SEC. 2. FLEXIBILITY. 
Section 1216(a) of the Disaster Recovery Reform Act 
of 2018 (42 U.S.C. 5174a(a)) is amended— 
(1) by amending paragraph (2)(A) to read as 
follows: 
‘‘(A) except as provided in subparagraph 
(B), shall— 
‘‘(i) waive a debt owed to the United 
States related to covered assistance pro-
vided to an individual or household if the 
covered assistance was distributed based 
on an error by the Agency and such debt 
shall be construed as a hardship; and 
‘‘(ii) waive a debt owed to the United 
States related to covered assistance pro-
vided to an individual or household if such 
assistance is subject to a claim or legal ac-
tion, including in accordance with section 
317 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 
U.S.C. 5160); and’’; and 
(2) in paragraph (3)(B)— 
(A) by striking ‘‘REMOVAL OF’’ and insert-
ing ‘‘REPORT ON’’; and 
(B) in clause (ii) by striking ‘‘the authority 
of the Administrator to waive debt under para-
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graph (2) shall no longer be effective’’ and in-
serting ‘‘the Administrator shall report to the 
Committee on Transportation and Infrastruc-
ture of the House of Representatives and the 
Committee on Homeland Security and Govern-
mental Affairs of the Senate actions that the 
Administrator will take to reduce the error 
rate’’. 
SEC. 3. REPORT TO CONGRESS. 
The Administrator of the Federal Emergency Man-
agement Agency shall submit to the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives and the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate a report containing a de-
scription of the internal processes used to make decisions 
regarding the distribution of covered assistance under sec-
tion 1216 of the Disaster Recovery and Reform Act of 
2018 (42 U.S.C. 5174a) and any changes made to such 
processes. 
SEC. 4. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
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by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
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Calendar No. 359 
117TH CONGRESS 
2D SESSION 
H. R. 539 
[Report No. 117–101] 
AN ACT 
To amend the Disaster Recovery Reform Act of 
2018 to require the Administrator of the Federal 
Emergency Management Agency to waive certain 
debts owed to the United States related to cov-
ered assistance provided to an individual or 
household, and for other purposes. 
MAY 3, 2022 
Reported without amendment 
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