U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

59–010 

" ! SENATE 

114TH CONGRESS

1st Session 

REPORT

2015

114–173 

Calendar No. 313 

DIRECTING DOLLARS TO DISASTER RELIEF 

ACT OF 2015 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 2109 

TO DIRECT THE ADMINISTRATOR OF THE FEDERAL EMERGENCY 

MANAGEMENT AGENCY TO DEVELOP AN INTEGRATED PLAN TO 

REDUCE ADMINISTRATIVE COSTS UNDER THE ROBERT T. 

STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT, 

AND FOR OTHER PURPOSES 

DECEMBER 7, 2015.—Ordered to be printed 


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(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

KELLY AYOTTE, New Hampshire 

JONI ERNST, Iowa 

BEN SASSE, Nebraska 

THOMAS R. CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

TAMMY BALDWIN, Wisconsin 

HEIDI HEITKAMP, North Dakota 

CORY A. BOOKER, New Jersey 

GARY C. PETERS, Michigan 

KEITH B. ASHDOWN, Staff Director 

CHRISTOPHER R. HIXON, Chief Counsel 

PATRICK J. BAILEY, Chief Counsel for Governmental Affairs 

GABRIELLE D’ADAMO SINGER, Deputy Chief Counsel for Governmental Affairs 

DREW C. BANEY, Professional Staff Member 

GABRIELLE A. BATKIN, Minority Staff Director 

JOHN P. KILVINGTON, Minority Deputy Staff Director 

MARY BETH SCHULTZ, Minority Chief Counsel 

BRIAN B. TURBYFILL, Minority Senior Professional Staff Member 

LAURA W. KILBRIDE, Chief Clerk 


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Calendar No. 313 

114TH CONGRESS SENATE REPORT " ! 1st Session 114–173 

DIRECTING DOLLARS TO DISASTER RELIEF ACT OF 2015 

DECEMBER 7, 2015.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 2109] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 2109) to direct the Administrator 

of the Federal Emergency Management Agency to develop an integrated plan to reduce administrative costs under the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act, and for 

other purposes, having considered the same, reports favorably 

thereon with an amendment and recommends that the bill, as 

amended, do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 2 

III. Legislative History ......................................................................................... 3 

IV. Section-by-Section Analysis .......................................................................... 4 

V. Evaluation of Regulatory Impact .................................................................. 5 

VI. Congressional Budget Office Cost Estimate ................................................ 5 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 5 

I. PURPOSE AND SUMMARY

S. 2109, the Directing Dollars to Disaster Relief Act of 2015, 

seeks to control and reduce rising administrative costs for major 

disasters by requiring the Administrator of the Federal Emergency 

Management Agency (FEMA) to develop and implement a plan to 

control and reduce its internal administrative costs for major disasters. To ensure the plan is effective, the bill requires FEMA to review progress toward agency established goals, and to report its 

findings for each fiscal year (FY) to Congress. 


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1 U.S. GOV’T ACCOUNTABILITY OFFICE, GAO–15–65, FEDERAL EMERGENCY MANAGEMENT AGENCY: OPPORTUNITIES EXIST TO STRENGTHEN OVERSIGHT OF ADMINISTRATIVE COSTS FOR MAJOR

DISASTERS 12 (2014), available at http://www.gao.gov/assets/670/667606.pdf (hereinafter, 2014 

GAO REPORT). 2 2014 GAO REPORT at 8. 3 U.S. GOV’T ACCOUNTABILITY OFFICE, GAO–12–838, FEDERAL DISASTER ASSISTANCE: IMPROVED CRITERIA NEEDED TO ASSESS A JURISDICTION’S CAPABILITY TO RESPOND AND RECOVER

ON ITS OWN 41 (2012), available at http://www.gao.gov/assets/650/648162.pdf (hereinafter, 

2012 GAO REPORT). 4FEDERAL EMERGENCY MANAGEMENT AGENCY, ACHIEVING EFFICIENT JFO OPERATIONS: A 

GUIDE FOR MANAGING STAFFING LEVELS AND ADMINISTRATIVE COSTS 1 (2010) (on file with Committee staff). 5 Id. at 2. 6 Id. 

7 2012 GAO REPORT at 46. 8 Id. at 47. 9 Id. 

