S. 2721Senate118th Congress (2023-2025)In Committee

Federal Disaster Responsibility Act

AI-Generated Summary

Updated January 20, 2026 at 11:08 AM UTC

The Federal Disaster Responsibility Act provides $16.5 billion for fiscal year 2023 to fund the Stafford Disaster Relief and Emergency Assistance Act and expands disaster‑related tax relief for individuals affected by qualified disasters from 2021‑2023. It also extends tax benefits to U.S. possessions, allows the USDA to award block‑grant assistance to states and territories, waives certain easement rules for flood‑damage projects, and requires a Department of Defense report on Hurricane Idalia damage. The bill mainly impacts disaster victims, taxpayers, state and territorial governments, U.S. possessions, the Department of Agriculture, and the Department of Defense.

Key Provisions

Appropriates $16.5 billion for FY2023 to cover expenses under the Stafford Disaster Relief and Emergency Assistance Act for major disasters.
Defines “qualified disaster area” for disasters declared Dec 28 2020‑Dec 31 2023 (excluding COVID‑only declarations) and provides special tax rules: lowers the $500 personal casualty loss floor, adds net disaster loss to the standard deduction, and prevents limitation under §56(b)(1)(E).
Extends disaster‑related tax relief payments to U.S. possessions, with separate treatment for those with mirror‑code tax systems and those without.
Amends the 2023 Disaster Relief Supplemental Appropriations Act to let the Secretary of Agriculture give block‑grant assistance to eligible states and territories.
Waives easement requirements of the Water Resources Development Act for reconstruction of flood and storm damage projects using Corps of Engineers funds.
Requires the Secretary of Defense to report within 30 days on Hurricane Idalia damage to DoD bases in Florida, including impact and repair cost estimates.
Declares all amounts provided as an emergency requirement under budgetary rules.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

September 5, 2023

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SenateIntro Referral

Introduced in Senate

September 5, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

September 5, 2023

Floor Debate

3 members

What members said about S. 2721 on the floor

2 Republicans1 Democrat

Sen. Rick ScottR-FL · Sep 21, 2023

Mr. President, I was Governor of Florida from January 2011 through January 2019, and we had a variety of disasters. We had four major hurricanes; we had wildfires; we had flooding--a variety of…

Mr. President, I was Governor of Florida from January 2011 through January 2019, and we had a variety of disasters. We had four major hurricanes; we had wildfires; we had flooding--a variety of things.

What you find out in that role as Governor is you find out the importance of the Federal Government. FEMA is very important to disaster relief.

Disaster relief is partially borne by whomever is impacted, a family or a business. Partially, it is impacted by the city or county, partially by the State, and partially by the Federal Government.

My experience with FEMA is they are hard-working individuals that work hard to try to be a good partner with our States.

Last September, about 12 months ago, we had a horrible hurricane in our State, Hurricane Ian. We lost over 150 people. We had unbelievable damage. FEMA has been a partner in that hurricane relief.

Just recently--about 3 weeks ago, 4 weeks ago--we had another hurricane, Idalia, and again FEMA came down and is a partner in that hurricane relief.

I met with President Biden 3 weeks ago when he came down to tour the damage, and I talked to him about the importance of getting FEMA fully funded.

There is a Federal Disaster Relief Fund that is part of FEMA that pays for things like debris pickup, helps individuals who have lost their homes, helps our small businesses--a variety of things like that.

Right now, this thing is getting low on funds. I checked on September 11. It is down to $2.5 billion. And they project, by the end of this month, it will be down to $550 million. What they also told me is that there is a community in every State in this country that is getting impacted by the FEMA Disaster Relief Fund.

So I have been trying, for months, to get a vote on a bill which is pretty commonsense. No. 1, it will put funds into FEMA so they can provide help for all these communities in every State. No. 2, the next thing it does is helps our farmers.

Our farmers in Florida have been waiting for almost 12 months for relief from the Department of Agriculture. Historically, what the Department of Agriculture did, especially when I was Governor, was they would provide a block grant to the State, to our farmers, so the money could get out to our farmers quicker.

For whatever reason, Secretary Vilsack, the Secretary of Ag, has decided now that he has to have separate legislation from Congress that gives him specific authority that he can do a block grant.

It has never happened before. But for whatever reason, he believes it has to happen now. That is in this bill.

