U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

89–010 

" ! SENATE 115TH CONGRESS

2d Session 

REPORT

2018

115–446 

Calendar No. 737 

DISASTER RECOVERY REFORM ACT OF 2018 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 3041 

TO AMEND THE ROBERT T. STAFFORD DISASTER RELIEF AND 

EMERGENCY ASSISTANCE ACT TO PROVIDE FOR DISASTER 

RECOVERY REFORMS, AND FOR OTHER PURPOSES 

DECEMBER 19, 2018.—Ordered to be printed 


E:\Seals\Congress.#13
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

JOHN HOEVEN, North Dakota 

STEVE DAINES, Montana 

JON KYL, Arizona 

CLAIRE MCCASKILL, Missouri 

THOMAS R. CARPER, Delaware 

HEIDI HEITKAMP, North Dakota 

GARY C. PETERS, Michigan 

MAGGIE HASSAN, New Hampshire 

KAMALA D. HARRIS, California 

DOUG JONES, Alabama 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

MICHAEL J. LUEPTOW, Chief Counsel for Governmental Affairs 

MARGARET E. DAUM, Minority Staff Director 

CHARLES A. MOSKOWITZ, Minority Senior Legislative Counsel 

CHRISTOPHER J. MULKINS, Minority U.S. Government Accountability Office Detailee 

LAURA W. KILBRIDE, Chief Clerk 

Calendar No. 737 

115TH CONGRESS SENATE REPORT " ! 2d Session 115–446 

DISASTER RECOVERY REFORM ACT OF 2018 

DECEMBER 19, 2018.—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. 3041] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 3041) to amend the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act to provide 

for disaster recovery reforms, and for other purposes, having considered the same, reports favorably thereon with amendments and 

recommends that the bill, as amended, do pass. 

CONTENTS 

Page 

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

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

III. Legislative History ......................................................................................... 7 

IV. Section-by-Section Analysis .......................................................................... 9 

V. Evaluation of Regulatory Impact .................................................................. 16 

VI. Congressional Budget Office Cost Estimate ................................................ 16 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 24 

I. PURPOSE AND SUMMARY

The purpose of S. 3041 is to improve the way the nation prepares 

for and responds to disasters. It improves our nation’s resilience by 

providing financial resources for pre-disaster mitigation and 

incentivizing jurisdictions to adopt up-to-date building codes. The 

bill enables improved Federal disaster response by providing the 

Federal Emergency Management Agency (FEMA) with more ways 

to augment its permanent workforce. It emphasizes the need for 

and provides tools to execute an effective local response to disasters. It does so by empowering states to administer housing assistance efforts, and increasing allowable management costs for reVerDate Sep 11 2014 01:12 Jan 03, 2019 Jkt 089010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR446.XXX SR446
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1 Exec. Order No. 12127, 43 F.R. 41943 (1979). 

2Pub. L. No. 100–707 (1988). 

3Pub. L. No. 93–288 (1974); H.R. 2707, 100th Cong. Major Disaster Relief and Emergency Assistance Amendments of 1987. 4 Id. 5Pub. L. No. 107–296 (2002); H.R. 5005, 107th Cong. Homeland Security Act of 2002. 

6Post-Katrina Emergency Management Reform Act, Pub. L. No. 109–295; Sandy Recovery Improvement Act, Pub. L. No. 113–2. 7FEMA: Prioritizing a Culture of Preparedness: Hearing before the S. Comm. on Homeland 

Sec. & Governmental Affairs, 115th Cong. (2018) (statement of Brock Long, Administrator, Fed. 

Emergency Mgmt. Agency), available at https://www.hsgac.senate.gov/imo/media/doc/TestimonyLong-2018-04-11.pdf. 8 Id. 9 2017 Hurricane Season: Oversight of the Federal Response: Hearing before the S. Comm. on 

Homeland Sec. & Governmental Affairs, 115th Cong. (2017); FEMA: Prioritizing a Culture of 

Preparedness: Hearing before the S. Comm. on Homeland Sec. & Governmental Affairs, 115th 

Cong. (2018). 

sponse and recovery. The bill also requires FEMA to review and 

update its method for evaluating requests for major disaster declarations, answering longstanding recommendations by the Government Accountability Office. Finally, the bill ensures the effective 

administration of Federal funds obligated towards emergency response and grant programs through transparency and reporting requirements. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

Background 

In 1979, President Carter issued Executive Order 12127 to merge 

several Federal disaster-related agencies and create FEMA.1 The 

statutory authority for the majority of Federal disaster response activities draw from the Robert T. Stafford Disaster Relief and Emergency Assistance Act,2 which was signed into law November 23, 

1988, and amended the Disaster Relief Act of 1974.3 The law 

tasked FEMA with coordinating government-wide relief efforts.4

FEMA operated as an independent agency for more than twenty 

years until the Homeland Security Act of 2002 merged the agency 

into the newly-created Department of Homeland Security (DHS or 

the Department).5 Since then, Congress has enacted several major 

pieces of legislation to improve FEMA’s organization, external 

interaction, and mission execution, particularly in the wake of catastrophic events. These include the 2006 Post-Katrina Emergency 

Management Reform Act and the 2013 Sandy Recovery Improvement Act, which both drew lessons from the disasters that immediately preceded their enactment.6

In 2017, multiple major hurricanes and devastating wildfires affected nearly 15 percent of the nation’s population.7 The local and 

Federal efforts to address these catastrophic events provided valuable lessons-learned regarding the need for improved pre-disaster 

mitigation efforts, the limitations of state and Federal response resources, and FEMA’s overall role in the disaster response and recovery process.8 The Committee held two hearings to address the 

historic disaster response in October 2017 and April 2018.9 Witness 

testimony from FEMA Administrator Brock Long and Army Corps 

of Engineers Major General Donald Jackson specifically highlighted 

two areas for improvement: the need to better prepare jurisdictions 

to respond at a state and local level, and the need to better target 

3 

10 2017 Hurricane Season: Oversight of the Federal Response: Hearing before the S. Comm. on 

Homeland Sec. & Governmental Affairs, 115th Cong. (2017) (statement of Brock Long, Administrator, Fed. Emergency Mgmt. Agency), available at https://www.hsgac.senate.gov/imo/media/ 

doc/Testimony-Long-2017-10-31.pdf; (statement of Major Gen. Donald Jackson, Deputy Commanding Gen. for Civil and Emergency Operations: U.S. Army Corps of Engineers), available 

at https://www.hsgac.senate.gov/imo/media/doc/Testimony-Robinson%20and%20Jackson-2017-10- 

312.pdf. 11 Congressional Research Serv., 2017 Disaster Supplemental Appropriations: Overview, CRS 

R45084 (Jan. 25, 2018). 12 Nat’l Inst. of Building Sciences, Natural Hazard Mitigation Saves: 2017 Interim Report (December 2017), available at http://www.wbdg.org/files/pdfs/MS2_2017Interim%20Report.pdf. 13Gov’t Accountability Office, GAO–15–515, Hurricane Sandy: An Investment Strategy Could 

Help the Federal Government Enhance National Resilience for Future Disasters (2015), available at https://www.gao.gov/products/GAO-15-515. 

pre-disaster mitigation efforts, as evidenced by the recovery challenges their agencies faced in Puerto Rico and Texas.10

Congress provided an additional $136 billion through three separate supplemental appropriations, including $120 billion in budget 

authority and $16 billion in debt held by the National Flood Insurance Fund, to facilitate the Federal response to the 2017 disasters.11 Such a spending rate is unsustainable. In January 2018, the 

congressionally-authorized National Institute of Building Sciences 

released report findings that ‘‘society saves $6 for every $1 spent 

through mitigation grants.’’ 12 The under-utilized method of disaster management through mitigation offers the potential to minimize the impact of disasters on citizens while decreasing Federal 

spending. 

A Focus on Mitigation 

This bill addresses state and local preparedness and pre-disaster 

mitigation on several fronts. In 2015, the Government Accountability Office (GAO) found that the federal government placed far 

too great an emphasis on post-disaster mitigation funding versus 

pre-disaster resilience efforts and recommended that a greater balance be established between pre- and post-disaster resilience investments.13 Section 32 creates a mechanism through which the 

President can prioritize pre-disaster mitigation efforts. By drawing 

funds equal to six percent of specific grant funds associated with 

major disasters from the Disaster Relief Fund and directing those 

funds towards national priorities on a competitive basis, FEMA will 

invest in high-return mitigation efforts that will save lives and 

Federal tax dollars. The legislation specifically emphasizes that a 

jurisdiction’s proposed direct improvement in resiliency and its efforts towards adoption of up-to-date building codes will be considered as a basis for competition when deciding which projects FEMA 

will fund. In doing so, the Committee seeks to incentivize the adoption of current, applicable building codes, and does not seek to prohibit a jurisdiction’s authority to amend codes based on unique 

local considerations. 

Additionally, Section 38 addresses the impact on recovery when 

under-insured, state-owned facilities are damaged or destroyed by 

a disaster by requiring FEMA to report on the federal cost of insufficient state self-insurance strategies. 

Furthermore, in 2016, GAO found there is limited federal assistance available to states for the purpose of seismic risk mitigation 

efforts and made several recommendations to strengthen federal 

4 

14Gov’t Accountability Office, GAO–16–680, Earthquakes: Additional Actions Needed to Identify and Mitigate Risks to Federal Buildings and Implement an Early Warning System (2016), 

available at https://www.gao.gov/products/GAO-16-680. 15Fed. Emergency Mgmt. Agency, 2018–2022 Strategic Plan (2018), available at https:// 

www.fema.gov/media-library/assets/documents/96981. 16 Id. 17 44 USC § 206.36. 18Gov’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 (2012), available at https://www.gao.gov/assets/650/648162.pdf. 19FEMA: Prioritizing a Culture of Preparedness: Hearing before the S. Comm. on Homeland 

Sec. & Governmental Affairs, 115th Cong. (2018). 

mitigation earthquake efforts.14 Section 31 authorizes FEMA to 

provide assistance under the Hazard Mitigation Grant Program 

and Pre-Disaster Mitigation program for activities that help reduce 

the risk of future damage in areas affected by earthquake hazards. 

Enabling Local Response and Responsibility 

The insights drawn from 2017 also informed FEMA’s 2018 Strategic Plan, which focused on building a culture of preparedness, 

readying the nation for catastrophic disasters, and reducing the 

complexity of FEMA.15 The plan placed specific emphasis on empowering local communities to serve the primary role in disaster 

response, citing that ‘‘success is best delivered through a system 

that is Federally supported, state managed, and locally executed.’’ 16 Refocusing efforts primarily at the local level requires 

FEMA to accurately determine a jurisdiction’s capability to respond 

and recover without Federal intervention. While the Committee 

supports FEMA’s plans to empower local communities to respond 

to disasters, it is vital that those communities be prepared and develop actionable plans to conduct and coordinate such a response 

effectively. 

Since the 1980s, the Federal Government has become increasingly involved in funding and providing disaster assistance, in part 

to the outdated formula that FEMA has used to recommend to the 

President to declare a disaster. Under the Stafford Act, the President may declare an emergency declaration or major disaster declaration when the situation is beyond the capabilities of state, 

local, and/or tribal governments to respond.17 However, the formula 

that FEMA has used to assess when to recommend to the President 

to declare a disaster, currently known as the Per Capita Impact Indicator, has resulted in an increasing number of disasters being declared compared to prior decades, due to FEMA’s failure to regularly update the formula for inflation.18 As a result, FEMA has 

been recommending to the President to make declarations under 

the Stafford Act for events that would not have qualified during 

the 1980s. In this way, FEMA’s current approach to recommending 

when to declare disasters is not consistent with original congressional intent under the Stafford Act, requiring Federal assistance 

to be provided when state, local, or tribal capabilities had been 

overwhelmed. As Chairman Ron Johnson explained at a hearing, 

‘‘. . . more and more often States are looking to the Federal Government to do what I believe was probably more suited toward 

State and local response. As a result, it puts a great deal of stress 

on Federal disaster resources and certainly FEMA.’’ 19

GAO has recommended that FEMA update its process for assessing state capacity since its 2012 report: Federal Disaster Assistance: 

Improved Criteria Needed to Assess a Jurisdiction’s Capability to 

5 

20Gov’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 (2012). 21 Id. 22 Id. 23 Ranking Member Tom Coburn, An Imperfect Storm, S. Comm. on Homeland Sec. & Governmental Affairs, available at https://www.hsgac.senate.gov/download/?id=5518F153-BBB6-4AFFBCDB-F700A58479DD. 24 Id. 25 Id. 26FEMA: Prioritizing a Culture of Preparedness: Hearing before the S. Comm. on Homeland 

Sec. & Governmental Affairs, 115th Cong. (2018). 27 Id. 

