources to check its status.

This section expands the business travel expense deduction under IRC §162(a) to include amounts paid or incurred by individuals certified by the FEMA Administrator as traveling on behalf of the United States in temporary duty status to respond to a federally declared disaster (as defined in IRC §165(i)(5)(A)), even if away from home for more than one year. (As background, current law generally disallows such deductions for business travel assignments expected to exceed one year.) The change applies to taxable years beginning after enactment.

This section authorizes the Administrator of the Federal Emergency Management Agency (FEMA) to waive dual compensation restrictions under subsections (a) through (h) of 5 U.S.C. § 8344 or subsections (a) through (e) of § 8468—generally prohibiting federal retirees from receiving both full annuity payments and salary upon reemployment—on a case-by-case basis for (1) FEMA employees in positions with exceptional difficulty in recruiting or retaining qualified individuals or (2) temporary FEMA employees, but only if necessary due to an emergency involving a direct threat to life or property or other unusual circumstances.

This section establishes a process under FEMA's management cost provisions (42 U.S.C. 5165b) to make available "excess funds for management costs"—defined as the difference between authorized management cost amounts (i.e., fixed percentages of up to 15% for hazard mitigation grants under section 404 and up to 12% for public assistance grants under sections 403, 406, 407, and 502) and actual expenditures at grant closeout—to grantees and subgrantees for (1) capacity-building activities to prepare for, recover from, or mitigate major disasters or emergencies; or (2) management costs associated with any major disaster, emergency, disaster preparedness measure, or mitigation activity or measure under sections 203, 204, 205, or 404. (As background, management costs reimburse grantees and subgrantees for direct and indirect administrative expenses on Stafford Act disaster grants, with fixed rates of up to 10% for grantees and 5% for subgrantees under hazard mitigation and up to 7% for grantees and 5% for subgrantees under public assistance.) The amendments apply to grants for major disasters or emergencies declared on or after the date of enactment.

This section establishes incremental awards of management costs (i.e., up to 15% for hazard mitigation grants or 12% for public assistance grants, per existing rates) to grantees under specified Stafford Act programs—including essential assistance (sec. 403), hazard mitigation (sec. 404), public facility repairs (sec. 406), debris removal (sec. 407), and fire suppression assistance (sec. 502)—as follows: (1) 50% by 30 days after major disaster declaration under sec. 401; (2) 75% by 180 days after such declaration; and (3) 100% by one year after such declaration. (Thus, these state and local grantees receive partial upfront reimbursement for administrative costs of managing FEMA disaster grants.)

This section directs the Comptroller General of the United States to submit to the appropriate congressional committees, not later than two years after enactment, a report that (1) reviews regulations promulgated by the Administrator and (2) recommends modifying or eliminating regulations that are redundant or overly burdensome, particularly for low-capacity jurisdictions.

This section requires the FEMA Administrator to submit to the appropriate congressional committees, not later than one year after the date of enactment and annually thereafter, a report on the exercise of advance assistance authority under (1) section 404(e) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c(e)), part of the Hazard Mitigation Grant Program; and (2) section 329 of such Act, as added by this Act. The report must include a comprehensive account of the frequency and extent of invocation of such authority.