HR 1164119th CongressIn Committee

Fair Disaster Assistance Act of 2025

Introduced: Feb 10, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

Fair Disaster Assistance Act of 2025 would require FEMA to adjust its notification process so that applicants who have declared major disasters and own an insurance policy for the damaged property do not receive a denial notice for FEMA assistance while their insurance claim is still pending. In practice, this means FEMA must issue regulations to ensure that a final determination on a disaster-related insurance claim is completed before the applicant can be formally denied assistance under the Stafford Act’s 408 program (which covers individual and household disaster assistance). The aim is to prevent applicants from being told they are ineligible for FEMA help while their insurance claim is unresolved. The bill is limited to regulatory action by FEMA and does not create new eligibility rights or increase funding. It would apply to major disasters declared under the Stafford Act and to applicants who indicate ownership of an insurance policy for the damaged home or facility.

Key Points

1Prohibition on denial notice before insurance determination: FEMA must ensure an applicant with a pending disaster-related insurance claim does not receive a denial notice for FEMA assistance before a final insurance decision is made.
2Regulatory mandate: FEMA must issue regulations as necessary to implement this prohibition.
3Scope of applicability: Applies to applicants for assistance under Section 408 of the Stafford Act (disaster assistance for individuals and households) who have indicated ownership of an insurance policy for the damaged property.
4Trigger and timing: The protection applies until the final determination (approval or denial) of the insurance claim; after that determination, FEMA’s decision on its own assistance would proceed according to existing rules.
5Legislative context: The bill is titled the “Fair Disaster Assistance Act of 2025” and is introduced in the 119th Congress, with related sponsorship noted (Rep. Garcia of California, and co-sponsors Rep. Edwards and Rep. Chu); referred to the Committee on Transportation and Infrastructure.

Impact Areas

Primary group/area affected: Disaster-affected individuals and households with valid or potential insurance claims for damage to homes or facilities, in areas with a major disaster declaration.Secondary group/area affected: Federal Emergency Management Agency operations and regulatory processes; insurers (private or NFIP) in the coordination space; state and local governments coordinating disaster aid.Additional impacts: May affect the timeline and sequencing of assistance decisions, reduce confusion for applicants who are insured, and ensure that FEMA’s assistance decisions are not prematurely rendered in conflict with ongoing insurance determinations. The measure relies on federal regulation rather than a new entitlement or funding program.

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