Disaster Management Costs Modernization Act
The Disaster Management Costs Modernization Act would change how the federal government handles “excess funds for management costs” tied to disaster recovery grants under the Stafford Act. Specifically, it creates a new authority to reallocate leftover management-cost funds from one disaster recovery project to other disaster-related activities, including capacity building, preparedness, mitigation, and ongoing management costs for major disasters or emergencies. The goal is to incentivize States, Indian Tribes, and Territories to close out disaster recovery projects more efficiently by allowing unused management funds to be used for other eligible disaster recovery activities. The bill also requires a Government Accountability Office (GAO) study within 180 days to review actual management costs and to report on cost levels and use across recent disasters. Importantly, the bill does not authorize new federal funding; any reallocation must come from existing excess management-cost funds. It applies to new grants for major disasters or emergencies declared after enactment and funded with amounts appropriated after enactment, and funds reallocated may be available for up to five years.
Key Points
- 1Creates a new authority (subsection (c)) to use “excess funds for management costs” from disaster recovery grants for other disaster-related activities, including capacity building, and management costs tied to major disasters, emergencies, preparedness measures, or mitigation activities.
- 2Defines “excess funds for management costs” as the difference between the authorized management costs and the actual management-cost funding expended by the grantee at grant closeout.
- 3Allows the President to make excess management-cost funds available to grantees or subgrantees receiving federal disaster assistance (sections 403, 404, 406, 407, or 502) for specified uses, with the funds remaining available for up to five years after being made available.
- 4Eligible uses include activities to prepare for, recover from, or mitigate impacts of major disasters or emergencies, and for management costs related to a major disaster, emergency, disaster preparedness measures, or mitigation activities under specified sections.
- 5Applies to new grant awards for major disasters or emergencies declared after enactment and funded with appropriations after enactment.
- 6Requires a GAO study within 180 days of enactment to review actual management costs and to provide data on costs and use for disasters in the five years prior to the report; assesses whether the current set-aside for management costs is appropriate.
- 7No new funds are authorized; the change relies on reallocating existing excess management-cost funds.