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Congress·In Committee·about 1 year ago

Congress Would Let States Reuse Leftover Disaster Admin Funds for Other Recovery Projects

Also known as: Disaster Management Costs Modernization Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Mixed Impacts(5)
Tribal Member
Neutral
Housing Assistance
Neutral
Homeowner
Neutral
Renter
Neutral
Federal Employee
Neutral

Key Points

  • Lets states, tribes, and territories keep and reuse leftover disaster grant “management” money instead of losing it when a project closes.
  • The leftover money could be used to build staffing and systems to prepare for, respond to, and recover from future disasters, or to cover management costs on other disaster work.
  • The leftover funds could support work tied to major disasters, emergencies, preparedness steps, and hazard-mitigation projects.
  • Any reused leftover management funds would stay available for up to 5 years after they are made available.
  • Requires the Government Accountability Office to report within 180 days on real disaster management costs and whether the set-aside amounts are appropriate. No new money is added.
InfrastructureNational Security

Milestones

2 milestones2 actions
Feb 27, 2025Senate

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Feb 27, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

As soon as the bill becomes law; applies only to new disaster/emergency declarations after that date (with new appropriations).

New rule starts for disaster declarations made after the law takes effect (and paid with money appropriated after that).

States, Tribes, territories, and local subgrantees could keep and reuse certain leftover management-cost funds on other eligible disaster work, instead of losing those funds at closeout.

In the months after enactment, once FEMA issues guidance and updates grant procedures.

FEMA begins allowing grantees to access “excess funds for management costs” and starts tracking the 5-year availability window.

Grantees could budget multi-year admin support for future disaster projects (like hiring grant managers or improving tracking systems), but they must use the funds within 5 years of being made available.

Within 180 days after the bill becomes law.

GAO delivers a report to Congress on actual FEMA management costs and whether set-asides are appropriate.

Congress and FEMA could use the findings to tighten or expand management-cost rules later, which could change how much admin funding is available during disasters.

Up to 5 years after FEMA makes excess funds available for a specific grant closeout.

Five-year clock runs for each batch of excess management-cost funds made available to a grantee/subgrantee.

Agencies will have a deadline to spend the funds on eligible preparedness, recovery, or mitigation management needs; unused money after 5 years would no longer be available.

Related News

1 article
Environmental and Energy Study Institute (EESI)·5 months ago

Environment & Energy Congressional Round-Up | September 29 - October 3, 2025

Notes House Transportation & Infrastructure action on the Disaster Management Costs Modernization Act (H.R. 744), allowing state/local governments to boost administrative capacity using unused FEMA disaster assistance management funds.

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Source Information

Document Type

Congressional Bill

Official Title

Disaster Management Costs Modernization Act

Bill NumberS 773
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Homeland Security and Governmental Affairs.

Sponsor

Cosponsors

(4)
D: 1R: 3

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.