II 

118TH CONGRESS 

1ST SESSION S. 3071 

To amend section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act to incentivize States, Indian Tribes, and Territories 

to close disaster recovery projects by authorizing the use of excess funds 

for management costs for other disaster recovery projects. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 18, 2023 

Ms. HASSAN (for herself and Mr. LANKFORD) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To amend section 324 of the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act to incentivize 

States, Indian Tribes, and Territories to close disaster 

recovery projects by authorizing the use of excess funds 

for management costs for other disaster recovery 

projects. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Costs Modernization Act’’. 

2 

•S 3071 IS

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

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

3 Stafford Disaster Relief and Emergency Assistance Act 

4 (42 U.S.C. 5165b) is amended— 

5 (1) in subsection (b)(2)— 

6 (A) by redesignating subparagraphs (A) 

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

8 adjusting the margins accordingly; and 

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

10 so redesignated, by striking ‘‘provide the fol11 lowing percentage rates’’ and inserting ‘‘pro12 vide— 

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

14 described in subsection (c); and 

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

16 (2) by redesignating subsection (c) as sub17 section (d); and 

18 (3) by inserting after subsection (b) the fol19 lowing: 

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

21 COSTS.— 

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

23 ‘excess funds for management costs’ means the dif24 ference between— 

3 

•S 3071 IS

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

2 management costs authorized under subsection 

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

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

5 award is closed, the amount of funding for 

6 management costs activities expended by the 

7 grantee or subgrantee receiving the financial as8 sistance for costs described in subparagraph 

9 (A). 

10 ‘‘(2) AVAILABILITY OF EXCESS FUNDS FOR

11 MANAGEMENT COSTS.—The President may make 

12 available to a grantee or subgrantee receiving finan13 cial assistance under section 403, 404, 406, 407, or 

14 502 any excess funds for management costs. 

15 ‘‘(3) USE OF FUNDS.—Excess funds for man16 agement costs made available to a grantee or sub17 grantee under paragraph (2) may be used for— 

18 ‘‘(A) activities associated with building ca19 pacity to prepare for, recover from, or mitigate 

20 the impacts of a major disaster or emergency 

21 declared under section 401 or 501, respectively; 

22 and 

23 ‘‘(B) management costs associated with 

24 any— 

25 ‘‘(i) major disaster; 

4 

•S 3071 IS

1 ‘‘(ii) emergency; 

2 ‘‘(iii) disaster preparedness measure; 

3 or 

4 ‘‘(iv) mitigation activity or measure 

5 authorized under section 203, 204, 205, or 

6 404. 

7 ‘‘(4) AVAILABILITY.—Excess funds for manage8 ment costs made available to a grantee or sub9 grantee under paragraph (2) shall remain available 

10 to the grantee or subgrantee until the date that is 

11 5 years after the date on which the excess funds for 

12 management costs are made available under para13 graph (2).’’. 

14 (b) APPLICABILITY.—The amendments made by sub15 section (a) shall apply with respect to any grant award 

16 in relation to a major disaster or emergency declared 

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

18 Stafford Disaster Relief and Emergency Assistance Act 

19 (42 U.S.C. 5170, 5191)— 

20 (1) the declaration of which is open on, or made 

21 on or after, the date of enactment of this Act; and 

22 (2) that is funded with amounts appropriated 

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

Æ