Disaster Resiliency and Coverage Act of 2025
Summary
What This Bill Does
The Disaster Resiliency and Coverage Act combines Stafford Act grants and tax changes. It requires the President to establish a program providing grants to states and Indian tribal governments for qualifying pre-disaster mitigation activities on individual residential households at risk of major-disaster damage. It excludes from gross income state-based catastrophe loss mitigation payments and several emergency agricultural assistance programs. It also creates a 30 percent tax credit for qualifying mitigation expenditures on owned or leased real property, with coordination rules for state reimbursements and business-credit treatment.
Who Benefits and How
Homeowners in hazard-prone areas benefit from grants and tax credits that reduce the cost of pre-disaster mitigation work. States and Indian tribal governments benefit from a federal grant program for household-level mitigation activities. Farmers receiving disaster assistance benefit from income exclusions for specified wildfire, hurricane, crop, food, and conservation assistance. Insurers and disaster-resilience advocates benefit if more homes are hardened before disasters occur.
Who Bears the Burden and How
FEMA and presidential disaster staff must establish eligible disaster areas, provide technical assistance, and update risk areas at least every five years. IRS examiners must administer new income exclusions and a 30 percent mitigation tax credit. State mitigation program administrators must coordinate reimbursements so credits are not duplicated. Federal taxpayers bear grant costs, tax-expenditure costs, and revenue losses from exclusions and credits.
Key Provisions
- Establishes state and tribal grants for individual household pre-disaster mitigation.
- Provides a gross-income exclusion for state catastrophe loss mitigation payments.
- Expands disaster relief income treatment to specified emergency agricultural assistance.
- Creates a 30 percent tax credit for qualifying disaster mitigation expenditures.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates household pre-disaster mitigation grants for states and tribes, excludes state catastrophe mitigation payments and specified agricultural disaster assistance from income, and creates a 30 percent disaster mitigation tax credit.
Key Policy Areas
Disaster Recovery, Tax, Housing
Primary Purpose
Creates household pre-disaster mitigation grants for states and tribes, excludes state catastrophe mitigation payments and specified agricultural disaster assistance from income, and creates a 30 percent disaster mitigation tax credit.
Policy Domains
Resolution provisions
Identified Gains
- Homeowners in hazard-prone areas
- States
- Indian tribal governments
- Farmers receiving disaster assistance
Identified Costs
- FEMA staff
- IRS examiners
- State mitigation administrators
- Federal taxpayers
Sponsors
Legislative Progress
In CommitteeMr. Thompson of California (for himself, Mr. LaMalfa, Mrs. Kim, …
Referred to the Subcommittee on Economic Development, Public Buildings, and …
Referred to the Committee on Ways and Means, and in …
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
IRS examiners, Indian tribal governments
Positive-direction: Indian tribal governments
Negative-direction: IRS examiners
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology