HR3759-119

What This Bill Does

The Streamlined FEMA Cost Exemption Act changes how FEMA and the President recover and waive disaster-assistance overpayments or duplicative aid under the Stafford Act. Section 2 shortens the period during which assistance is protected from recoupment only if criteria are met, replacing a three-year reference with two years. Section 3 restores presidential waiver authority for the Stafford Act's general prohibition on duplicative assistance when a governor requests a waiver on behalf of a state, person, business concern, or other disaster-loss entity and the President finds the waiver is in the public interest and will not result in waste, fraud, or abuse. FEMA and other administering agencies' recommendations, cost effectiveness, equity and good conscience, and public policy may be considered, and the request must be granted or denied within 45 days. The bill also prevents the President from treating a loan as duplicative assistance if all federal assistance is used toward the disaster loss. Sections 4 and 707 allow the FEMA Administrator to waive recoupment of otherwise eligible funds for covered projects under Stafford Act sections 403, 406, 407, 428, or 502 when the excess is no more than five percent of total project cost. Sections 5 and 708 require FEMA to establish an acceptable error ratio for eligibility-negotiation allocations and ensure amounts within that ratio are still used for eligible purposes.

Who Benefits and How

Disaster survivors benefit if loan assistance and duplicative-aid waivers prevent recoupment after major disasters or emergencies. State governments benefit from governor-requested waiver authority and a 45-day decision deadline. Local governments managing FEMA projects benefit from a five-percent recoupment waiver for eligible project cost differences. Public assistance applicants benefit from an acceptable error ratio during FEMA eligibility negotiations.

Who Bears the Burden and How

FEMA recoupment staff must apply a shorter recoupment period, five-percent waiver authority, and an acceptable error ratio. The President and White House disaster staff must decide governor waiver requests within 45 days. Governors must assemble waiver requests and justify public-interest and waste-fraud-abuse findings. Federal taxpayers may bear costs when FEMA or the President waives recoupment of disaster assistance.

Key Provisions

• Shortens the Stafford Act recoupment reference from three years to two years.
• Restores presidential waiver authority for duplicative disaster assistance on governor request.
• Requires waiver requests to be granted or denied within 45 days.
• Prohibits treating loans as duplicative assistance when all federal funds address the disaster loss.
• Allows FEMA to waive recoupment for covered project excess costs of five percent or less.
• Requires FEMA to establish an acceptable error ratio for allocation eligibility negotiations.