Reforming Disaster Recovery Act

Key Points

• The bill creates a permanent Long-Term Disaster Recovery Fund so the federal government can send Community Development Block Grant (CDBG) disaster recovery money faster after catastrophic events, without waiting for Congress to approve new spending each time.
• At least 70% of each grant must go toward activities that help low- and moderate-income people, unless HUD finds a compelling reason to lower that share and issues a waiver. This ensures the neediest families get priority in rebuilding.
• HUD must decide within 90 days of a presidential disaster declaration whether the disaster qualifies as catastrophic, and if funds are available, must immediately announce how much a community will receive.
• A new Office of Disaster Management and Resiliency is established inside HUD to coordinate disaster preparedness and recovery across the department and with FEMA, the Small Business Administration, and local governments.
• Up to 30% of the estimated unmet needs can go toward mitigation activities like stronger construction standards and reducing repetitive property losses in flood zones, wildfire areas, and other hazard-prone locations.
• HUD must issue proposed rules within 6 months of enactment and final rules within 1 year, creating a clear timeline for the new program to become operational.