‘‘(C) information regarding the effect of 
the disaster on education, transportation capa-
bilities and dependence, housing needs, health 
care capacity, and displacement of persons; and 
‘‘(D) the extent of the unmet need. 
‘‘(2) PROTECTION OF PERSONALLY IDENTIFI-
ABLE
INFORMATION.—In carrying out this sub-
section, the President and the grantee shall take 
such actions as may be necessary to ensure that per-
sonally identifiable information regarding recipients 
of assistance provided under this section is not made 
publicly available by any agency with which informa-
tion is shared pursuant to this subsection. 
‘‘(c) USE OF FUNDS.— 
‘‘(1) ADMINISTRATIVE COSTS.— 
‘‘(A) IN
GENERAL.—A State or Indian 
Tribe receiving a grant under this section may 
use not more than 13 percent of the amount of 
grant funds received, or within such other per-
centage as may be established pursuant to sub-
paragraph (B), for administrative costs, includ-
ing costs related to audits, reviews, oversight, 
evaluation, and investigations. 
‘‘(B) DISCRETION TO ESTABLISH SLIDING 
SCALE.—The President may establish a series 
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of percentage limitations on the amount of 
grant funds received that may be used by a 
grantee for administrative costs, but only if— 
‘‘(i) such percentage limitations are 
based on the amount of grant funds re-
ceived by a grantee; and 
‘‘(ii) such series provides that the per-
centage that may be used is lower for 
grantees receiving a greater amount of 
grant funds and such percentage that may 
be used is higher for grantees receiving a 
lesser amount of grant funds. 
‘‘(2) CAPACITY BUILDING.—From funds made 
available for use under this section, the President 
shall provide necessary technical assistance to grant-
ees to ensure grantees are compliant with Federal 
law, and capacity building and technical assistance, 
including assistance regarding contracting and pro-
curement processes, including providing solicitation 
and contractual templates that conform to Federal 
requirements for use by grantees. 
‘‘(d) ALLOCATION, PROCESS, AND PROCEDURES; CO-
ORDINATION.— 
‘‘(1) ALLOCATION.— 
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‘‘(A) IN
GENERAL.—The President shall 
allocate funds under this section proportionally 
to grantees based on their level of unmet need 
as determined pursuant to subsection (b). 
‘‘(B) GRANTEE
USE
OF
FUNDS.—Each 
grantee, not the President, shall be responsible 
for determining how funds provided under this 
section are prioritized and spent and a grantee 
shall not be required to provide an action or 
spending plan before or after funds are allo-
cated, except that the grantee shall use a por-
tion of these funds for cleaning and removing 
debris from rivers, creeks, streams, and ditches. 
‘‘(C) LIMITATION.—Notwithstanding sec-
tion 312, a loan shall not be considered a dupli-
cation of benefits or otherwise impact the level 
of unmet need under this section. 
‘‘(2) 
GRANTEE
PROCESSES
AND
PROCE-
DURES.— 
‘‘(A) INITIAL
GRANT
FUNDS.—Initially, 
grantees shall be awarded 50 percent of their 
total allocation under paragraph (1). After ex-
penditure of such amount, a grantee shall sub-
mit a report, detailing how such grant funds 
were spent, to the Committees on Appropria-
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tions of the House of Representatives and the 
Senate, the Committee on Transportation and 
Infrastructure of the House of Representatives, 
and the Committee on Homeland Security and 
Governmental Affairs of the Senate. Such re-
port shall include a certification from the State 
Auditor that none of the funds were wasted or 
used inappropriately. 
‘‘(B) CONGRESSIONAL APPROVAL.— 
‘‘(i) APPROVAL.—Not later than 60 
days after receipt of the report under sub-
paragraph (A), Congress shall approve or 
disapprove the report. If the report is ap-
proved, or if 60 days has lapsed and Con-
gress has not commented on the report, 
the remaining 50 percent of the allocation 
under paragraph (1) shall be released to 
the grantee. 
‘‘(ii) DISAPPROVAL.—If Congress dis-
approves the report, the grantee shall work 
with Congress to address any and all con-
cerns regarding how the initial 50 percent 
of the grant money was expended. Once 
these concerns are resolved, the remaining 
funds shall be released to the grantee. 
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‘‘(iii) FRAUD OR ABUSE.—If Congress 
determines that a grantee committed fraud 
or abuse, Congress shall require the Presi-
dent to recover all funds provided to the 
grantee under this section. Any amount re-
covered under this clause shall be redistrib-
uted to other grantees with approved re-
ports pursuant to clause (i). 
