the United States with respect to such compensation, em-
ployment, and obligations. Such obligations’’.
SEC. 307. REIMBURSEMENT AGREEMENTS AND CONDI-
TIONS.
Section 311 (42 U.S.C. 5154) is amended to read as
follows:
‘‘SEC. 311. REIMBURSEMENT AGREEMENTS AND CONDI-
TIONS.
‘‘(a) REPAYMENT.—Assistance may only be provided
under this Act with respect to damage caused by a major
disaster or emergency within the borders of a State if a
State has agreed to reimburse the United States for all
expenses incurred by the United States in providing such
assistance. Such assistance, including a loan or advance
made under section 319, shall be repaid to the United
States.
‘‘(b) INTEREST.—Assistance provided under this Act
with respect to which a State agrees to reimburse the
United States for all expenses incurred in providing such
assistance, including loans and advances made under this
Act, shall bear interest at a rate determined by the Sec-
retary of the Treasury, taking into consideration the cur-
rent market yields on outstanding marketable obligations
of the United States with remaining periods of maturity
comparable to the reimbursement period of the reimburs-
able assistance provided.
‘‘(c) REGULATIONS.—The President shall issue regu-
lations describing the terms and conditions under which
any reimbursable assistance, loan, or advance authorized
by this Act may be provided.’’.
SEC. 308. TREATMENT OF ASSISTANCE.
Section 312 (42 U.S.C. 5155) is amended to read as
follows:
‘‘SEC. 312. TREATMENT OF ASSISTANCE.
‘‘Federal major disaster and emergency assistance
provided to individuals and families under this Act, and
comparable disaster assistance provided by States, local
governments, and disaster assistance organizations, shall
not be considered as income or a resource when determin-
ing eligibility for or benefit levels under federally funded
income assistance or resource-tested benefit programs.’’.
SEC. 309. LIABILITY.
Section 317 (42 U.S.C. 5160) is repealed.
SEC. 310. ADVANCE OF STATE EXPENDITURES.
Section 319 (42 U.S.C. 5162) is amended to read as
follows:
‘‘SEC. 319. ADVANCE OF STATE EXPENDITURES.
‘‘The President may lend or advance to a State as-
sistance for which the State is responsible under section
403 of this Act in any case in which the President deter-
mines that—
‘‘(1) the damages caused by a major disaster
are so overwhelming and severe that it is not pos-
sible for the State to assume immediately its finan-
cial responsibility under this Act; and
‘‘(2) the State has the ability to repay any such
loans or advances.’’.
SEC. 311. PROCEDURE FOR DECLARATION OF MAJOR DIS-
ASTER.
Section 401 (42 U.S.C. 5170) is amended—
(1) by inserting ‘‘reimbursable’’ after ‘‘Fed-
eral’’;
(2) by inserting before the period at the end of
the second sentence ‘‘and shall enter into an agree-
ment to reimburse the United States for all expenses
incurred in providing assistance under this Act with
respect to the disaster’’; and
(3) by striking ‘‘cost-sharing’’.
SEC. 312. GENERAL FEDERAL DISASTER ASSISTANCE.
Section 402 (42 U.S.C. 5170a) is amended—
(1) by striking ‘‘In’’ and inserting ‘‘(a) GEN-
ERAL AUTHORITY.—Subject to subsection (b), in’’;
(2) by striking ‘‘, with or without reimburse-
ment,’’; and
(3) by adding at the end the following:
‘‘(b) 
REIMBURSEMENT
AGREEMENT.—Assistance
may only be provided under this section if the affected
State agrees to reimburse the United States for all ex-
penses incurred in providing such assistance.’’.
SEC. 313. ESSENTIAL DISASTER ASSISTANCE.
Section 403 (42 U.S.C. 5170b) is amended—
(1) in subsection (a) by striking ‘‘Federal agen-
cies’’ and inserting ‘‘Subject to subsection (b), Fed-
eral agencies’’;
(2) by striking subsection (b) and inserting the
following:
‘‘(b) 
REIMBURSEMENT
AGREEMENT.—Assistance
may only be provided under this section if the affected
State agrees to reimburse the United States for all ex-
penses incurred in providing such assistance.’’;
(3) in subsection (c)(3) by striking ‘‘out of
funds made available to carry out this Act’’ and in-
serting ‘‘by the State’’;
(4) by striking paragraph (4);
(5) by redesignating paragraphs (5) and (6) of
subsection (c) as paragraphs (4) and (5), respec-
tively; and