Respond and Recover on Its Own.20 Specifically, GAO recommended 

that FEMA adjust its ‘‘primary factor’’ for determining disaster eligibility, the per capita impact indicator, to properly account for inflationary changes since its inception in 1986.21 GAO noted that 

FEMA’s failure to do so from 1986–1999 had left the indicator ‘‘artificially low,’’ and led to a significant increase in the annual number of major disaster declarations since 1953.22

In 2014, then-Committee Ranking Member Tom Coburn released 

a minority staff report on the disaster declaration process, finding 

that ‘‘nearly half of all recently declared ‘disasters’ would not have 

qualified for federal assistance in the 1980s and 1990s.’’ 23 The report also called on FEMA to ‘‘reform the process for recommending 

disaster declarations and approving federal disaster aid,’’ encouraging DHS and FEMA to ‘‘move swiftly to update the per-capita indicator for inflation to cover all years since 1986.’’ 24 Senator 

Coburn also stated, ‘‘Congress should enact legislation to ensure 

disaster funding is focused on the most serious disasters . . . those 

that truly overwhelm state and local capabilities.’’ 25

Importantly, the current process for deciding when to recommend 

the President issue a declaration results in fewer resources available to provide assistance during major emergencies. For example, 

on the day that Hurricane Harvey made landfall in Texas in 2017, 

FEMA was actively responding to 30 different disasters across the 

nation.26 Section 37 of this bill addresses this issue by requiring 

FEMA to initiate a rulemaking to update the factors it considers 

when evaluating a jurisdiction’s request for a major disaster declaration, specifically considering its method for estimating the cost 

of major disaster assistance. When updating these methods, FEMA 

should take into account the states’ ability to reprioritize, and consider a phased-in approach when rebalancing state and Federal responsibilities in a manner consistent with original congressional intent under the Stafford Act. 

Similarly, this bill enables FEMA to better support state-managed disaster efforts. It does so by reducing the number of impediments to efficient execution of disaster response and recovery plans 

and giving FEMA and its state and local partners the tools to execute their missions. Sections 11 and 15 address direct requests 

from the FEMA Administrator, presented during its April 2018 

hearing.27 Section 11 enables states to administer direct housing 

solutions, and is intended to expedite the acquisition and delivery 

of housing solutions by leveraging state autonomy, while still maintaining accountability for Federal dollars. Temporary and longterm housing challenges are unique in every disaster, and the 

Committee encourages the consideration of innovative housing solutions, including the use of peer-to-peer lodging rentals for responders and disaster victims as part of both state and Federal 

6 

28 Id. 29Fed. Emergency Mgmt. Agency, 2018–2022 Strategic Plan (2018), available at https:// 

www.fema.gov/media-library/assets/documents/96981. 

strategies. Section 15 increases allowable management costs for 

state and local administration of Federal disaster relief efforts. 

FEMA and the Committee recognize the challenge states face in 

surging capacity to manage post-disaster activities, and intend for 

this investment to enable a more effective administration of disaster response programs.28

Lastly, Section 22 assists FEMA in expanding and maintaining 

a skilled and experienced workforce, enabling the transition of temporary employees to career-conditional status after three years of 

continuous service. 

Streamlining FEMA processes 

FEMA’s 2018 Strategic Plan includes an objective focused on reducing the complexity of FEMA.29 The Committee shares this intention. Section 23 of the Act requires FEMA to conduct a joint 

study with other applicable agencies aimed at streamlining the 

post-disaster data collection process. This study is intended to create efficiencies for disaster victims, developing simpler, faster, and 

more easily understandable processes for applying for assistance 

from multiple Federal agencies. Section 21 authorizes FEMA to develop incentive strategies to encourage jurisdictions to expeditiously closeout their mission assignments in order to provide 

quicker relief to victims and cost savings to taxpayers. Section 19 

also aims to create a more efficient process for both victims and 

FEMA, by preserving the right to arbitration in lieu of appeal for 

victims whose claims are estimated to be above $500,000. 

Special considerations 

Because every disaster presents unique challenges, this legislation includes provisions to enable FEMA, along with its state and 

local partners, to better address the unique needs that may arise 

during disaster response and recovery. Section 18 allows FEMA to 

establish veterinary emergency teams, which will address the 

unique needs of FEMA canine search teams, as well as those animals affected by disasters. 

Section 36 adds private nonprofit center-based childcare to the 

list of ‘‘critical services’’ eligible for federal assistance. The language in this section is intended to narrowly include such facilities 

that support a jurisdiction’s overall ability to recover from an emergency or disaster, and exclude those that do not necessarily contribute to broader community response and recovery—home-based 

childcare for example. Section 12 expands financial assistance eligibility for accessibility-related rental housing and infrastructure improvements for individuals and households with disabilities. 

Section 10 preserves the President’s authority to waive the general prohibition on persons or entities from receiving financial assistance from another program, also known as ‘‘duplication of benefits.’’ The Committee adopted language to ensure that the default 

application of law is to prohibit such duplication, and placed a 45- 

day time limit on the President’s ability to provide such a waiver 

in order to preserve the intended progression of need-based assistance options: encouraging individuals to utilize insurance as a priVerDate Sep 11 2014 01:12 Jan 03, 2019 Jkt 089010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\SR446.XXX SR446
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30Gov’t Accountability Office, GAO–11–318SP, Opportunities to Reduce Potential Duplication 

in Government Programs, Save Tax Dollars, and Enhance Revenue (2011), available at https:// 

www.gao.gov/products/GAO-11-318SP. 31Gov’t Accountability Office, GAO–12–303, Homeland Security: DHS Needs Better Project Information and Coordination among Four Overlapping Grant Programs (2012), available at 

https://www.gao.gov/products/GAO-12-303. 

mary means of personal protection, to take small business loans if 

they are uninsured, and to seek federal individual assistance 

grants only as a last resort. 

Section 40 requires FEMA to provide Congress with a progress 

update on a National Preparedness Assessment, which GAO recommended FEMA develop in 2010, but FEMA has yet to complete.30 The assessment is intended to review security risks and capabilities to prioritize grant dollars to needed localities. 

Eliminating waste 

The significant Federal financial investment that disaster response missions require warrants an equally significant level of accountability. Toward that end, this bill includes several provisions 

aimed at ensuring that Federal dollars are trackable at the grantee 

and sub-grantee level. Section 24 increases transparency and accountability by requiring FEMA to document specific information 

on public assistance and mission assignment expenditures and submit a report on public assistance recipient and sub-recipient contracts. The Committee intends for this reporting requirement to encourage FEMA to integrate improved sub-grantee accounting capabilities into its accountability database software and lead to the 

availability of near real-time information on sub-grantee spending. 

By requiring FEMA to begin tracking this data, Congress, DHS’s 

Inspector General, and GAO will be able to provide greater oversight of sub-grantee spending. 

Finally, in 2012, GAO identified multiple factors that contribute 

to the risk of duplication among four FEMA disaster preparedness 

grant programs. As a result, GAO recommended that, to help reduce the risk of unnecessary duplication and strengthen the administration and oversight of these programs, the FEMA Administrator 

should take steps ‘‘to ensure that FEMA collects project information with the level of detail needed to better position the agency to 

identify any potential unnecessary duplication within and across 

the four grant programs, weighing any additional costs of collecting 

these data.’’ 31 GAO included this recommendation in its annual report to Congress on duplication, overlap, and fragmentation. Section 41 requires FEMA to provide Congress with a progress update 

on FEMA’s identification of ways to reduce funding duplications 

within non-natural disaster preparedness grants, as recommended 

by GAO. 

III. LEGISLATIVE HISTORY

Chairman Johnson introduced S. 3041, the Disaster Recovery Reform Act of 2018 on June 11, 2018. The bill was referred to the 

Committee on Homeland Security and Governmental Affairs. Ranking Member Claire McCaskill joined as a cosponsor on June 26, 

2018, and Senator John Kennedy joined as a cosponsor on June 29, 

2018. 

8 

The Committee considered S. 3041 at a business meeting on 

June 13, 2018. Chairman Johnson offered a modified substitute 

amendment that the Committee adopted by unanimous consent. 

Chairman Johnson offered Johnson Amendment 1 as twice modified. The amendment adjusts the effective date for multiple sections of the bill to avoid unintentional retro-activity, and requires 

FEMA to assess its methods for reviewing Federal disaster declaration requests and modernize those processes through rulemaking. 

That amendment was adopted by voice vote with Senators Johnson, 

Portman, Lankford, Enzi, McCaskill, Carper, Peters, Hassan, Harris, and Jones present. 

Senator Peters offered Peters Amendment 1. The amendment 

strikes a provision that would prohibit the President from determining that a Small Business Administration loan is a duplication 

of assistance, and precludes an individual from receiving FEMA Individual Assistance. That amendment was adopted by voice vote 

with Senators Johnson, Portman, Lankford, Enzi, McCaskill, Carper, Peters, Hassan, Harris, and Jones present. Senator Hassan 

voted ‘‘no’’ for the record. 

Senators Harris and Carper offered Harris-Carper Amendment 1. 

The amendment would require FEMA to enter into a contract with 

the National Academy of Medicine to conduct a study on identifying best practices in determining mortality counts as a result of 

major disasters. Chairman Johnson offered a second-degree amendment to Harris-Carper Amendment 1, which would preclude the 

authorization of any additional funds to conduct the study. The 

Johnson second-degree amendment was adopted by a roll call vote 

of 8 yeas to 7 nays. Senators Johnson, Portman, Lankford, and 

Enzi voted for the amendment. Senators McCain, Paul, Hoeven, 

and Daines voted in favor of the amendment by proxy. Senators 

McCaskill, Carper, Peters, Hassan, Harris, and Jones voted against 

the amendment. Senator Heitkamp voted against the amendment 

by proxy. Harris-Carper Amendment 1 as modified by the Johnson 

second-degree amendment was adopted by a voice vote with Senators Johnson, Portman, Lankford, Enzi, McCaskill, Carper, Peters, 

Hassan, Harris, and Jones present. 

Seven amendments were adopted by voice vote en bloc with Senators Johnson, Portman, Lankford, Enzi, McCaskill, Carper, Peters, 

Hassan, Harris, and Jones present. Those amendments were: 

Portman Amendment 1 as modified, which requires FEMA to coordinate with state and local architect and engineer organizations 

on post-disaster building safety assessment best practices; Enzi 

Amendment 1, which requires the FEMA Administrator to complete a national preparedness assessment and report to Congress 

on capabilities gaps and their costs; Enzi Amendment 2 as modified, which requires the FEMA Administrator to report on the 

agency’s efforts to identify and prevent unnecessary duplication 

within and across the non-natural disaster preparedness grant programs; McCaskill Amendment 1 as amended by a Johnson Second 

Degree Amendment, which extends unemployment assistance to eligible residents of Puerto Rico and the U.S. Virgin Islands until 52 

weeks after the date of disaster declarations for Hurricanes Irma 

and Maria; McCaskill Amendment 2, which required FEMA to collect information on FEMA grant recipients and sub-recipients prior 

to disaster closeouts; Harris Amendment 2, which requires FEMA 

9 

to conduct a review of the public assistance eligibility process for 

underground water infrastructure associated with major disaster 

declarations; and Jones Amendment 1, which suggests FEMA conduct a study to assess the effectiveness of evacuation routes to accommodate anticipated traffic flows in cooperation with the Federal 

Highway Administration and state and local governments. 

The bill, as amended, was ordered reported favorably by a voice 

vote. Senators Johnson, Portman, Lankford, Enzi, McCaskill, Carper, Peters, Hassan, Harris, and Jones were present. 

Consistent with Committee Rule 11, the Committee reports the 

bill with a technical amendment by mutual agreement of the 

Chairman and Ranking Member. 

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

Section 1. Short title; Table of contents 

This section designates the title of the bill as the ‘‘Disaster Recovery Reform Act of 2018’’ and lists the table of contents. 

Section 2. Applicability 

This section sets the default application of the bill to August 1, 

2017, for all sections not otherwise noted. 

Section 3. Definitions 

This section establishes definitions of the terms ‘‘administrator,’’ 

‘‘agency,’’ and ‘‘state.’’ 

Section 4. Wildfire prevention 

This section permits the President to provide hazard mitigation 

aid to states affected by wildfires, even when a major disaster is 

not declared. A report is due within one year of enactment summarizing projects funded under the new section. 

Section 5. Additional activities 

This section qualifies what activities hazard mitigation aid recipients can conduct to mitigate against wildfire or windstorm damage. The list of examples includes, among other things, constructing erosion barriers, spillways, and dams. 

Section 6. Code implementation enforcement 

This section includes building code and floodplain enforcement in 

the general Federal assistance the President may provide during a 

major disaster response. In addition, the President may contribute 

to wages for code implementation and enforcement for up to six 

months after a major disaster. 

Section 7. Program improvements 

This section removes the cap on large in-lieu contributions to 

public facilities (formerly 90 percent of cost-share) and private facilities (formerly 75 percent of cost-share). This section also prohibits FEMA from conditioning assistance on the adoption of alternative procedures. Additionally, this section establishes a presumption that costs incurred for a grant project are reasonable and eligible if the project estimate was certified by a professional engineer 

and accepted by FEMA. 

