HR744-119

What This Bill Does

The Disaster Management Costs Modernization Act amends section 324 of the Stafford Act to let FEMA disaster and emergency grantees keep certain unused management-cost funds after an award closes. It defines excess funds for management costs as the gap between the authorized management-cost amount and the amount actually spent by the grantee or subgrantee at grant closeout. The President may make those excess funds available to grantees or subgrantees receiving assistance under Stafford Act sections 403, 404, 406, 407, or 502. The funds can then be used for capacity-building to prepare for, recover from, or mitigate disasters and emergencies, or for management costs tied to disasters, emergencies, preparedness measures, or mitigation activities. The funds remain available for five years. The bill applies only to disasters or emergencies declared after enactment and funded with post-enactment appropriations, requires a GAO report within 180 days on actual management costs, and authorizes no additional appropriations.

Who Benefits and How

State emergency management agencies benefit because unused FEMA management-cost dollars can stay available for additional preparedness, recovery, mitigation, or management-cost work instead of disappearing at closeout. Tribal governments receiving FEMA assistance benefit from the same five-year flexibility when they are grantees or subgrantees under covered Stafford Act programs. Local government emergency management offices benefit because subgrantees can use retained excess funds for capacity-building and management activities connected to future disasters or emergencies. Disaster recovery and mitigation contractors may see more project opportunities when grantees use retained funds for mitigation, preparedness, and management activities.

Who Bears the Burden and How

The Federal Emergency Management Agency must administer the new excess-fund process, track grant closeout amounts, and ensure funds are used only for the listed Stafford Act purposes during the five-year availability period. The Government Accountability Office must prepare a report within 180 days on actual management costs, set-aside amounts, uses, disaster lengths, and reasons for those lengths over the prior five-year disaster period. Congressional oversight committees must review that report to decide whether management-cost set-asides are appropriate. Federal budget managers bear a constraint because the bill authorizes no additional appropriations, so flexibility must operate within already appropriated disaster funds.

Key Provisions

• Amends Stafford Act section 324 to define excess funds for management costs at grant closeout.
• Authorizes the President to make excess management-cost funds available to FEMA grantees and subgrantees under covered disaster and emergency assistance sections.
• Expands allowable uses to disaster preparedness, recovery, mitigation, emergency management, and management-cost activities.
• Provides a five-year availability period for retained excess management-cost funds.
• Requires GAO to report within 180 days on actual disaster management costs, set-asides, uses, disaster length, and reasons for duration.
• Bars additional appropriations for carrying out the Stafford Act amendments.