State-Managed Disaster Relief Act
The State-Managed Disaster Relief Act would add a new option under the Stafford Act allowing a state or tribal government to bypass the traditional Public Assistance (PA) process for certain “covered small disasters.” When a disaster qualifies, the governor or tribal government could request a single lump-sum payment to cover an estimated amount of PA-eligible costs—equal to 80 percent of what the PA program would have provided—rather than pursuing standard PA assistance. This path is intended to speed relief and give state/tribal authorities more control over how funds are used, subject to specific conditions, timelines, and compliance requirements. A disaster must meet a defined size threshold to be eligible, and use of the funds would be subject to environmental, historic preservation, civil rights, and resiliency rules. Under this approach, if a state chooses the lump-sum option, it cannot later obtain PA assistance for the same disaster, the payment is not adjusted for actual costs (except in limited unforeseen circumstances), and an approved administrative plan must be in place. The state must agree with FEMA on the lump-sum amount within 90 days of the incident or default to the regular PA process, and it must annually report expenses to FEMA. The measure creates a parallel framework for certain disasters while preserving eligibility for other programs underTitle IV or V not involving PA.
Key Points
- 1Creates a new Title VIII for alternative procedures for “covered small disasters,” allowing a lump-sum payment in lieu of PA for affected areas, at the option of the state or tribal government.
- 2Lump-sum amount equals 80 percent of the total estimated PA-eligible cost for the disaster in the jurisdiction, calculated under the existing PA framework (but not subject to later adjustment for actual costs).
- 3If the lump-sum option is chosen, the state/tribal government may not receive PA assistance for that same disaster; funding decisions and use are regulated by the new section.
- 4Timing and qualification requirements:
- 5- The state/tribal government must indicate at the time they request a major disaster declaration that they seek the lump-sum option.
- 6- FEMA and the state/tribal government must reach agreement on the lump-sum amount within 90 days of the incident, or the state proceeds under the PA program.
- 7- The state/tribal government must have an approved administrative plan in place before funds are obligated under this section.
- 8Use of funds: Lump-sum payments can be used for disaster recovery in any manner deemed appropriate by the governor or tribal governing body, provided funds address disaster impacts and go to eligible recipients, while complying with environmental, historic preservation, civil rights laws, and resiliency standards.
- 9Oversight and reporting: States/tribal governments must annually report expenses related to a covered small disaster to FEMA.
- 10Definitions and scope:
- 11- A “covered small disaster” is a major disaster under section 401 or an emergency under section 501 with estimated PA-eligible damage not exceeding 125 percent of the state’s per-capita indicator.
- 12- The term “Public Assistance Program” covers PA programs under sections 403, 406, 407, and 502.
- 13Guardrails: The bill clarifies that nothing in this new approach should affect eligibility for other types of assistance under section 404 or other programs in Title IV or V not part of the Public Assistance Program.