10 

Section 8. Prioritization of facilities 

This section requires FEMA to provide annual training to state, 

tribal, and local government first responders and utility companies 

on providing assistance to health care facilities during an emergency, preparing for potential power outages, and coordinating 

emergency response plans. 

Section 9. Guidance on evacuation routes 

This section requires FEMA, in conjunction with the Federal 

Highway Administration (FHA), to issue guidance to assist states 

in the planning and maintenance of evacuation routes. This section 

also establishes criteria FEMA should use when creating evacuation route guidance and criteria FHA should consider in the design and maintenance of evacuation route guidance. Additionally, 

FEMA, in conjunction with the FHA, may conduct studies to determine the capability of evacuation routes and to assist in the creation of evacuation route guidance. 

Section 10. Duplication of benefits 

After a request from a Governor on behalf of a state or other entity or person that suffered a loss in a major disaster, this section 

permits the President to waive the general prohibition on Federal 

assistance being provided to a party that has received financial assistance from another program or source. The President must decide whether to issue the waiver within 45 days of submission. This 

section is applicable only to disaster or emergency assistance provided on or after the date of enactment of this Act. 

Section 11. State administration for direct temporary housing and 

permanent housing construction 

This section allows FEMA to provide block grants (100 percent 

cost share) to states for disaster housing assistance, provided a 

state housing strategy is submitted to and approved by the President. The strategy must outline how the state will work with Federal organizations, local entities, and individual survivors to meet 

housing needs. The strategy must also include the creation of a 

State Disaster Housing Task Force to bring national and local parties together to evaluate housing requirements and determine solutions. Prior to approving an application for housing assistance, the 

President must conduct a quality assessment and ensure there are 

sufficient controls in place to prevent waste within the requested 

housing programs. Additionally, the DHS Inspector General (IG) 

will periodically audit the programs. Within 18 months of enactment, the DHS IG must submit a report to Congress regarding the 

role state or tribal governments play in providing housing assistance, their ability to provide such assistance, and the efficacy of the 

assistance provided. Furthermore, within 12 months of enactment, 

FEMA must submit a report to Congress on possible incentive 

awards to offer to state and tribal governments to encourage participation. Finally, FEMA must issue final regulations regarding 

this section within two years of enactment. 

Section 12. Assistance to individuals and households 

This section clarifies that financial assistance to rent alternative 

housing after a disaster will not count towards the maximum 

11 

amount of assistance available to an individual or household, and 

eliminates the cap on individual financial assistance in regards to 

accessibility-related expenses for individuals with disabilities. This 

section is applicable only to disaster or emergency assistance provided on or after the date of enactment of this legislation. 

Section 13. Multifamily lease repair assistance 

This section allows FEMA to lease multifamily rental properties 

impacted by or located in a major disaster area. It allows FEMA 

to repair the rental properties in order to make them available to 

meet emergency housing needs, and to deduct the cost of repairs 

from the value of the lease agreement, even if the total is greater 

than the value of the lease agreement. 

Section 14. Private nonprofit facility 

This section adds food banks to the list of private nonprofit facilities eligible for FEMA assistance. The applicability of this section 

extends to disaster or emergency assistance provided on or after 

February 9, 2018. 

Section 15. Management costs 

This section changes the definition of management cost to include indirect costs, direct administrative costs, and other administrative costs. It also establishes reimbursement limits to grantees 

for management costs for hazard mitigation and public assistance 

programs. A grantee under the hazard mitigation section 404 may 

be reimbursed up to 15 percent of the total grant, and a grantee 

under public assistance sections 403, 406, 407, or 502 may be reimbursed up to 12 percent of the total grant award. 

Section 16. Flexibility 

This section allows certain disaster assistance debts to be waived 

if such assistance was distributed based on an error by FEMA; 

there was no fault on behalf of the debtor; and the collection of the 

debt would be against equity and good conscience. The debt may 

not be waived if the debt involves fraud or misrepresentation. This 

section also places the DHS IG in charge of determining what percentage of assistance was distributed based on an error. Additionally, this section establishes a statute of limitations requiring the 

process of recouping any assistance to begin within 3 years of the 

date the assistance was received. The section applies to disaster or 

emergency assistance provided on or after January 1, 2004. 

Section 17. Additional disaster assistance 

When providing economic development grants after a disaster or 

emergency under the Public Works and Economic Development 

Act, this section allows the Secretary of Commerce to encourage 

grantees to use assistance on hazard mitigation. This section also 

extends the Emergency Management Assistance Compact grants 

and Emergency Management Performance Grant Program through 

2022. 

Section 18. National veterinary emergency teams 

This section establishes a pilot program allowing the creation of 

veterinary emergency teams at one or more colleges. This section 

12 

also outlines the responsibilities of national veterinary emergency 

teams, to include assistance for FEMA canine search teams, care 

for impacted domestic and livestock animals, and treatment of 

zoonotic diseases. 

Section 19. Right of arbitration 

This section allows applicants to request arbitration for a dispute over $500,000 after the initiation of their first appeal. Those applicants requesting arbitration forfeit their right to further appeal. 

FEMA must issue regulations within two years to implement this 

section. 

Section 20. Unified federal environmental and historic preservation 

review 

This section requires the FEMA Administrator to review and 

submit a report to Congress on the expedited interagency environmental and historic preservation review process and survey other 

agencies’ categorical exclusions. This section also requires the Administrator to issue regulations to implement any recommendations, including categorical exclusions, identified in the report and 

survey. 

Section 21. Closeout incentives 

This section allows the FEMA Administrator to develop incentives that would encourage state, local, and tribal governments to 

close out expenditures and activities related to disaster or emergency assistance in a timely manner. Additionally, FEMA must 

work to reduce the time to close out disaster program awards. 

Section 22. Performance of services 

This section allows the FEMA Administrator to appoint temporary employees, who have served continuously for at least three 

years, to positions within FEMA in the same manner as competitive service employees. Appointed employees become career-conditional employees, unless they have already completed the career 

tenure service requirements. 

Section 23. Study to streamline & consolidate information collection 

This section directs the FEMA Administrator, in conjunction 

with other appropriate Federal agencies, to conduct a study and develop a plan to make the collection of information from disaster assistance applicants more efficient and less burdensome. It also requires FEMA to regularly report information on Federal disaster 

assistance awards to the public via a website. FEMA, coordinating 

with the other appropriate agencies, must submit the plans to comply with these requirements to Congress within one year of enactment. 

Section 24. Agency accountability 

This section creates transparency in grant funding and directs 

FEMA to provide regular reports on its website regarding grant 

awards, disaster spending, disaster contracts, and other related 

disaster activities. Within five days of an award over $1 million 

being granted, FEMA is required to publish information regarding 

the specifics of the award. FEMA must also publish information on 

13 

any mission assignment orders for over $1 million. FEMA is required to update the cost estimate of mission assignments within 

ten days of the end of each month until completion of a project. Additionally, FEMA must publish Disaster Relief Monthly Reports 

within ten days of the beginning of each month, including the 

method and data used to obtain the results displayed in the report. 

Furthermore, FEMA must publish information, within ten days of 

the end of each month, regarding contracts awarded with a value 

over $1 million and provide Congress with a summary report of 

contracts awarded within ten days of the end of each fiscal year. 

Finally, within 180 days of enactment FEMA is required to begin 

collecting information on all contracts awarded for greater than 

$500,000 and provide a report on this information to Congress 

within 365 days of enactment. 

Section 25. Audit of contracts 

This section prohibits FEMA from reimbursing any contract that 

prohibits the FEMA Administrator or the Comptroller General of 

the United States from performing oversight or auditing over the 

contract. 

Section 26. Inspector general audit of FEMA contracts for tarps and 

plastic sheeting 

This section requires the DHS IG to audit FEMA contracts for 

tarps and plastic sheeting in response to Hurricanes Irma and 

Maria in Puerto Rico and the U.S. Virgin Islands, beginning no 

later than 30 days after enactment. This section also outlines what 

considerations the DHS IG should review during the audit. Within 

270 of commencement of the audit, the DHS IG must provide Congress a report on his findings. 

Section 27. Relief organizations 

This section clarifies long-term recovery groups and domestic 

hunger relief organizations as eligible organizations that can be 

used to provide relief and assistance under the Stafford Act. 

Section 28. Guidance on inundated and submerged roads 

This section directs FEMA to provide state, local, and tribal governments guidance on assessing and repairing or replacing submerged roads that were damaged or destroyed by a disaster. 

Section 29. Guidance and recommendations 

This section requires FEMA to provide guidance on Federal assistance application processes to community associations that are 

providing essential services of a governmental nature. FEMA must 

provide a proposal to Congress within 90 days of enactment regarding the eligibility of community areas and cooperatives to receive 

disaster assistance. 

Section 30. Guidance on hazard mitigation assistance 

This section requires the FEMA Administrator to provide guidance regarding the acquisition and upkeep of properties purchased 

with FEMA funds as a mitigation measure. This action must take 

place within 180 days of enactment. 

14 

Section 31. Additional hazard mitigation activities 

This section allows mitigation assistance funds to be spent on 

seismic detection equipment aimed at earthquake early warning. 

Section 32. National public infrastructure predisaster hazard mitigation 

This section clarifies how technical and financial assistance can 

be used, permitting assistance to be used to enforce the latest codes 

and standards. The President is permitted to reallocate any funds 

given to a state for this purpose that are not used within three 

years of the initial allocation. These reallocated funds are to be 

awarded to cost-effective mitigation activities on a competitive 

basis. This section allows the President to set aside funds equal to 

up to six percent of declared disaster estimates and place that 

amount in an account for national-level mitigation priority projects. 

Section 33. Additional mitigation activities 

This section allows the President to contribute up to 75 percent 

of the cost of mitigation activities that are deemed cost-effective 

and effective in mitigating hazards and potential damage. The section also establishes how eligible cost estimates are determined and 

clarifies code applicability for mitigation projects. The applicable 

code is the latest published codes or standards, even if they went 

into effect after the time the disaster occurred. Additionally, the 

section requires FEMA to issue a final rulemaking within 18 

months of enactment over the definition of the terms ‘‘resilient’’ 

and ‘‘resiliency,’’ with interim guidance provided within 60 days of 

enactment. FEMA is required to report to Congress a summary of 

the guidance issued within two years of enactment. 

Section 34. Flood insurance 

This section provides an exception for educational, medical, correctional, and emergency services buildings from the reduction of 

federal assistance for flood damage. It restricts the reduction to 

apply only once per complex, vice multiple per-building penalties in 

a single, blanket-insured complex. 

Section 35. Certain recoupment prohibited 

This section requires FEMA to deem any covered disaster assistance provided to have been properly procured. It defines ‘‘covered 

disaster assistance’’ as assistance resulting from a situation in 

which the DHS IG determines that assistance was based on the inaccurate advice of a FEMA Technical Assistance contractor. This 

section also requires FEMA to provide funding for the covered disaster assistance if it was previously provided but subsequently 

withdrawn. 

Section 36. Federal assistance to individuals and households and 

nonprofit facilities 

This section grants fee waivers for documents lost during disasters, specific to passports and certain citizenship and employment 

documents. This section also adds private nonprofit center-based 

childcare to the list of critical facilities eligible for Federal assistance. Within 365 days of enactment, FEMA and other related agencies must provide Congress a report on the costs associated with 

15 

fee waivers. This section applies to disasters declared on or after 

enactment. 

Section 37. Cost of assistance estimates 

This section requires FEMA to review and adjust the method 

used in assessing eligibility for major disaster declarations and in 

determining the estimated cost of assistance. FEMA must provide 

a report on the matter to Congress within 270 days of enactment. 

Within two years of enactment, FEMA must review the factors considered in evaluating requests for disaster declarations and how 

FEMA calculates disaster assistance cost estimates and initiate 

rulemaking to update them. 

Section 38. Report on insurance shortfalls 

Starting within two years of enactment, this section requires 

FEMA to submit a report to Congress on an annual basis regarding 

instances where state self-insurance of state owned infrastructure 

was insufficient to cover the cost of flood damage. 

Section 39. Post disaster building safety assessment 

This section requires FEMA to work with state and local entities 

to establish guidance for building safety assessments by licensed 

architects and engineers post disaster. FEMA must publish the 

guidance within one year of enactment. FEMA is also required to 

update the National Incident Management System to include the 

functions of architects, in order to ensure those functions include 

assisting communities with mitigating activities, post disaster recovery, and participating on building safety assessment teams. 

Section 40. FEMA updates on national preparedness assessment 

This section requires FEMA to submit a report to Congress providing an update on FEMA’s progress in completing a national preparedness assessment and identifying potential costs of establishing certain disaster response capabilities. The report must be 

provided within six months of enactment of this bill and every six 

months after until FEMA has completed the assessment. 

Section 41. FEMA report on duplication in non-natural disaster 

preparedness grant programs 

This section requires FEMA to submit a report within 180 days 

of enactment to Congress providing information on duplicative aspects of the non-natural disaster grant program and efforts to prevent such duplication. 