10 Id. at 51. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

FEMA is the primary provider of Federal assistance in response 

to major disasters. Through funding from the Disaster Relief Fund 

(DRF), FEMA administers major disaster recovery and relief funds 

through grant programs. From FY 2004 through FY 2013, FEMA 

administered $95.2 billion for 650 declared major disasters.1

Of the $95.2 billion spent on disaster relief between FY 2004 and 

FY 2013, approximately $12.7 billion was used to cover FEMA’s administrative costs that support the delivery of disaster assistance.2

Recent Government Accountability Office (GAO) reports have documented the increase of administrative costs for major disaster assistance in the last two decades. While the growth in administrative costs is in part due to the increased number of disaster declarations within the same time period, average administrative cost 

percentages have risen as well. From FY 1989 to FY 2011, the percentage of disaster assistance that was spent on administrative 

costs doubled, increasing from 9 percent to 18 percent.3

For its part, FEMA has recognized and initiated efforts to address the problem of rising administrative costs. In a November 

2010 memo, FEMA recognized the need to control spiraling administrative costs and staffing levels.4 The 2010 internal memo created 

best practices guidelines for management to follow and set broad 

targets for administrative cost percentages.5 Prior to the guidelines 

released in the memo, FEMA had provided limited guidance to 

managers on how to control administrative costs.6

However, a September 2012 GAO report found that FEMA did 

not strictly adhere to the guidelines of the 2010 memo, electing instead to treat them as aspirational for mangers to use to achieve 

efficiency in the field.7 While acknowledging the complexities that 

can affect administrative costs for disasters, GAO further found 

that FEMA did not create a way to track progress against the established percentage ranges.8 Without formal goals and ways to 

track progress towards those targets, GAO concluded that measuring success would be difficult.9

Accordingly, GAO recommended that FEMA implement goals for 

administrative cost percentages and monitor performance to 

achieve these goals.10 In response to GAO’s recommendations, 

FEMA released a Strategic Plan in July 2014 that included setting 


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11FEDERAL EMERGENCY MANAGEMENT AGENCY, FEMA STRATEGIC PLAN: 2014–2018 34 (2014) 

available at https://www.fema.gov/media-library/assets/documents/96981. 12 2014 GAO REPORT. The review was conducted at the request of then-Committee Members 

Senators Tom Coburn and Mark Begich, along with Congressman Michael McCaul and Congresswoman Susan Brooks. 13 Id. at 22. 14 Id. at 14–15. 15 Id. at Highlights Page. 16 Id. at 22. 17 Id. at 23. 18 Id. at Highlights Page. 19Letter from Hon. Ron Johnson, Chairman, Comm. on Homeland Security & Governmental 

Affairs & Hon. Tom Carper, Ranking Member. Comm. on Homeland Security & Governmental 

Affairs, to W. Craig Fugate, Federal Emergency Management Agency Administrator (Oct. 5, 

2015) (on file with Committee Staff). 

a goal of reducing annual administrative costs by five percent and 

using data analytics to track performance against this goal.11

GAO issued a follow-up report on FEMA’s administrative costs 

for major disasters in December 2014.12 The review determined the 

percentage of administrative costs had not significantly decreased 

since November 2010; 13 rather, it remained steady above 18 percent.14 GAO noted that although FEMA was engaging in efforts to 

reduce administrative costs, including its 2014 Strategic Plan 

goals, the agency: ‘‘does not require [its] targets be met;’’ 15 ‘‘do[es] 

not have an integrated plan for how they will better control and 

reduce administrative costs for major disasters, and ha[s] not identified the office or officials accountable for overseeing administrative costs;’’ 16 and does not sufficiently track its costs.17 Finally, 

GAO surmised that ‘‘had FEMA met its targets, administrative 

costs could have been reduced by hundreds of millions of dollars.’’ 18

The Committee continues to perform oversight of FEMA’s disaster assistance programs, and remains concerned about rising administrative costs. On October 5, 2015, Committee Chairman Ron 

Johnson and Ranking Member Tom Carper sent a letter to FEMA 

Administrator Craig Fugate regarding the allocation and expenditures of funds in regard to Hurricane Sandy.19

GAO reports have made clear that more needs to be done to control FEMA’s administrative costs. Building on those reports, this 

bill would require FEMA to develop and implement a plan that includes strategic goals, milestones for reaching those goals, a timetable for implementation, and clearly defined roles and responsibilities for measuring performance. Additionally, FEMA must do a 

cost-benefit analysis of tracking administrative cost data by specific 

grant programs, and clarify requirements for the Public Assistance 

Grant Program. Finally, the bill requires FEMA to provide an initial briefing to Congress on the plan as well as any updates on 

changes, and to continually review progress toward meeting its 

goals, including updating Congress of the same each fiscal year. 