The Army of Corps of Engineers is a key partner in beach renourishment in any State that has been impacted. I know our Presiding Officer had wildfires, and I am sure their beaches have had some impact. So it would also help our Army Corps of Engineers, help with beach renourishment, and also help our military installations after a disaster.

So mine is a commonsense bill. It impacts some community in every State in the country. So what I am asking for is a stand-alone vote on my bill. It is called the Federal Disaster Responsibility Act. I hope every Senator here will unanimously agree that we should do this.

Mr. President, as in legislative session, I ask unanimous consent that the Committee on Finance be discharged

from further consideration of S. 2721 and the Senate proceed to its immediate consideration; I further ask that the Scott-Rubio substitute amendment at the desk be considered and agreed to; that the bill, as amended, be considered read a third time and the Senate vote on passing the bill, as amended, with a 60-vote affirmative threshold required for passage of the bill; finally, if passed, the motion to reconsider be considered made and laid upon the table.

Mr. President, I appreciate my colleague's concern about some of these other issues. I think we ought to have a discussion about those and see if we can get something done. But right now, the Disaster Relief Fund is going to be down to the $550 million by the end of this month. There is a community in every State--and this fund only covers where it fits within the parameters where FEMA says that the Federal Government is responsible for a portion of it. But this would help a community in every State in the country. So I hope, at some point, we can get this passed. There is a community in every State in this country that is getting impacted by this.

Sen. Sheldon WhitehouseD-RI · Sep 21, 2023

Mr. President, reserving the right to object, may I say that I appreciate that Senator Scott would like to accelerate disaster aid to his home State. But let me observe that disasters have taken…

Mr. President, reserving the right to object, may I say that I appreciate that Senator Scott would like to accelerate disaster aid to his home State. But let me observe that disasters have taken place not only in Florida but in the Presiding Officer's home State of Hawaii, in Vermont, in New York, in Louisiana, and other States as well.

And in response to that, what President Biden did was made a request to Congress in August to pass a comprehensive emergency supplemental that includes an increase in funding for FEMA's Disaster Relief Fund. It also includes $45 million for the Department of Ag and $15 million for the Department of Interior to support more than 20,000 firefighters who are out there braving this explosion in new wildfires that are taking place across our country.

This is driven by climate change. Let's be clear about that. We have had 14 named storms so far in the 2023 hurricane season. If you look back at last year, weather-related damage in the United States topped 165 billion. We have had testimony in my Budget Committee from OMB that climate change will cost the Federal budget $2 trillion per year.

We cannot address this piecemeal, and we cannot address it only by providing disaster relief and not doing anything useful to head off these risks. Some of these are what economists call systemic risks. ``Systemic'' doesn't sound like it is a very big word, but what it means is the risk cascades out of the area where the economic harm is taking place to trash the whole economy. Just the way the 2008 mortgage meltdown didn't just trash the banks that had the bad mortgages, it took down the whole U.S. economy--that is predicted for coastal property value crash; that is predicted for a wildfire uninsurability crash; that is predicted for a carbon bubble crash.

And the insurance meltdown has already begun in Florida, in Louisiana, and in Texas. So the warning signs of another 2008-scale financial crisis are already flashing red. And behind those immediate warning signs looms the collapse of Earth's basic natural operating systems that science has predicted for decades and with real precision.

We need to do a lot more than just clean up. We do need to clean up the disasters, but we also need to get the predisaster preparation resources in because we know this is coming, and we know it is getting worse. And we absolutely need to head off the root cause of all of this, which is fossil fuel emissions choking our atmosphere with greenhouse gases, heating up the Earth, and causing us to spin out from basic conditions of habitability of the Earth that have existed for tens of thousands of years.

So what we should do is pass the continuing resolution with full funding for the President's supplemental request for FEMA's Disaster Relief Fund, for the Department of Agriculture firefighter money, for the Department of Interior firefighter money, and while we are at it, because President Zelenskyy was here today, I will also add that it is really important to continue to support Ukraine.

For those reasons, I will object.

Sen. Mike LeeR-UT · Sep 19, 2023

Madam President, I submit the following notice in writing: In accordance with Rule V of the Standing Rules of the Senate, I hereby give notice in writing that it is my intention to move to suspend…

Bill Text

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Introduced in SenateIssued September 5, 2023

118th CONGRESS

1st Session

S. 2721

IN THE SENATE OF THE UNITED STATES

September 5, 2023

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

A BILL

To appropriate amounts to carry out the Robert T. Stafford Disaster Relief and Emergency Assistance Act, and for other purposes.