Section 42. Extension of unemployment assistance for the Commonwealth of Puerto Rico and the United States Virgin Islands 

This section requires the President to make individual unemployment assistance available for 52 weeks after the date of disaster 

declaration for the disasters declared for Hurricane Irma and Hurricane Maria in Puerto Rico and the U.S. Virgin Islands. 

Section 43. Study and report 

This section requires FEMA, in conjunction with the National 

Academy of Medicine, to conduct a study on best practices for mortality counts as a result of major disasters. This study will focus 

16 

on the timely and accurate count of mortality and accounting of 

causes and how this information can facilitate future disaster preparedness efforts. The report must be started within 90 days of enactment and completed within 2 years. 

Section 44. Review of assistance for damaged underground water 

infrastructure 

This section defines the term ‘‘public assistance grant program’’ 

based on sections from the bill. Within 60 days of enactment, 

FEMA is required to conduct a review of grants provided for damaged underground water infrastructure. FEMA must provide a report on this review within 180 days of enactment and implement 

any recommendations made in the report within 180 days of its release. 

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

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 27, 2018. 

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. 3041, the Disaster Recovery 

Reform Act of 2018. 

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

to provide them. The CBO staff contact is Robert Reese. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

S. 3041—Disaster Recovery Reform Act of 2018 

Summary: S. 3041 would amend and authorize appropriations for 

several programs administered by the Federal Emergency Management Agency (FEMA). CBO estimates that implementing the bill 

would cost $2.4 billion over the 2019–2023 period, assuming appropriation of the authorized and necessary amounts. 

CBO estimates that enacting S. 3041 would increase direct 

spending by $45 million over the 2019–2028 period and would decrease revenues by an insignificant amount in each year. Therefore, 

pay-as-you-go procedures apply. 

17 

CBO estimates that enacting S. 3041 would not increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

S. 3041 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary effect of S. 3041 is shown in the following table. The costs 

of the legislation fall within budget function 450 (community and 

regional development). 

18 

By fiscal year, in millions of dollars— 

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019– 2023 2019– 2028 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Emergency Management Grants: 

Authorization Level ................................................................................................................. 0 954 954 954 954 0 0 0 0 0 0 3,816 3,816 Estimated Outlays .................................................................................................................. 0 70 213 403 622 742 741 551 333 143 0 2,049 3,816 

Predisaster Mitigation Fund: 

Estimated Authorization Level ................................................................................................ 0 120 24 24 24 24 24 24 24 24 24 216 336 Estimated Outlays .................................................................................................................. 0 6 25 54 40 32 29 24 24 24 24 157 282 

In-Lieu Public Assistance Contributions: 

Estimated Authorization Level ................................................................................................ 0 21 21 21 21 21 21 21 21 21 21 105 210 Estimated Outlays .................................................................................................................. 0 21 21 21 21 21 21 21 21 21 21 105 210 

Assistance for Properties without Flood Insurance: 

Estimated Authorization Level ................................................................................................ 0 12 12 12 12 12 12 12 12 12 12 60 120 Estimated Outlays .................................................................................................................. 0 7 11 12 12 12 12 12 12 12 12 54 114 

Forgone Recoveries of Improper Payment: 

Estimated Authorization Level ................................................................................................ 0 8 6 6 4 3 0 0 0 0 0 27 27 Estimated Outlays .................................................................................................................. 0 5 6 6 5 4 1 0 0 0 0 26 27 

Wildfire Mitigation: 

Estimated Authorization Level ................................................................................................ 0 6 6 6 6 6 6 6 6 6 6 24 54 Estimated Outlays .................................................................................................................. 0 * 2 3 5 6 6 6 6 6 6 16 46 

Disaster Assistance Arbitration: 

Estimated Authorization Level ................................................................................................ 0 1 1 1 1 1 1 1 1 1 1 5 10 Estimated Outlays .................................................................................................................. 0 * 1 1 1 1 1 1 1 1 1 4 9 

Additional Reporting Requirements: 

Estimated Authorization Level ................................................................................................ 0 2 * * * * * * * * * 2 3 Estimated Outlays .................................................................................................................. 0 2 * * * * * * * * * 2 3 Total Increases: 

Estimated Authorization Level ....................................................................................... 0 1,124 1,024 1,024 1,022 67 64 64 64 64 64 4,261 4,582 Estimated Outlays ......................................................................................................... 9 111 279 500 705 818 811 615 397 207 64 2,413 4,507 

INCREASES OR DECREASES (¥) IN DIRECT SPENDING 

Disaster Unemployment Assistance Extension: 

Estimated Budget Authority ................................................................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0 Estimated Outlays .................................................................................................................. 0 30 0 0 0 0 0 0 0 0 0 30 30 

Assistance for Properties without Flood Insurance: 

Estimated Budget Authority ................................................................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0 Estimated Outlays .................................................................................................................. 0 10 4 1 0 0 0 0 0 0 0 15 15 

19 

Foregone Recoveries of Improper Payment: 

Estimated Budget Authority ................................................................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0 Estimated Outlays .................................................................................................................. 0 3 0 0 ¥1 ¥1 ¥1 0 0 0 0 1 0 

Total Change: 

Estimated Budget Authority .......................................................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0 Estimated Outlays ......................................................................................................... 0 43 4 1 ¥1 ¥1 ¥1 0 0 0 0 46 45 

Components may not sum to totals because of rounding; * = less than $500,000. 

20 

Basis of estimate: CBO assumes that S. 3041 will be enacted 

during fiscal year 2018 and that the authorized and necessary 

amounts will be appropriated for each year beginning in 2019. Estimated outlays are based on historical spending patterns. 

Spending subject to appropriation 

CBO estimates that implementing S. 3041 would cost $2.4 billion 

over the 2019–2023 period. 

Emergency Management Grants. S. 3041 would authorize the appropriation of $950 million annually through 2022 for FEMA to 

provide grants to states through the Emergency Management Performance Grant program. That program helps state, local, and tribal governments prepare for future disasters. In 2018, FEMA allocated $350 million for such grants. S. 3041 also would authorize 

the appropriation of $4 million annually through 2022 for FEMA 

to provide grants to the Emergency Management Assistance Compact. The compact provides assistance when a governor declares a 

disaster through a system that allows member states to send personnel, equipment, and commodities to help with response and recovery efforts in other member states. In 2018, FEMA provided $2 

million in such grants. 

CBO estimates that providing those grants would cost about $2.0 

billion over the 2019–2023 period and an additional $1.8 billion 

after 2023. 

Predisaster Mitigation Fund. S. 3041 would create the National 

Public Infrastructure Predisaster Mitigation Fund. For each major 

disaster declared after August 1, 2017, an amount equal to 6 percent of the total estimated funding FEMA expects to provide for 

certain disaster response grants would be transferred into the proposed fund from unobligated appropriated balances in the Disaster 

Relief Fund (DRF). The new fund would be used to provide technical and financial assistance to states and localities for hazard 

mitigation designed to reduce injury, loss of life, and damage and 

destruction of property. 

After enactment, CBO estimates, about $120 million—6 percent 

of the estimated $2 billion in relevant disaster response grants expected to be made for disasters declared since August 1, 2017— 

would be transferred to the proposed fund in 2019. In recent years, 

FEMA has been provided an average of $400 million a year for the 

relevant disaster response grants. Assuming that the Congress provides similar amounts in subsequent years, CBO estimates that 

$24 million (6 percent of $400 million) would be transferred to the 

fund each year. 

Because the provision does not change any underlying authority 

to provide disaster relief, in CBOs view the legislation implicitly 

authorizes the appropriation of amounts equal to the amounts that 

would be transferred from the DRF to the new fund. Thus, CBO 

estimates that spending under this section would total $157 million 

over the 2019–2023 period. 

In-Lieu Public Assistance Contributions. Under current law, public or private nonprofit entities that own facilities that are substantially damaged during a major disaster have the option of receiving 

grants to repair the facility or a percentage of the grant amount 

as an in-lieu contribution for use on other restoration projects. The 

21 

total in-lieu contribution is 90 percent of repair costs for public facilities and 75 percent for private nonprofit facilities. 

S. 3041 would increase the maximum in-lieu contributions for 

both public and private nonprofit entities to 100 percent of the 

total grant amount. Using historical data provided by FEMA on 

such in-lieu awards, CBO estimates that implementing this section 

would cost $105 million over the 2019–2023 period. 

Assistance for Properties without Flood Insurance. Under current 

law, a public or private nonprofit facility located within an area 

designated as having at least a 1 percent chance of being flooded 

in any year and that is not covered by flood insurance (either 

through FEMAs National Flood Insurance Program or through a 

private company) will see its assistance reduced in the event of 

flooding in a major disaster. In those cases, the assistance for each 

building of a multi-structure complex is reduced by the amount of 

insurance proceeds that FEMA estimates the public or nonprofit 

entity could have received if it were insured. Under S. 3041, that 

reduction in assistance would not be applied to more than one 

building of a multi-structure educational, law enforcement, correctional, fire, or medical campus. 

Using historical data provided by FEMA, CBO estimates that im- plementing this section would cost $54 million over the 2019–2023 

period. The bill also would make that change retroactive to all 

flooding disasters since January 2016, which would increase direct 

spending as discussed below under the heading Direct Spending. 

Forgone Recoveries of Improper Payments. CBO estimates that 

prohibiting FEMA from recouping certain improper payments 

would reduce direct spending by $27 million over the next 10 years. 

(See the discussion under the heading Direct Spending.) Under current law, recouped amounts are deposited in the DRF and subsequently spent on recovery costs for future disasters. Because the 

provision does not change any underlying authority to provide disaster relief, in CBOs view the bill implicitly authorizes the appropriation of amounts equal to the forgone funds. Thus, CBO estimates that implementing the provision would cost $26 million over 

the 2019–2023 period. 

Wildfire Mitigation. S. 3041 would authorize assistance for hazard mitigation in areas affected by wildfires. Under current law, 

FEMA may provide hazard mitigation funds to areas where the 

President has declared a major disaster. Under the bill, FEMA 

would be authorized to provide funds to areas affected by wildfires, 

regardless of whether the President has declared a major disaster. 

Using information provided by FEMA, CBO estimates that providing additional assistance would require annual appropriations of 

$6 million and would cost $16 million over the 2019–2023 period. 

Disaster Assistance Arbitration. The bill would authorize the Civilian Board of Contract Appeals to arbitrate a determination of 

disaster assistance made by FEMA if an applicant for disaster assistance requests such arbitration. Using information from FEMA 

on the expected number of arbitration requests, CBO estimates 

that implementing this provision would cost $4 million over the 

2019–2023 period. 

Additional Reporting Requirements. S. 3041 would require 

FEMA to issue six new regulations, eight new guidance documents, 

and 26 new reports to the Congress over the next five years. Based 

22 

on the costs of preparing similar reports and regulations, CBO estimates that meeting those requirements would cost $2 million over 

the 2019–2023 period. 

Direct Spending 

CBO estimates that enacting S. 3041 would increase direct spending by $45 million over the 2019–2028 period. 

Disaster Unemployment Assistance Extension. S. 3041 would direct FEMA to extend the period that people in Puerto Rico and the 

U.S. Virgin Islands who were affected by Hurricanes Irma and 

Maria can receive Disaster Unemployment Assistance (DUA). 

Under current law, DUA can be provided for up to 26 weeks from 

the date of the disaster declaration. Under the bill, that period 

would be extended to 52 weeks from the declaration date and 

would allow DUA to be provided retroactively to people who would 

have been eligible for such assistance beyond the 26-week period 

allowed under current law. Using information from FEMA and the 

Department of Labor on the number of people who would have 

been eligible for such assistance and the expected length of time 

they could have received that assistance, CBO estimates that enacting this provision would increase spending of previously appropriated DRF funds by $30 million in 2019. (Under current law, 

CBO estimates that those amounts would otherwise outlay after 

2028.) 

Assistance for Properties without Flood Insurance. As described 

above under the heading Spending Subject to Appropriation, the 

bill would increase the amount of assistance that certain public or 

private nonprofit entities can receive if they suffer flood losses at 

multi-structure facilities that are not covered by flood insurance. 

That provision would be retroactive for flood losses that have occurred since January 2016. 

Using data provided by FEMA on the amount of assistance that 

was reduced for the relevant types of structures between 2016 and 

2018, CBO estimates that enacting this section would increase 

spending of previously appropriated DRF funds by $15 million over 

the 2019–2028 period. (Under current law, CBO estimates that 

those amounts would otherwise outlay after 2028.) 

Forgone Recoveries of Improper Payments. Under current law, 

FEMA must recoup any improper payments made for disaster assistance. Improper payments can result from, among other things, 

duplication of benefits (for example, receipt of two insurance payments for the same damage), processing errors, or fraud. All payments received through the recovery process are deposited in the 

DRF and may be spent on future disasters without further appropriation. Under S. 3041, improper payments made to individuals 

would have to be recouped within three years of their disbursement. That limitation would not apply where there is evidence of 

fraud. 