III. LEGISLATIVE HISTORY

The Directing Dollars to Disaster Relief Act of 2015, S. 2109, was 

introduced September 30, 2015, by Senator Ron Johnson (R–WI). 

The bill was referred to the Committee on Homeland Security and 

Governmental Affairs. 

The Committee considered S. 2109 at a business meeting on October 7, 2015. During the business meeting, a substitute amendment was offered by Senator Johnson. The substitute amendment 

was adopted by voice vote with Senators Johnson, Portman, 


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Lankford, Enzi, Ernst, Sasse, Carper, McCaskill, Baldwin, 

Heitkamp, and Booker present. 

The Committee ordered the bill, as amended, reported favorably 

by voice vote en bloc on October 7, 2015. Senators present for the 

vote on the bill were Senators Johnson, Portman, Lankford, Enzi, 

Ernst, Sasse, Carper, McCaskill, Baldwin, Heitkamp, and Booker. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section establishes the short title of the bill as the ‘‘Directing Dollars to Disaster Relief Act of 2015.’’ 

Section 2. Definitions 

This section defines the terms, ‘‘administrative cost’’, ‘‘Administrator’’, ‘‘Agency’’, ‘‘direct administrative cost’’, ‘‘hazard mitigation 

program’’, ‘‘individual assistance program’’, ‘‘major disaster’’, ‘‘mission assignment’’, and ‘‘public assistance program’’ for the purposes 

of this bill. 

Section 3. Integrated plan for administrative cost reduction 

This section requires the Administrator of FEMA to develop and 

implement a plan to control and reduce administrative costs for 

major disasters. The plan must include: the steps the Agency will 

take to reduce administrative costs; milestones necessary to accomplish the reduction of administrative costs; goals for the average 

annual percentage of administrative costs of major disasters for 

each FY; a timetable for implementation; and the assignment of 

clear roles and responsibilities for monitoring and measuring performance. 

The Administrator must also compare the costs and benefits of 

tracking the administrative cost data for major disasters according 

to the different programs, and, if feasible, track the information. 

FEMA is also required to clarify guidance and minimum documentation requirements for a direct administrative cost claimed by 

a grantee or subgrantee of a public assistance grant program. 

FEMA must brief Congress on the plan being developed within 90 

days after enactment, and if any changes are made to the plan following the briefing, FEMA must notify Congress of the changes. 

Section 4. Reporting requirement 

FEMA is required to submit a yearly report to Congress on the 

development and implementation of the integrated plan required 

under Section 3. These reports will also be updated three and five 

years later to assess the previous three-year and five-year fiscal periods, respectively. Each report must contain the total amount 

spent on administrative costs for the FY, and the average annual 

percentage of administrative costs for the FY, an assessment of the 

effectiveness of the plan created in Section 3, and an analysis of 

whether FEMA is achieving its strategic goals. The report also 

must outline any actions FEMA has identified as useful in improving upon and reaching its goals. Lastly, the reports must be made 

available to the public no later than 30 days after the date that 

FEMA submits the report to Congress. 


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V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

NOVEMBER 23, 2015. 

Hon. RON JOHNSON, 

Chairman, Committee on Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2109, the Directing Dollars 

to Disaster Relief Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Aurora Swanson. 

Sincerely. 

KEITH HALL. 

Enclosure. 

S. 2109—Directing Dollars to Disaster Relief Act of 2015 

S. 2109 would require the Federal Emergency Management 

Agency (FEMA) to develop a plan to reduce the costs of administering programs that provide grants and technical assistance in 

areas affected by major disasters. Under current law, the agency 

is developing a plan to reduce the costs of administering disaster 

programs that would meet many of the requirements in the bill. 

Under the bill, the agency also would be required to issue annual 

reports evaluating the effect of the plan on administrative costs. 

Based on information from FEMA, CBO estimates that implementing the legislation would have an insignificant effect on the 

federal budget over the 2016–2020 period. 

Enacting S. 2109 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. Enacting the bill 

would not increase net direct spending or on-budget deficits in any 

of the four consecutive 10-year periods beginning in 2026. 

S. 2109 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Aurora Swanson. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

Because this legislation would not repeal or amend any provision 

of current law, it would make no changes in existing law within the 


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meaning of clauses (a) and (b) of paragraph 12 of rule XXVI of the 

Standing Rules of the Senate. 

Æ 


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