Short title

This Act may be cited as the Federal Disaster Responsibility Act.

Disaster relief fund

Out of amounts in the Treasury not otherwise appropriated, there are appropriated for fiscal year 2023 $16,500,000,000, to remain available until expended, for necessary expenses to carry out the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) with respect to major disasters declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170).

Tax relief related to certain disasters occurring in 2021, 2022, and 2023

(a)

Definitions

For purposes of this section—

(1)

Qualified disaster area

(A)

In general

The term qualified disaster area means any area with respect to which a major disaster was declared, during the period beginning after December 27, 2020, and ending on December 31, 2023, by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2020, and on or before December 31, 2023.

(B)

Exceptions

(i)

Disaster receiving relief under previous acts

Such term shall not include any area which is a qualified disaster area solely by reason of section 301 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.

(ii)

Covid–19 exception

Such term shall not include any area with respect to which such a major disaster has been so declared only by reason of COVID–19.

(2)

Qualified disaster

The term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area.

(3)

Incident period

The term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred (except that for purposes of this title such period shall not be treated as ending after the date which is 30 days after the date of the enactment of this Act).

(b)

Special rules for qualified disaster-Related personal casualty losses

(1)

In general

If an individual has a net disaster loss for any taxable year—

(A)

the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of—

(i)

such net disaster loss, and

(ii)

so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual,

(B)

in the case of qualified disaster-related personal casualty losses, section 165(h)(1) of such Code shall be applied to by substituting $500 for $500 ($100 for taxable years beginning after December 31, 2009),

(C)

the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss, and

(D)

section 56(b)(1)(E) of such Code shall not apply to so much of the standard deduction as is attributable to the increase under subparagraph (C) of this paragraph.

(2)

Net disaster loss

For purposes of this subsection, the term net disaster loss means the excess of qualified disaster-related personal casualty losses over personal casualty gains (as defined in section 165(h)(3)(A) of the Internal Revenue Code of 1986).

(3)

Qualified disaster-related personal casualty losses

For purposes of this subsection, the term qualified disaster-related personal casualty losses means losses described in section 165(c)(3) of the Internal Revenue Code of 1986 which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such qualified disaster.

(c)

Treatment of certain possessions

(1)

Payments to possessions with mirror code tax systems

The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of the provisions of this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

(2)

Payments to other possessions

The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents.

(3)

Mirror code tax system

For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

(4)

Treatment of payments

For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.

(5)

Coordination with United States income taxes

In the case of any person with respect to whom a tax benefit is taken into account with respect to the taxes imposed by any possession of the United States by reason of this subsection, the Internal Revenue Code of 1986 shall be applied with respect to such person without regard to the provisions of this subsection which provide such benefit.

Disaster Relief Supplemental Appropriations Act, 2023 amendment

Title I of the Disaster Relief Supplemental Appropriations Act, 2023 (division N of Public Law 117–328), is amended, in the matter under the heading Office of the Secretary under the heading Processing, Research and Marketing under the heading AGRICULTURAL PROGRAMS under the heading DEPARTMENT OF AGRICULTURE, by inserting : Provided further, That the Secretary of Agriculture may provide assistance for losses described under this heading in this Act in the form of block grants to eligible States and territories before the period at the end.

Rehabilitation and repair of flood and storm damage reduction projects

Any requirement under section 103 of the Water Resources Development Act of 1986 (33 U.S.C. 2213) with respect to easements shall not apply to construction or rehabilitation and repair of damages to shore protection projects caused by natural disasters using amounts made available to the Corps of Engineers for flood and storm damage reduction projects.

Department of Defense assessment

(a)

In general

Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report assessing damage from Hurricane Idalia to Department of Defense bases and installations in the State of Florida.

(b)

Elements

The report required under subsection (a) shall include—

(1)

an assessment of the impact to Department of Defense operations; and

(2)

an estimate of costs to repair damages and restore bases and installations to full readiness.

Emergency designation

(a)

In general

The amounts provided by this Act are designated as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(g)).

(b)

Designation in house and senate

The amounts provided by this Act are designated as being for an emergency requirement pursuant to section 4001(a)(1) of S. Con. Res. 14 (117th Congress), the concurrent resolution on the budget for fiscal year 2022, and section 1(e) of H. Res. 1151 (117th Congress), as engrossed in the House of Representatives on June 8, 2022.