The Government Accountability Office reported that about 3 percent of the approximately $1.6 billion spent by FEMA for individual assistance between 2012 and 2014 for Hurricane Sandy relief were improper or fraudulent. Based on a review of that report, 

CBO estimates that few of those payments (less than 5 percent) 

were the result of fraud. Using information from FEMA about the 

recoupment rate for improper payments after previous major disasVerDate Sep 11 2014 01:12 Jan 03, 2019 Jkt 089010 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\SR446.XXX SR446
23 

ters, CBO expects that about 35 percent of those payments have 

been recovered. Thus, CBO estimates that about $27 million in improper payments for individual assistance that are in the process 

of being recouped would no longer be collected under S. 3041. However, because those amounts would have been available to FEMA 

for future disaster relief payments without further appropriation, 

fewer collections also would reduce outlays, resulting in no net effect on direct spending over the 2019–2028 period. However, because spending lags recoupments, there would be a $1 million cost 

over the 2019–2023 period. 

The bill also would allow FEMA to waive the recovery of improper individual assistance payments on a case-by-case basis, so 

long as the improper payment was not made as a result of fraud. 

As of July 2018, FEMA has not identified a significant amount of 

improper payments for individual assistance that were made within the last three years. (Improper payments made more than three 

years ago would be covered by the limitation discussed above.) Furthermore, CBO has no basis to estimate the timing or magnitude 

of waivers that would be made under S. 3041 for recovery of improper payments that have not yet been disbursed. Thus, CBO does 

not estimate any additional forgone recoupments associated with 

the waiver authority that would be provided under the bill. 

Revenues 

S. 3041 would authorize the Department of State to waive certain fees associated with applications for the replacement of passports if the person applying for such a document lost their original 

passport in a major disaster. Portions of the passport replacement 

application fee are remitted to the Treasury and recorded in the 

budget as revenues. Using information from FEMA on the number 

of individuals that would qualify for such waivers, CBO estimates 

that any loss of revenues from those waivers would not be significant in any year. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. (The revenue effects are not 

significant and are not shown in the table.) 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 3041, THE DISASTER RECOVERY REFORM ACT 

OF 2018, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS ON JUNE 13, 2018 

By fiscal year, in millions of dollars— 

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2018– 

2023 

2018– 

2028 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Impact .... 0 43 4 1 ¥1 ¥1 ¥1 0 0 0 0 46 45 

Increase in long-term direct spending and deficits: CBO estimates that enacting S. 3041 would not increase net direct spending 

or on-budget deficits in any of the four consecutive 10-year periods 

beginning in 2029. 

24 

Mandates: S. 3041 contains no intergovernmental or private-sector mandates as defined in UMRA. 

Previous CBO estimate: On March 8, 2018, CBO transmitted an 

estimate for H.R. 4460, the Disaster Recovery Reform Act, as ordered reported by the House Committee on Transportation and Infrastructure on November 30, 2017. Several of the provisions in S. 

3041 are similar to those in H.R. 4460. Differences in CBO’s estimates of the two pieces of legislation stem from differences in the 

text of the legislation and new information that CBO has obtained 

since we transmitted the estimate for H.R. 4460. 

Estimate prepared by: Federal costs: Robert Reese; Federal revenues: Sunita D’Monte; Mandates: Rachel Austin. 

Estimate reviewed by: Kim P. Cawley, Chief, Natural and Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, Deputy 

Assistant Director for Budget Analysis. 

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

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows: (existing law proposed to be omitted 

is enclosed in brackets, new matter is printed in italic, and existing 

law in which no change is proposed is shown in roman): 

ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE 

ACT 

* * * * * * * 

TITLE I—FINDINGS, DECLARATIONS, AND 

DEFINITIONS 

* * * * * * * 

SEC. 102. DEFINITIONS. 

As used in this Act— 

(1) * * * 

* * * * * * * 

(11) PRIVATE NONPROFIT FACILITY.— 

(A) * * * 

(B) ADDITIONAL FACILITIES.—In addition to the facilities 

described in subparagraph (A), the term ‘‘private nonprofit 

facility’’ includes any private nonprofit facility that provides essential social services to the general public (including museums, zoos, performing arts facilities, community 

arts centers, community centers, libraries, homeless shelters, senior citizen centers, rehabilitation facilities, shelter 

workshops, food banks, broadcasting facilities, houses of 

worship, and facilities that provide health and safety services of a governmental nature), as defined by the President. No house of worship may be excluded from this definition because leadership or membership in the organizaVerDate Sep 11 2014 01:12 Jan 03, 2019 Jkt 089010 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\SR446.XXX SR446
25 

tion operating the house of worship is limited to persons 

who share a religious faith or practice. 

* * * * * * * 

TITLE II—DISASTER PREPAREDNESS AND 

MITIGATION ASSISTANCE 

* * * * * * * 

SEC. 203. PREDISASTER HAZARD MITIGATION. 

(a) * * * 

(b) * * * 

(c) APPROVAL BY PRESIDENT.—If the President determines that a 

State or local government has identified natural disaster hazards 

in areas under its jurisdiction and has demonstrated the ability to 

form effective public-private natural disaster hazard mitigation 

partnerships, the President, using amounts in the National Public 

Infrastructure Predisaster Mitigation Fund established under subsection (i) of this section (referred to in this section as the ‘‘Fund’’), 

may provide technical and financial assistance to the State or local 

government to be used in accordance with subsection (e) of this section. 

* * * * * * * 

(e) USES OF TECHNICAL AND FINANCIAL ASSISTANCE.— (1) IN GENERAL.—Technical and financial assistance provided 

under this section— 

(A) * * * 

(B) may be used— 

(i) to support effective public-private natural disaster hazard mitigation partnerships; 

(ii) to improve the assessment of a community’s vulnerability to natural hazards; øor¿ 

(iii) to establish hazard mitigation priorities, and an 

appropriate hazard mitigation plan, for a 

communityø.¿; or 

(iv) to establish, adopt, and carry out enforcement activities to implement the latest published editions of 

relevant consensus-based codes, specifications, and 

standards that incorporate the latest hazard-resistant 

designs and establish minimum acceptable criteria for 

the design, construction, and maintenance of residential structures and facilities that may be eligible for assistance under this Act for the purpose of protecting the 

health, safety, and general welfare of the buildings’ 

users against disasters. 

(2) * * * 

(f) ALLOCATION OF FUNDS.— 

(1) IN GENERAL.— The President shall award financial assistance under this section on a competitive basis for mitigation 

activities that are cost effective and in accordance with the criteria in subsection (g). 

* * * * * * * 

(3) REDISTRIBUTION OF UNOBLIGATED AMOUNTS.—The President may— 

26 

(A) withdraw amounts of financial assistance made 

available to a State (including amounts made available to 

local governments of a State) under this subsection that remain unobligated by the end of the third fiscal year after 

the fiscal year for which the amounts were allocated; and 

(B) in the fiscal year following a fiscal year in which 

amounts were withdrawn under subparagraph (A), add the 

amounts to any other amounts available to be awarded on 

a competitive basis pursuant to paragraph (1). 

(g) CRITERIA FOR ASSISTANCE AWARDS.—In determining whether 

to provide technical and financial assistance to a State or local government under this section, the President shall take into account— 

(1) * * * 

* * * * * * * 

(9) the extent to which assistance will fund mitigation activities in small impoverished communities; øand¿ 

(10) the extent to which the State or local government has facilitated the adoption and enforcement of the latest published 

editions of relevant consensus-based codes, specifications, and 

standards that incorporate the latest hazard-resistant designs 

and establish criteria for the design, construction, and maintenance of residential structures and facilities that may be eligible for assistance under this Act for the purpose of protecting 

the health, safety, and general welfare of the buildings’ users 

against disasters; 

(11) the extent to which the assistance will fund activities 

that increase the level of resiliency; and 

ø(10)¿ (12) such other criteria as the President establishes in 

consultation with State and local governments. 

* * * * * * * 

ø(i) NATIONAL PREDISASTER MITIGATION FUND.— 

ø(1) ESTABLISHMENT.—The President may establish in the 

Treasury of the United States a fund to be known as the ‘‘National Predisaster Mitigation Fund’’, to be used in carrying out 

this section. 

ø(2) TRANSFERS TO FUND.—There shall be deposited in the 

Fund— 

ø(A) amounts appropriated to carry out this section, 

which shall remain available until expended; and 

ø(B) sums available from gifts, bequests, or donations of 

services or property received by the President for the purpose of predisaster hazard mitigation. 

ø(3) EXPENDITURES FROM FUND.—Upon request by the President, the Secretary of the Treasury shall transfer from the 

Fund to the President such amounts as the President determines are necessary to provide technical and financial assistance under this section. 

ø(4) INVESTMENT OF AMOUNTS.— 

ø(A) IN GENERAL.—The Secretary of the Treasury shall 

invest such portion of the Fund as is not, in the judgment 

of the Secretary of the Treasury, required to meet current 

withdrawals. Investments may be made only in interestbearing obligations of the United States. 

27 

ø(B) ACQUISITION OF OBLIGATIONS.—For the purpose of 

investments under subparagraph (A), obligations may be 

acquired— 

ø(i) on original issue at the issue price; or 

ø(ii) by purchase of outstanding obligations at the 

market price. 

ø(C) SALE OF OBLIGATIONS.—Any obligation acquired by 

the Fund may be sold by the Secretary of the Treasury at 

the market price. 

ø(D) CREDITS TO FUND.—The interest on, and the proceeds from the sale or redemption of, any obligations held 

in the Fund shall be credited to and form a part of the 

Fund. 

ø(E) TRANSFERS OF AMOUNTS.— 

ø(i) IN GENERAL.—The amounts required to be transferred to the Fund under this subsection shall be 

transferred at least monthly from the general fund of 

the Treasury to the Fund on the basis of estimates 

made by the Secretary of the Treasury. 

ø(ii) ADJUSTMENTS.—Proper adjustment shall be 

made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the 

amounts required to be transferred.¿ 

(i) NATIONAL PUBLIC INFRASTRUCTURE PREDISASTER MITIGATION

ASSISTANCE.— 

(1) IN GENERAL.—The President may set aside from the Disaster Relief Fund, with respect to each major disaster, an 

amount equal to 6 percent of the estimated aggregate amount 

of the grants to be made pursuant to sections 403, 406, 407, 

408, 410, 416, and 428 for the major disaster in order to provide technical and financial assistance under this section. 

(2) ESTIMATED AGGREGATE AMOUNT.—Not later than 180 

days after each major disaster declaration pursuant to this Act, 

the estimated aggregate amount of grants for purposes of paragraph (1) shall be determined by the President and such estimated amount need not be reduced, increased, or changed due 

to variations in estimates. 

(3) NO REDUCTION IN AMOUNTS.—The amount set aside pursuant to paragraph (1) shall not reduce the amounts otherwise 

made available for sections 403, 404, 406, 407, 408, 410, 416, 

and 428 under this Act. 

ø(j) LIMITATION ON TOTAL AMOUNT OF FINANCIAL ASSISTANCE.— 

The President shall not provide financial assistance under this section in an amount greater than the amount available in the Fund.¿ 

ø(k)¿ (j) MULTIHAZARD ADVISORY MAPS.— 

* * * * * * * 

ø(l)¿ (k) REPORT ON FEDERAL AND STATE ADMINISTRATION.— 

* * * 

ø(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section— 

ø(1) $180,000,000 for fiscal year 2011; 

ø(2) $200,000,000 for fiscal year 2012; 

ø(3) $200,000,000 for fiscal year 2013.¿ 

28 

ø(n)¿ (l) PROHIBITION ON EARMARKS.— 

* * * * * * * 

TITLE III—MAJOR DISASTER AND EMERGENCY 

ASSISTANCE ADMINISTRATION 

* * * * * * * 

SEC. 306. PERFORMANCE OF SERVICES. 

(a) * * * 

* * * * * * * 

(c) The Administrator of the Federal Emergency Management 

Agency is authorized to appoint temporary personnel, after serving 

continuously for 3 years, to positions in the Federal Emergency 

Management Agency in the same manner that competitive service 

employees with competitive status are considered for transfer, reassignment, or promotion to such positions. An individual appointed 

under this subsection shall become a career-conditional employee, 

unless the employee has already completed the service requirements 

for career tenure. 

* * * * * * * 

SEC. 309. USE AND COORDINATION OF RELIEF ORGANIZATIONS. 

(a) In providing relief and assistance under this Act, the President may utilize, with their consent, the personnel and facilities of 

the American National Red Cross, the Salvation Army, the Mennonite Disaster Service, and øother relief or¿ long-term recovery 

groups, domestic hunger relief, and other relief, or disaster assistance organizations, in the distribution of medicine, food, supplies, 

or other items, and in the restoration, rehabilitation, or reconstruction of community services housing and essential facilities, whenever the President finds that such utilization is necessary. 

