Disaster Resiliency and Coverage Act of 2025
The Disaster Resiliency and Coverage Act of 2025 would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to create an “Individual Household Disaster Mitigation Program.” Under this program, the President would provide grants to states and federally recognized tribal governments to fund qualifying pre-disaster mitigation work on individual residences in areas at risk of a major disaster. The bill lays out how eligible disaster areas are identified, what activities qualify for funding, and limits on funds per household, along with a requirement for state/tribal plans that consider insurance availability and affordability. It also adds a tax framework: amounts received under the program would be tax-free, and a new 30% disaster mitigation expenditures credit would be available for qualifying homeowner or business-related mitigation costs. The bill also creates a Hazard Mitigation Advisory Committee to guide standards and eligible activities and includes several safeguards to avoid preemption of state insurance regulation. In short, this bill aims to reduce future disaster losses by supporting homeowners directly with mitigation upgrades (like wind, flood, or wildfire protection) funded through federal grants and incentivized for private investment through tax relief. It pairs a federal grant program with a coordinated insurance and tax policy approach to encourage broader adoption of resilience measures in high-risk areas.
Key Points
- 1Establishes an Individual Household Disaster Mitigation Program that provides grants to States and Indian tribal governments to fund qualifying pre-disaster mitigation activities for at-risk residential households.
- 2Grants are limited to high-risk eligible disaster areas, with a plan requiring insurance availability/affordability analysis, a cost cap of up to $10,000 per household (adjusted for CPI), and criteria that include household income and Community Disaster Resilience Zone status.
- 3Qualifying mitigation activities cover a broad set of measures (roof, walls, flood and wind protections, fire and ignition-resistant features, elevation, storm shelters, generators, water and gas shutoff valves, vegetation management, and other hazard mitigation measures).
- 4A Hazard Mitigation Advisory Committee (50 members) would advise the President on research, standards, and additions to eligible activities, drawing from insurance, consumer, emergency response, building, academic, and environmental groups.
- 5Tax provisions: (1) grants under the program would be excluded from gross income for federal tax purposes; (2) a new 30% personal/business tax credit for qualifying disaster mitigation expenditures (Section 28) to be claimed against tax, with rules for coordination with other credits and for reimbursements; (3) exclusions also apply to state-based catastrophe loss mitigation payments and related provisions, with effective dates after 2025.