S. 1180Senate118th Congress (2023-2025)In Committee

FEMA Loan Interest Payment Relief Act

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Updated January 20, 2026 at 6:16 AM UTC

The FEMA Loan Interest Payment Relief Act amends the Stafford Disaster Relief and Emergency Assistance Act to let FEMA reimburse local governments and electric cooperatives for interest they paid on loans used for disaster‑related activities. It defines "qualifying interest" as the lower of the actual interest paid or the interest that would have been owed at the current prime rate, and a "qualifying loan" as one where at least 90% of the funds support FEMA‑assisted projects. The reimbursement authority applies to interest incurred in the five years before the law takes effect.

Key Provisions

Defines "qualifying interest" as the lesser of actual interest paid or interest at the prime rate.
Defines a "qualifying loan" as a loan to a local government or electric cooperative where at least 90% of proceeds fund FEMA‑assisted activities.
Authorizes the FEMA Administrator, acting for the President, to reimburse eligible entities for qualifying interest payments.
Makes interest incurred in the five years prior to enactment eligible for reimbursement.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

April 18, 2023

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SenateIntro Referral

Introduced in Senate

April 18, 2023

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

April 18, 2023

Bill Text

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Introduced in SenateIssued April 18, 2023

118th CONGRESS

1st Session

S. 1180

IN THE SENATE OF THE UNITED STATES

April 18, 2023

Mr. Rubio (for himself and Mr. Scott of Florida) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide for the authority to reimburse local governments or electric cooperatives for interest expenses, and for other purposes.

Short title

This Act may be cited as the FEMA Loan Interest Payment Relief Act.

Reimbursement of interest payments related to public assistance

(a)

In general

Title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end the following:

431.

Reimbursement of interest payments related to public assistance

(a)

Definitions

In this section:

(1)

Qualifying interest

The term qualifying interest means, with respect to a qualifying loan, the lesser of—

(A)

the actual interest paid to a lender for such qualifying loan; and

(B)

the interest that would have been paid to a lender if such qualifying loan had an interest rate equal to the prime rate most recently published on the Federal Reserve Statistical Release on selected interest rates.

(2)

Qualifying loan

The term qualifying loan means a loan—

(A)

obtained by a local government or electric cooperative; and

(B)

of which not less than 90 percent of the proceeds are used to fund activities for which such local government or electric cooperative receives assistance under this Act after the date on which such loan is disbursed.

(b)

Financial assistance

The President, acting through the Administrator of the Federal Emergency Management Agency, shall provide financial assistance to a local government or electric cooperative as reimbursement for qualifying interest.

(b)

Rule of applicability

Any qualifying interest (as such term is defined in section 431 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as added by this Act) incurred by a local government or electric cooperative in the 5 years preceding the date of enactment of this Act shall be treated as eligible for financial assistance for purposes of such section.