(b) The President is authorized to enter into agreements with the 

American National Red Cross, the Salvation Army, the Mennonite 

Disaster Service, and øother relief or¿ long-term recovery groups, 

domestic hunger relief, and other relief, or disaster assistance organizations under which the disaster relief activities of such organizations may be coordinated by the Federal coordinating officer 

whenever such organizations are engaged in providing relief during 

and after a major disaster or emergency. Any such agreement shall 

include provisions assuring that use of Federal facilities, supplies, 

and services will be in compliance with regulations prohibiting duplication of benefits and guaranteeing nondiscrimination promulgated by the President under this Act, and such other regulation 

as the President may require. 

* * * * * * * 

SEC. 311. INSURANCE. 

* * * * * * * 

(d) REPORT ON INSURANCE SHORTFALLS.—Not later than 2 years 

after the date of enactment of this subsection, and each year thereafter, the Administrator of the Federal Emergency Management 

Agency shall submit a report to Congress on the number of instances and the estimated amounts involved, by State, for cases in 

29 

which self-insurance amounts have been insufficient to address 

flood damages. 

* * * * * * * 

SEC. 312. DUPLICATION OF BENEFITS. 

(a) * * * 

(b) SPECIAL RULES.— 

(1) * * * 

(2) * * * 

(3) * * * 

(4) WAIVER OF GENERAL PROHIBITION.— 

(A) IN GENERAL.—The President may waive the general 

prohibition provided in subsection (a) upon request of a 

Governor on behalf of the State or on behalf of a person, 

business concern, or any other entity suffering losses as a 

result of a major disaster or emergency, if the President 

finds such waiver is in the public interest and will not result in waste, fraud, or abuse. In making this decision, the 

President may consider the following: 

(i) The recommendations of the Administrator of the 

Federal Emergency Management Agency made in consultation with the Federal agency or agencies administering the duplicative program. 

(ii) If a waiver is granted, the assistance to be funded is cost effective. 

(iii) Equity and good conscience. 

(iv) Other matters of public policy considered appropriate by the President. 

(B) GRANT OR DENIAL OF WAIVER.—A request under subparagraph (A) shall be granted or denied not later than 45 

days after submission of such request. 

* * * * * * * 

SEC. 322. MITIGATION PLANNING. 

* * * * * * * 

(e) INCREASED FEDERAL SHARE FOR HAZARD MITIGATION MEASURES.— 

(1) IN GENERAL.—If, at the time of the declaration of a major 

disaster or event under section 420, a State has in effect an approved mitigation plan under this section, the President may 

increase to 20 percent, with respect to the major disaster or 

event under section 420, the maximum percentage specified in 

the last sentence of section 404(a). 

* * * * * * * 

SEC. 324. MANAGEMENT COSTS. 

(a) DEFINITION OF MANAGEMENT COST.—In this section, the term 

‘‘management cost’’ includes any indirect cost, øany administrative 

expense, and any other expense not directly chargeable to¿ any direct administrative cost, and any other administrative expense associated with a specific project under a major disaster, emergency, or 

disaster preparedness or mitigation activity or measure. 

(b) ESTABLISHMENT OF MANAGEMENT COST RATES.—øNotwithstanding¿ 

30 

(1) IN GENERAL.—Notwithstanding any other provision of law 

(including any administrative rule or guidance), the President 

shall by regulation øestablish¿ implement management cost 

rates, for grantees and subgrantees, that shall be used to determine contributions under this Act for management costs. 

(2) SPECIFIC MANAGEMENT COSTS.—The Administrator of 

Federal Emergency Management Agency shall provide the following percentage rates, in addition to the eligible project costs, 

to cover direct and indirect costs of administering the following 

programs: 

(A) HAZARD MITIGATION.—A grantee under section 404 

may be reimbursed not more than 15 percent of the total 

amount of the grant award under such section of which not 

more than 10 percent may be used by the grantee and 5 

percent by the subgrantee for such costs. 

(B) PUBLIC ASSISTANCE.—A grantee under sections 403, 

406, 407, and 502 may be reimbursed not more than 12 

percent of the total award amount under such sections, of 

which not more than 7 percent may be used by the grantee 

and 5 percent by the subgrantee for such costs. 

* * * * * * * 

TITLE IV—MAJOR DISASTER ASSISTANCE 

PROGRAMS 

* * * * * * * 

SEC. 402. GENERAL FEDERAL ASSISTANCE. 

In any major disaster, the President may— 

(1) * * * 

(2) * * * 

(3) * * * 

(4) assist State and local governments in the distribution of 

medicine, food, and other consumable supplies, and emergency 

assistance; øand¿ 

(5) provide assistance to State and local governments for 

building code and floodplain management ordinance administration and enforcement, including inspections for substantial 

damage compliance; and 

ø(5)¿ (6) provide accelerated Federal assistance and Federal 

support where necessary to save lives, prevent human suffering, or mitigate severe damage, which may be provided in 

the absence of a specific request and in which case the President— 

(A) * * * 

(B) * * * 

SEC. 404. HAZARD MITIGATION. 

(a) IN GENERAL.—øThe President may contribute up to 75 percent of the cost of hazard mitigation measures which the President 

has determined are cost-effective and which substantially reduce 

the risk of future damage, hardship, loss, or suffering in any area 

affected by a major disaster.¿ The President may contribute up to 

75 percent of the cost of hazard mitigation measures which the 

President has determined are cost-effective and which substantially 

31 

reduce the risk of, or increase resilience to, future damage, hardship, loss, or suffering in any area affected by a major disaster, or 

any area affected by a fire for which assistance was provided under 

section 420. Such measures shall be identified following the evaluation of natural hazards under section 322 and shall be subject to 

approval by the President. Subject to section 322, the total of contributions under this section for a major disaster or event under 

section 420 shall not exceed 15 percent for amounts not more than $2,000,000,000, 10 percent for amounts of more than 

$2,000,000,000 and not more than $10,000,000,000, and 7.5 percent 

on amounts of more than $10,000,000,000 and not more than 

$35,333,000,000 of the estimated aggregate amount of grants to be 

made (less any associated administrative costs) under this Act with 

respect to the major disaster or event under section 420. 

* * * * * * * 

(f) USE OF ASSISTANCE.—Recipients of hazard mitigation assistance provided under this section and section 203 may use the assistance to conduct activities to help reduce the risk of future damage, 

hardship, loss, or suffering in any area affected by a wildfire or 

windstorm, such as— 

(1) reseeding ground cover with quick-growing or native species; 

(2) mulching with straw or chipped wood; 

(3) constructing straw, rock, or log dams in small tributaries 

to prevent flooding; 

(4) placing logs and other erosion barriers to catch sediment 

on hill slopes; 

(5) installing debris traps to modify road and trail drainage 

mechanisms; 

(6) modifying or removing culverts to allow drainage to flow 

freely; 

(7) adding drainage dips and constructing emergency spillways to keep roads and bridges from washing out during 

floods; 

(8) planting grass to prevent the spread of noxious weeds; 

(9) installing warning signs; 

(10) establishing defensible space measures; 

(11) reducing hazardous fuels; 

(12) mitigating windstorm damage, including replacing or installing electrical transmission or distribution utility pole structures with poles that are resilient to extreme wind and combined ice and wind loadings for the basic wind speeds and ice 

conditions associated with the relevant location; 

(13) removing standing burned trees; and 

(14) replacing water systems that have been burned and have 

caused contamination. 

(g) USE OF ASSISTANCE.—Recipients of hazard mitigation assistance provided under this section and section 203 may use the assistance to conduct activities to help reduce the risk of future damage, 

hardship, loss, or suffering in any area affected by earthquake hazards, including— 

(1) improvements to regional seismic networks in support of 

building a capability for earthquake early warning; 

(2) improvements to geodetic networks in support of building 

a capability for earthquake early warning; and 

32 

(3) improvements to seismometers, Global Positioning System 

receivers, and associated infrastructure in support of building 

a capability for earthquake early warning. 

* * * * * * * 

SEC. 406. REPAIR, RESTORATION, AND REPLACEMENT OF DAMAGED 

FACILITIES. 

(a) CONTRIBUTIONS.— (1) * * * 

(2) ASSOCIATED EXPENSES.—For the purposes of this section, 

associated expenses shall include— 

(A) * * * 

(B) the costs of using prison labor to perform eligible 

work, including wages actually paid, transportation to a 

worksite, and extraordinary costs of guards, food, and lodging; øand¿ 

(C) base and overtime wages for the employees and extra 

hires of a State, local government, or person described in 

paragraph (1) that perform eligible work, plus fringe benefits on such wages to the extent that such benefits were 

being paid before the major disasterø.¿; and 

(D) base and overtime wages for extra hires to facilitate 

the implementation and enforcement of adopted building 

codes for a period of not more than 180 days after the 

major disaster is declared. 

(3) CONDITIONS FOR ASSISTANCE TO PRIVATE NONPROFIT FA- CILITIES.— 

* * * * * * * 

(B) DEFINITION OF CRITICAL SERVICES.—In this paragraph, the term ‘‘critical services’’ includes power, water 

(including water provided by an irrigation organization or 

facility), sewer, wastewater treatment, communications, 

education (including private nonprofit center-based 

childcare), and emergency medical care. 

* * * * * * * 

(c) LARGE IN-LIEU CONTRIBUTIONS.— 

(1) FOR PUBLIC FACILITIES.— 

(A) IN GENERAL.—In any case in which a State or local 

government determines that the public welfare would not 

best be served by repairing, restoring, reconstructing, or 

replacing any public facility owned or controlled by the 

State or local government, the State or local government 

may elect to receive, in lieu of a contribution under subsection (a)(1)(A), a contribution in an amount equal to ø90 

percent of¿ the Federal share of the Federal estimate of 

the cost of repairing, restoring, reconstructing, or replacing 

the facility and of management expenses. 

* * * * * * * 

(2) FOR PRIVATE NONPROFIT FACILITIES.— 

(A) IN GENERAL.—In any case in which a person that 

owns or operates a private nonprofit facility determines 

that the public welfare would not best be served by repairing, restoring, reconstructing, or replacing the facility, the 

person may elect to receive, in lieu of a contribution under 

33 

subsection (a)(1)(B), a contribution in an amount equal to 

ø75 percent of¿ the Federal share of the Federal estimate 

of the cost of repairing, restoring, reconstructing, or replacing the facility and of management expenses. 

* * * * * * * 

(d) FLOOD INSURANCE.— 

(1) REDUCTION OF FEDERAL ASSISTANCE.—If a public facility 

or private nonprofit facility located in a special flood hazard 

area identified for more than 1 year by the Administrator pursuant to the National Flood Insurance Act of 1968 (42 U.S.C. 

4001 et seq.) is damaged or destroyed, after the 180th day following November 23, 1988, by flooding in a major disaster and 

such facility is not covered on the date of such flooding by flood 

insurance, the Federal assistance which would otherwise be 

available under this section with respect to repair, restoration, 

reconstruction, and replacement of such facility and associated 

expenses shall be reduced in accordance with paragraph (2). 

This section shall not apply to more than 1 building of a multistructure educational, law enforcement, correctional, fire, or 

medical campus, effective January 1, 2016. 

* * * * * * * 

(e) ELIGIBLE COST.— 

(1) DETERMINATION.— 

(A) IN GENERAL.—For the purposes of this section, for 

disasters declared on or after August 1, 2017, or a disaster 

in which a cost estimate has not yet been finalized for a 

project, the President shall estimate the eligible cost of repairing, restoring, reconstructing, or replacing a public facility or private nonprofit facility— 

(i) on the basis of the design of the facility as the facility existed immediately before the major disaster; 

øand¿ 

(ii) in conformity with øcodes, specifications, and 

standards¿ the latest published editions of relevant 

consensus-based codes, specifications, and standards 

that incorporate the latest hazard-resistant designs 

and establish minimum acceptable criteria for the design, construction, and maintenance of residential 

structures and facilities that may be eligible for assistance under this Act for the purposes of protecting the 

health, safety, and general welfare of a facility’s users 

against disasters (including floodplain management 

and hazard mitigation criteria required by the President or under the Coastal Barrier Resources Act (16 

U.S.C. 3501 et seq.)) øapplicable at the time at which 

the disaster occurred.¿; and 

(iii) in a manner that allows the facility to meet the 

definition of resilient developed pursuant to this subsection. 

* * * * * * * 

34 

(C) CONTRIBUTIONS.—Contributions for the eligible cost 

made under this section may be provided on an actual cost 

basis or on cost-estimation procedures. 

* * * * * * * 

(5) NEW RULES.— 

(A) IN GENERAL.—Not later than 18 months after the 

date of enactment of this paragraph, the President, acting 

through the Administrator of the Federal Emergency Management Agency, and in consultation with the heads of relevant Federal departments and agencies, shall issue a final 

rulemaking that defines the terms ‘resilient’ and ‘resiliency’ 

for purposes of this subsection. 

(B) INTERIM GUIDANCE.—Not later than 60 days after the 

date of enactment of this paragraph, the Administrator 

shall issue interim guidance to implement this subsection. 