‘‘(3) REQUIREMENTS.—Each State and Indian 
Tribe that receives funds under this section shall es-
tablish or adhere to existing guidelines for procure-
ment processes and procedures and require that sub-
grantees— 
‘‘(A) provide for full and open competition 
and require cost or price analysis; 
‘‘(B) specify methods of procurement and 
their applicability, but not allow cost-plus-a-per-
centage-of cost or percentage-of-construction- 
cost methods of procurement; 
‘‘(C) include standards of conduct gov-
erning employees engaged in the award or ad-
ministration of contracts; and 
‘‘(D) ensure that all purchase orders and 
contracts include any clauses required by Fed-
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eral statute, Executive order, or implementing 
regulation. 
‘‘(e) ENVIRONMENTAL REVIEW.—Recipients of funds 
received under this section that use funds to supplement 
funds provided under section 402, 403, 404, 406, 407, 
408(c)(4), 428, or 502 may adopt, without review or pub-
lic comment, any environmental review, approval, or per-
mit performed by a Federal agency. 
‘‘(f) BEST PRACTICES.—The President shall identify 
best practices for grantees on issues including developing 
action plans, establishing financial controls, building 
grantee technical and administrative capacity, procure-
ment, and use of grant funds as local match for other 
sources of Federal funding. Not later than 1 year after 
the date of enactment of this section, the President shall 
publish a compilation of such identified best practices and 
share with all relevant grantees to facilitate a more effi-
cient and effective disaster recovery process. 
‘‘(g) NATURAL
DISASTER
RECOVERY
RESERVE 
FUND.— 
‘‘(1) IN GENERAL.—There is established in the 
Treasury of the United States an account to be 
known as the Natural Disaster Recovery Reserve 
Fund (in this section referred to as the ‘Fund’). 
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‘‘(2) AMOUNTS.—The Fund shall consist of any 
amounts appropriated to or deposited into the Fund, 
including amounts deposited into the Fund pursuant 
to paragraph (4). 
‘‘(3) USE OF FUNDS.—Amounts in the Fund 
shall be available, pursuant to a declaration of a 
major disaster, only for providing technical assist-
ance and capacity building in connection with sub-
section (c)(4) for grantees that have been allocated 
assistance under this section in connection with such 
disaster to facilitate planning and increase capacity 
to administer assistance under this section. 
‘‘(4) UNUSED AMOUNTS.—If any amounts made 
available for assistance under this section to grant-
ees remain unexpended on the earlier of— 
‘‘(A) the date that the grantee of such 
amounts notifies the President that the grantee 
has completed all activities; or 
‘‘(B) except as provided in paragraph (5), 
the expiration of the 6-year period beginning 
when the President obligates such amounts to 
the grantee, the President shall transfer such 
unexpended amounts to the Secretary of the 
Treasury for deposit into the Fund, except that 
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the President may permit the grantee to retain 
amounts needed to close out the grant. 
‘‘(5) EXTENSION
OF
PERIOD
FOR
USE
OF 
FUNDS.—The period under paragraph (4)(B) may 
be extended by not more than 4 years if, before the 
expiration of such 6-year period, the President 
waives this requirement and submits a written jus-
tification for such waiver to the Committees on Ap-
propriations of the House of Representatives and the 
Senate that specifies the period of such extension. 
‘‘(h) WAIVER AUTHORITY.—Until such time as the 
President issues regulations to implement this section, the 
President may— 
‘‘(1) waive notice and comment rulemaking, if 
the President determines the waiver is necessary to 
expeditiously implement the provisions of this sec-
tion; and 
‘‘(2) carry out the grant program under this 
section as a pilot program. 
‘‘(i) DEFINITIONS.—For purposes of this section, the 
following terms shall apply: 
‘‘(1) STATE AUDITOR.—The term ‘State audi-
tor’ means the individual selected by each State or 
the Chief Executive to submit information pursuant 
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to subsection (c)(3) and a certification in accordance 
with subsection (d)(2)(A). 
‘‘(2) UNMET NEED.—The term ‘unmet need’ 
means any unresourced item, support, or assistance 
that has been assessed and verified as necessary for 
a survivor to recover from a major disaster, includ-
ing food, clothing, shelter, first aid, emotional and 
spiritual care, household items, home repair, or re-
building.’’. 
Æ 
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