118TH CONGRESS 

2D SESSION H. R. 7671 

AN ACT 

To amend section 324 of the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act to incentivize 

States, Indian Tribes, and Territories to close disaster 

recovery projects by authorizing the use of excess funds 

for management costs for other disaster recovery 

projects. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Disaster Management 

3 Costs Modernization Act’’. 

4 SEC. 2. USE OF EXCESS FUNDS FOR MANAGEMENT COSTS. 

5 (a) IN GENERAL.—Section 324 of the Robert T. 

6 Stafford Disaster Relief and Emergency Assistance Act 

7 (42 U.S.C. 5165b) is amended— 

8 (1) in subsection (b)(2)— 

9 (A) by redesignating subparagraphs (A) 

10 and (B) as clauses (i) and (ii), respectively, and 

11 adjusting the margins accordingly; and 

12 (B) in the matter preceding clause (i), as 

13 so redesignated, by striking ‘‘provide the fol14 lowing percentage rates’’ and inserting ‘‘pro15 vide— 

16 ‘‘(A) excess funds for management costs as 

17 described in subsection (c); and 

18 ‘‘(B) the following percentage rates’’; 

19 (2) by redesignating subsection (c) as sub20 section (d); and 

21 (3) by inserting after subsection (b) the fol22 lowing: 

23 ‘‘(c) USE OF EXCESS FUNDS FOR MANAGEMENT

24 COSTS.— 
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1 ‘‘(1) DEFINITION.—In this subsection, the term 

2 ‘excess funds for management costs’ means the dif3 ference between— 

4 ‘‘(A) the amount of the applicable specific 

5 management costs authorized under subsection 

6 (b)(1) and subsection (b)(2)(B); and 

7 ‘‘(B) as of the date on which the grant 

8 award is closed, the amount of funding for 

9 management costs activities expended by the 

10 grantee or subgrantee receiving the financial as11 sistance for costs described in subparagraph 

12 (A). 

13 ‘‘(2) AVAILABILITY OF EXCESS FUNDS FOR

14 MANAGEMENT COSTS.—The President may make 

15 available to a grantee or subgrantee receiving finan16 cial assistance under section 403, 404, 406, 407, or 

17 502 any excess funds for management costs. 

18 ‘‘(3) USE OF FUNDS.—Excess funds for man19 agement costs made available to a grantee or sub20 grantee under paragraph (2) may be used for— 

21 ‘‘(A) activities associated with building ca22 pacity to prepare for, recover from, or mitigate 

23 the impacts of a major disaster or emergency 

24 declared under section 401 or 501, respectively; 

25 and 
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1 ‘‘(B) management costs associated with 

2 any— 

3 ‘‘(i) major disaster; 

4 ‘‘(ii) emergency; 

5 ‘‘(iii) disaster preparedness measure; 

6 or 

7 ‘‘(iv) mitigation activity or measure 

8 authorized under section 203, 204, 205, or 

9 404. 

10 ‘‘(4) AVAILABILITY.—Excess funds for manage11 ment costs made available to a grantee or sub12 grantee under paragraph (2) shall remain available 

13 to the grantee or subgrantee until the date that is 

14 5 years after the date on which the excess funds for 

15 management costs are made available under para16 graph (2).’’. 

17 (b) APPLICABILITY.—The amendments made by sub18 section (a) shall apply with respect to any grant award 

19 in relation to a major disaster or emergency declared 

20 under section 401 or 501, respectively, of the Robert T. 

21 Stafford Disaster Relief and Emergency Assistance Act 

22 (42 U.S.C. 5170, 5191)— 

23 (1) the declaration of which is made on or after 

24 the date of enactment of this Act; and 
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1 (2) that is funded with amounts appropriated 

2 on or after the date of enactment of this Act. 

3 (c) GAO STUDY.—Not later than 180 days after the 

4 date of enactment of this Act, the Comptroller General 

5 of the United States shall submit to the Committee on 

6 Homeland Security and Governmental Affairs of the Sen7 ate and the Committee on Transportation and Infrastruc8 ture of the House of Representatives a report— 

9 (1) on the actual management costs described 

10 in section 324 of the Robert T. Stafford Disaster 

11 Relief and Emergency Assistance Act (42 U.S.C. 

12 5165b) during the period of a major disaster dec13 laration under section 401 of such Act (42 U.S.C. 

14 5170) to determine whether the amount set aside for 

15 those management costs after the date of enactment 

16 of this Act is appropriate; and 

17 (2) that includes the management costs de18 scribed in section 324 of the Robert T. Stafford Dis19 aster Relief and Emergency Assistance Act (42 

20 U.S.C. 5165b) for each disaster declared under dur21 ing the period of a major disaster declaration under 

22 section 401 of such Act (42 U.S.C. 5170) during the 

23 5-year period preceding the date of the report, the 

24 amount set aside for those management costs, the 

25 use of those management costs, the length of each 
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1 disaster, and the reason for the length of each dis2 aster. 

3 (d) NO ADDITIONAL FUNDS.—No additional funds 

4 are authorized to be appropriated to carry out the amend5 ments made by subsection (a). 

Passed the House of Representatives December 9, 

2024. 

Attest: 

Clerk. 

118TH CONGRESS 

2D SESSION H. R. 7671 

AN ACT 

To amend section 324 of the Robert T. Stafford 

other disaster recovery projects. the use of excess funds for management costs for to close disaster recovery projects by authorizing incentivize States, Indian Tribes, and Territories Disaster Relief and Emergency Assistance Act to