Such interim guidance shall expire 18 months after the 

date of enactment of this paragraph or upon issuance of 

final regulations pursuant to subparagraph (A), whichever 

occurs first. 

(C) GUIDANCE.—Not later than 90 days after the date on 

which the Administrator issues the final rulemaking under 

this paragraph, the Administrator shall issue any necessary guidance related to the rulemaking. 

(D) REPORT.—Not later than 2 years after the date of enactment of this paragraph, the Administrator shall submit 

to Congress a report summarizing the regulations and 

guidance issued pursuant to this paragraph. 

* * * * * * * 

SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS. 

* * * * * * * 

(c) TYPES OF HOUSING ASSISTANCE.— 

(1) TEMPORARY HOUSING.— 

(A) * * * 

(i) * * * 

(ii) * * * 

(B) DIRECT ASSISTANCE.— 

(i) * * * 

(ii) LEASE AND REPAIR OF RENTAL UNITS FOR TEMPORARY HOUSING.— 

(I) IN GENERAL.—The President, to the extent 

the President determines it would be a cost-effective alternative to other temporary housing options, may— 

ø(aa) enter into lease agreements with owners of multifamily rental property located in 

areas covered by a major disaster declaration 

to house individuals and households eligible 

for assistance under this section; and¿ 

(aa) enter into lease agreements with owners 

of multifamily rental property impacted by a 

major disaster or located in areas covered by 

a major disaster declaration to house individVerDate Sep 11 2014 01:12 Jan 03, 2019 Jkt 089010 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\SR446.XXX SR446
35 

uals and households eligible for assistance 

under this section; and 

(bb) * * * 

ø(II) IMPROVEMENTS OR REPAIRS.—Under the 

terms of any lease agreement for property entered 

into under this subsection, the value of the improvements or repairs.— 

ø(aa) shall be deducted from the value of 

the lease agreement; and 

ø(bb) may not exceed the value of the lease 

agreement.¿ 

(II) IMPROVEMENTS OR REPAIRS.—Under the 

terms of any lease agreement for property entered 

into under this subsection, the value of the improvements or repairs shall be deducted from the 

value of the lease agreement. 

* * * * * * * 

(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER NEEDS.— (1) * * * 

(2) * * * 

(3) CRITICAL DOCUMENT FEE WAIVER.— (A) IN GENERAL.—Notwithstanding section 1 of the Passport Act of June 4, 1920 (22 U.S.C. 214) or any other provision of law, the President, in consultation with the Governor of a State, may provide a waiver under this section 

to an individual or household described in paragraph (1) 

of the following document replacement fees: 

(i) The passport application fee for individuals who 

lost their United States passport. 

(ii) The file search fee for a United States passport. 

(iii) The Application for Waiver of Passport and/or 

Visa form (Form I–193) fee. 

(iv) The Permanent Resident Card replacement form 

(Form I–90) filing fee. 

(v) The Declaration of Intention form (Form N–300) 

filing fee. 

(vi) The Naturalization/Citizenship Document replacement form (Form N–565) filing fee. 

(vii) The Employment Authorization form (Form I– 

765) filing fee. 

(viii) The biometric service fee. 

(B) EXEMPTION FROM FORM REQUIREMENT.—The authority of the President to waive fees under clauses (iii) through 

(viii) of subparagraph (A) applies regardless of whether the 

individual or household qualifies for a Form I–912 Request 

for Fee Waiver, or any successor thereto. 

(C) EXEMPTION FROM ASSISTANCE MAXIMUM.—The assistance limit in subsection (h) shall not apply to any fee 

waived under this paragraph. 

(D) REPORT.—Not later than 365 days after the date of 

enactment of this paragraph, the Administrator of the Federal Emergency Management Agency and the head of any 

other agency given critical document fee waiver authority 

under this paragraph shall submit a report to the Committee on Homeland Security and Governmental Affairs of 

36 

the Senate and the Committee on Transportation and Infrastructure of the House of Representatives on the costs associated with providing critical document fee waivers as described in subparagraph (A). 

(f) STATE ROLE.— (1) øFINANCIAL ASSISTANCE TO ADDRESS OTHER NEEDS.¿ 

STATE- OR TRIBAL-ADMINISTERED ASSISTANCE AND OTHER

NEEDS ASSISTANCE.— (A) GRANT TO STATE.—Subject to subsection (g), a Governor may request a grant from the President to provide 

øfinancial¿ assistance to individuals and households in the 

State under øsubsection (e)¿ subsections (c)(1)(B), (c)(4), 

and (e) if the President and the State or Tribal government 

comply, as determined by the Administrator, with paragraph (3). (B) ADMINISTRATIVE COSTS.—A State that receives a 

grant under subparagraph (A) may expend not more than 

5 percent of the amount of the grant for the administrative 

costs of providing øfinancial¿ assistance to individuals and 

households in the State under øsubsection (e)¿ subsections 

(c)(1)(B), (c)(4), and (e). 

(2) * * * 

(3) REQUIREMENTS.— (A) APPLICATION.—A State or Tribal government desiring 

to provide assistance under subsection (c)(1)(B), (c)(4), or (e) 

shall submit to the President an application for a grant to 

provide financial assistance under the program. 

(B) CRITERIA.—The President, in consultation and coordination with State and Tribal governments, shall establish criteria for the approval of applications submitted 

under subparagraph (A). The criteria shall include, at a 

minimum— 

(i) a requirement that the State or Tribal government 

submit a housing strategy under subparagraph (C); 

(ii) the demonstrated ability of the State or Tribal 

government to manage the program under this section; 

(iii) there being in effect a plan approved by the 

President as to how the State or Tribal government 

will comply with applicable Federal laws and regulations and how the State or Tribal government will provide assistance under its plan; 

(iv) a requirement that the State or Tribal government comply with rules and regulations established 

pursuant to subsection (j); and 

(v) a requirement that the President, or the designee 

of the President, comply with subsection (i). 

(C) REQUIREMENT OF HOUSING STRATEGY.— 

(i) IN GENERAL.—A State or Tribal government submitting an application under this paragraph shall 

have an approved housing strategy, which shall be developed and submitted to the President for approval. 

(ii) REQUIREMENTS.—The housing strategy required 

under clause (i) shall— 

(I) outline the approach of the State in working 

with Federal partners, Tribal governments, local 

37 

communities, non-governmental organizations, and 

individual disaster survivors to meet disaster-related sheltering and housing needs; and 

(II) include the establishment of an activation 

plan for a State Disaster Housing Task Force, as 

outlined in the National Disaster Housing Strategy, to bring together State, Tribal, local, Federal, 

non-governmental, and private sector expertise to 

evaluate housing requirements, consider potential 

solutions, recognize special needs populations, and 

propose recommendations. 

(D) QUALITY ASSURANCE.—Before approving an application submitted under this section, the President, or the designee of the President, shall institute adequate policies, procedures, and internal controls to prevent waste, fraud, 

abuse, and program mismanagement for this program and 

for programs under subsections (c)(1)(B), (c)(4), and (e). The 

President shall monitor and conduct quality assurance activities on a State or Tribal government’s implementation of 

programs under subsections (c)(1)(B), (c)(4), and (e). If, 

after approving an application of a State or Tribal government submitted under this paragraph, the President determines that the State or Tribal government is not administering the program established by this section in a manner satisfactory to the President, the President shall withdraw the approval. 

(E) AUDITS.—The Inspector General of the Department of 

Homeland Security shall provide for periodic audits of the 

programs administered by States and Tribal governments 

under this subsection. 

(F) APPLICABLE LAWS.—All Federal laws applicable to the 

management, administration, or contracting of the programs by the Federal Emergency Management Agency 

under this section shall be applicable to the management, 

administration, or contracting by a non-Federal entity 

under this section. 

(G) REPORT ON EFFECTIVENESS.—Not later than 18 

months after the date of enactment of this paragraph, the 

Inspector General of the Department of Homeland Security 

shall submit a report to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of 

Representatives on the State or Tribal government’s role to 

provide assistance under this section. The report shall contain an assessment of the effectiveness of the State or Tribal 

government’s role in providing assistance under this section, including— 

(i) whether the State or Tribal government’s role 

helped to improve the general speed of disaster recovery; 

(ii) whether the State or Tribal government providing 

assistance under this section had the capacity to administer this section; and 

38 

(iii) recommendations for changes to improve the 

program if the State or Tribal government’s role to administer the programs should be continued. 

(H) REPORT ON INCENTIVES.—Not later than 12 months 

after the date of enactment of this paragraph, the Administrator of the Federal Emergency Management Agency shall 

submit a report to the Committee on Homeland Security 

and Governmental Affairs of the Senate and the Committee 

on Transportation and Infrastructure of the House of Representatives on a proposed incentive structure for awards 

made under this section to encourage participation by eligible States and Tribal governments and to potentially add 

cost-share requirements that are reasonable to support increased management by State and Tribal governments according to this section. 

(I) PROHIBITION.—The President may not condition the 

provision of Federal assistance under this Act on a State or 

Tribal government requesting a grant under this section. 

(J) MISCELLANEOUS.— (i) NOTICE AND COMMENT.—The Administrator of the 

Federal Emergency Management Agency may waive 

notice and comment rulemaking with respect to rules to 

carry out this section, if the Administrator determines 

doing so is necessary to expeditiously implement this 

section, and may carry out this section as a pilot program until such regulations are promulgated. 

(ii) FINAL RULE.—Not later than 2 years after the 

date of enactment of this paragraph, the Administrator 

of the Federal Emergency Management Agency shall 

issue final regulations to implement this subsection as 

amended by the Disaster Recovery Reform Act of 2018. 

(iii) WAIVER AND EXPIRATION.—The authority under 

clause (i) and any pilot program implemented pursuant to such clause shall expire 2 years after the date 

of enactment of this paragraph or upon issuance of 

final regulations pursuant to clause (ii), whichever occurs sooner. 

* * * * * * * 

(h) MAXIMUM AMOUNT OF ASSISTANCE.— (1) IN GENERAL.—No individual or household shall receive financial assistance greater than $ 25,000 under this section 

with respect to a single major disaster, excluding financial assistance to rent alternate housing accommodations under subsection (c)(1)(A)(i) and financial assistance to address other 

needs under subsection (e). 

(2) OTHER NEEDS ASSISTANCE.—The maximum financial assistance any individual or household may receive under subsection (e) shall be equivalent to the amount set forth in paragraph (1) with respect to a single major disaster. 

ø(2)¿ (3) ADJUSTMENT OF LIMIT.—The limit established under 

øparagraph (1)¿ paragraphs (1) and (2) shall be adjusted annually to reflect changes in the Consumer Price Index for All 

Urban Consumers published by the Department of Labor. 

(4) EXCLUSION OF NECESSARY EXPENSES FOR INDIVIDUALS

WITH DISABILITIES.— 

39 

(A) IN GENERAL.—The maximum amount of assistance 

established under paragraph (1) shall exclude expenses to 

repair or replace damaged accessibility-related improvements under paragraphs (2), (3), and (4) of subsection (c) 

for individuals with disabilities. 

(B) OTHER NEEDS ASSISTANCE.—The maximum amount 

of assistance established under paragraph (2) shall exclude 

expenses to repair or replace accessibility-related personal 

property under subsection (e)(2) for individuals with disabilities. 

* * * * * * * 

SEC. 420. FIRE MANAGEMENT ASSISTANCE. 

(a) * * * 

(b) * * * 

(c) * * * 

(d) HAZARD MITIGATION ASSISTANCE.—Whether or not a major 

disaster is declared, the President may provide hazard mitigation 

assistance in accordance with section 404 in any area affected by a 

fire for which assistance was provided under this section. 

ød¿ (e) RULES AND REGULATIONS.—The President shall prescribe 

such rules and regulations as are necessary to carry out this section. 

* * * * * * * 

SEC. 423. APPEALS OF ASSISTANCE DECISIONS. 

(a) * * * 

(b) * * * 

(c) * * * 

(d) RIGHT OF ARBITRATION.— (1) IN GENERAL.—Notwithstanding subsections (a), (b), and 

(c), an applicant for assistance under this title may request arbitration to dispute the eligibility for assistance or repayment of 

assistance provided for a dispute of more than $500,000. Such 

arbitration shall be conducted by the Civilian Board of Contract Appeals and the decision of such Board shall be binding. 

(2) ELIGIBILITY.—To participate in arbitration under this subsection, an applicant may submit a request for arbitration after 

the completion of the first appeal under subsection (a) at any 

time before the Administrator of the Federal Emergency Management Agency has issued a final agency determination. 

(3) LIMITATION OF APPEAL.—Upon the submission of a request 

for arbitration, an applicant shall forfeit all rights to further 

appeal. 

* * * * * * * 

SEC. 428. PUBLIC ASSISTANCE PROGRAM ALTERNATIVE PROCEDURES. 

* * * * * * * 

(d) PARTICIPATION.—øParticipation in¿ 

(1) IN GENERAL.—Participation in the alternative procedures 

adopted under this section shall be at the election of a State, 

tribal or local government, or owner or operator of a private 

nonprofit facility consistent with procedures determined by the 

Administrator. 

40 

(2) NO CONDITIONS.—The President may not condition the 

provision of Federal assistance under this Act on the election by 

a State, Tribal, or local government, or owner or operator of a 

private nonprofit facility to participate in the alternative procedures adopted under this section. 

(e) MINIMUM PROCEDURES.— (1) For repair, restoration, and replacement of damaged facilities under section 406— 

* * * * * * * 

(E) in determining eligible costs under section 406, the 

Administrator shall make available, at an applicant’s request and where the Administrator or the certified cost estimate prepared by the applicant’s professionally licensed 

engineers has estimated an eligible Federal share for a 

project of at least $ 5,000,000, an independent expert 

panel to validate the estimated eligible cost consistent 

with applicable regulations and policies implementing this 

section; øand¿ 

(F) in determining eligible costs under section 406, the 

Administrator shall, at the applicant’s request, consider 

properly conducted and certified cost estimates prepared 

by professionally licensed engineers (mutually agreed upon 

by the Administrator and the applicant), to the extent that 

such estimates comply with applicable regulations, policy, 

and guidanceø.¿; and 

(G) once certified by a professionally licensed engineer 

and accepted by the Administrator, the estimates on which 

grants made pursuant to this section are based shall be 

presumed to be reasonable and eligible costs, as long as 

there is no evidence of fraud. 

* * * * * * * 

SEC. 430. AGENCY ACCOUNTABILITY. 

(a) PUBLIC ASSISTANCE.—Not later than 5 days after an award 

of a public assistance grant is made under section 406 that is in excess of $1,000,000, the Administrator of the Federal Emergency 

Management Agency shall publish on the website of the Federal 

Emergency Management Agency the specifics of each such grant 

award, including— 

(1) identifying the Federal Emergency Management Agency 

Region; 

(2) the disaster or emergency declaration number; 

(3) the State, county, and applicant name; 

(4) if the applicant is a private nonprofit organization; 

(5) the damage category code; 

(6) the amount of the Federal share obligated; and 

(7) the date of the award. 

(b) MISSION ASSIGNMENTS.— 

(1) IN GENERAL.—Not later than 5 days after the issuance of 

a mission assignment or mission assignment task order, the Administrator of the Federal Emergency Management Agency 

shall publish on the website of the Federal Emergency Management Agency any mission assignment or mission assignment 

task order to another Federal department or agency regarding 

a major disaster in excess of $1,000,000, including— 

41 

(A) the name of the impacted State or Indian Tribe; 

(B) the disaster declaration for such State or Indian 

Tribe; 

(C) the assigned agency; 

(D) the assistance requested; 

(E) a description of the disaster; 

(F) the total cost estimate; 

(G) the amount obligated; 

(H) the State or Tribal cost share, if applicable; 

(I) the authority under which the mission assignment or 

mission assignment task order was directed; and 

(J) if applicable, the date a State or Indian Tribe requested the mission assignment. 

(2) RECORDING CHANGES.—Not later than 10 days after the 

last day of each month until a mission assignment or mission 

assignment task order described in paragraph (1) is completed 

and closed out, the Administrator of the Federal Emergency 

Management Agency shall update any changes to the total cost 

estimate and the amount obligated. 

(c) DISASTER RELIEF MONTHLY REPORT.—Not later than 10 days 

after the first day of each month, the Administrator of the Federal 

Emergency Management Agency shall publish on the website of the 

Federal Emergency Management Agency reports, including a specific description of the methodology and the source data used in developing such reports, including— 

(1) an estimate of the amounts for the fiscal year covered by 

the President’s most recent budget pursuant to section 1105(a) 

of title 31, United States Code, including— 

(A) the unobligated balance of funds to be carried over 

from the prior fiscal year to the budget year; 

(B) the unobligated balance of funds to be carried over 

from the budget year to the budget year plus 1; 

(C) the amount of obligations for noncatastrophic events 

for the budget year; 

(D) the amount of obligations for the budget year for catastrophic events delineated by event and by State; 

(E) the total amount that has been previously obligated 

or will be required for catastrophic events delineated by 

event and by State for all prior years, the current fiscal 

year, the budget year, and each fiscal year thereafter; 

(F) the amount of previously obligated funds that will be 

recovered for the budget year; 

(G) the amount that will be required for obligations for 

emergencies, as described in section 102(1), major disasters, 

as described in section 102(2), fire management assistance 

grants, as described in section 420, surge activities, and 

disaster readiness and support activities; and 

(H) the amount required for activities not covered under 

section 251(b)(2)(D)(iii) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 

901(b)(2)(D)(iii)); and 

(2) an estimate or actual amounts, if available, of the following for the current fiscal year, which shall be submitted not 

later than the fifth day of each month, published by the Administrator of the Federal Emergency Management Agency on the 

42 

website of the Federal Emergency Management Agency not later 

than the fifth day of each month: 

(A) A summary of the amount of appropriations made 

available by source, the transfers executed, the previously 

allocated funds recovered, and the commitments, allocations, and obligations made. 

(B) A table of disaster relief activity delineated by month, 

including— 

(i) the beginning and ending balances; 

(ii) the total obligations to include amounts obligated 

for fire assistance, emergencies, surge, and disaster 

support activities; 

(iii) the obligations for catastrophic events delineated 

by event and by State; and 

(iv) the amount of previously obligated funds that 

are recovered. 

(C) A summary of allocations, obligations, and expenditures for catastrophic events delineated by event. 

(D) The cost of the following categories of spending: 

(i) Public assistance. 

(ii) Individual assistance. 

(iii) Mitigation. 

(iv) Administrative. 

(v) Operations. 

(vi) Any other relevant category (including emergency 

measures and disaster resources) delineated by disaster. 

(E) The date on which funds appropriated will be exhausted. 

(d) CONTRACTS.— 

(1) INFORMATION.—Not later than 10 days after the first day 

of each month, the Administrator of the Federal Emergency 

Management Agency shall publish on the website of the Federal 

Emergency Management Agency the specifics of each contract in 

excess of $1,000,000 that the Federal Emergency Management 

Agency enters into, including— 

(A) the name of the party; 

(B) the date the contract was awarded; 

(C) the amount and scope of the contract; 

(D) if the contract was awarded through a competitive 

bidding process; 

(E) if no competitive bidding process was used, the reason why competitive bidding was not used; and 

(F) the authority used to bypass the competitive bidding 

process. 

The information shall be delineated by disaster, if applicable, and 

specify the damage category code, if applicable. 

(2) REPORT.—Not later than 10 days after the last day of the 

fiscal year, the Administrator of the Federal Emergency Management Agency shall provide a report to the appropriate committees of Congress summarizing the following information for 

the preceding fiscal year: 

(A) The number of contracts awarded without competitive 

bidding. 

43 

(B) The reasons why a competitive bidding process was 

not used. 

(C) The total amount of contracts awarded with no competitive bidding. 

(D) The damage category codes, if applicable, for contracts awarded without competitive bidding. 

(e) COLLECTION OF PUBLIC ASSISTANCE RECIPIENT AND SUB- RECIPIENT CONTRACTS.— (1) IN GENERAL.—Not later than 180 days after the date of 

enactment of this subsection, the Administrator of the Federal 

Emergency Management Agency shall initiate efforts to begin 

collecting information prior to the project closeout phase on any 

contract for more than $500,000 that a public assistance recipient or subrecipient enters into using grant monies under section 

324, 403, 406, 407, 428, or 502, to improve oversight efforts by 

the Inspector General of the Department and others, including— 

(A) the name of each party; 

(B) the date the contract was awarded; 

(C) the amount of the contract; 

(D) the scope of the contract; 

(E) the period of performance for the contract; and 

(F) whether the contract was awarded through a competitive bidding process. 

(2) REPORT.—Not later than 365 days after the date of enactment of this subsection, the Administrator of the Federal Emergency Management Agency shall submit a report to the Committee on Homeland Security and Governmental Affairs of the 

Senate and the Committee on Transportation and Infrastructure of the House of Representatives on the efforts of the Federal 

Emergency Management Agency to collect the information described in paragraph (1). 

* * * * * * * 

TITLE VII—MISCELLANEOUS 

* * * * * * * 

SEC. 705. DISASTER GRANT CLOSEOUT PROCEDURES. 

(a) STATUTE OF LIMITATIONS.— 

(1) IN GENERAL.—øExcept¿ Notwithstanding section 3716(e) 

of title 31, United States Code, and except as provided in paragraph (2), no administrative action to recover any payment 

made to a State or local government for disaster or emergency 

assistance under this Act shall be initiated in any forum after 

the date that is 3 years after the date of transmission of the 

final expenditure øreport for the disaster or emergency¿ report 

for project completion as certified by the grantee. 

(2) * * * 

(b) REBUTTAL OF PRESUMPTION OF RECORD MAINTENANCE.— 

(1) IN GENERAL.—In any dispute arising under this section 

after the date that is 3 years after the date of transmission of 

the final expenditure øreport for the disaster or emergency¿ report for project completion as certified by the grantee, there 

shall be a presumption that accounting records were mainVerDate Sep 11 2014 01:12 Jan 03, 2019 Jkt 089010 PO 00000 Frm 00045 Fmt 6659 Sfmt 6602 E:\HR\OC\SR446.XXX SR446
44 

tained that adequately identify the source and application of 

funds provided for financially assisted activities. 

(2) * * * 

(3) INABILITY TO PRODUCE DOCUMENTATION.—The inability of 

the Federal, State, or local government to produce source documentation supporting expenditure reports later than 3 years 

after the date of transmission of the final expenditure report 

for project completion as certified by the grantee shall not constitute evidence to rebut the presumption described in paragraph (1). 

(4) * * * 

* * * * * * * 

(d) FACILITATING CLOSEOUT.— 

(1) INCENTIVES.—The Administrator of the Federal Emergency Management Agency may develop incentives and penalties that encourage State, Tribal, or local governments to close 

out expenditures and activities on a timely basis related to disaster or emergency assistance. 

(2) AGENCY REQUIREMENTS.—The Federal Emergency Management Agency shall, consistent with applicable regulations 

and required procedures, meet its responsibilities to improve 

closeout practices and reduce the time to close disaster program 

awards. 

* * * * * * * 

PUBLIC WORKS AND ECONOMIC 

DEVELOPMENT ACT OF 1965 

* * * * * * * 

TITLE II—GRANTS FOR PUBLIC WORKS AND 

ECONOMIC DEVELOPMENT 

* * * * * * * 

SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT 

(a) * * * 

* * * * * * * 

(e) DISASTER MITIGATION.—In providing assistance pursuant to 

subsection (c)(2), if appropriate and as applicable, the Secretary 

may encourage hazard mitigation in assistance provided pursuant 

to such subsection. 

* * * * * * * 

POST-KATRINA EMERGENCY 

MANAGEMENT REFORM ACT OF 2006 

* * * * * * * 

45 

TITLE VI—NATIONAL EMERGENCY 

MANAGEMENT 

* * * * * * * 

Subtitle C—Comprehensive Preparedness System 

* * * * * * * 

CHAPTER 2—ADDITIONAL PREPAREDNESS 

* * * * * * * 

SEC. 661. EMERGENCY MANAGEMENT ASSISTANCE COMPACT GRANTS 

(a) * * * 

* * * * * * * 

(d) AUTHORIZATION.—There is authorized to be appropriated to 

carry out this section $4,000,000 øfor fiscal year 2008¿ for each of 

fiscal years 2018 through 2022. Such sums shall remain available 

until expended. 

SEC. 662. EMERGENCY MANAGEMENT PERFORMANCE GRANTS PROGRAM 

(a) * * * 

* * * * * * * 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out the program, for each of fiscal years 

2018 through 2022 øthe program— 

ø(1) for fiscal year 2008, $ 400,000,000; 

ø(2) for fiscal year 2009, $ 535,000,000; 

ø(3) for fiscal year 2010, $ 680,000,000; 

ø(4) for fiscal year 2011, $ 815,000,000; and 

ø(5) for fiscal year 2012¿, $ 950,000,000. 

* * * * * * * 

DISASTER MITIGATION ACT OF 2000 

* * * * * * * 

TITLE II—STREAMLINING AND COST 

REDUCTION 

* * * * * * * 

SEC. 205. ASSISTANCE TO REPAIR, RESTORE, RECONSTRUCT, OR REPLACE DAMAGED FACILITIES. 

* * * * * * * 

(d) * * * 

(1) * * * 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) takes effect on the date of the enactment of this Act and 

applies to funds appropriated after the date of the enactment 

of this Act, except that paragraph (1)(B) of section 406(e) of the 

Robert T. Stafford Disaster Relief and Emergency Assistance 

46 

Act (as amended by paragraph (1)) takes effect on the date on 

which the cost estimation procedures established under paragraph (3) of that section take effect. 

* * * * * * * 

Æ