H.R. 2342House119th Congress (2025-2027)In Committee

State-Managed Disaster Relief Act

Introduced March 25, 2025

AI-Generated Summary

Updated November 24, 2025 at 1:40 AM UTC

The State‑Managed Disaster Relief Act amends the Stafford Disaster Relief Act to let states and Indian tribal governments receive a one‑time lump‑sum payment—equal to 80 % of the estimated public‑assistance cost—for certain small disasters instead of going through the standard Public Assistance program. This option is limited to disasters whose estimated damages are relatively low (no more than 125 % of the state’s per‑capita indicator) and requires the state or tribe to have an approved administrative plan and to agree on the payment amount with FEMA within 90 days. The funds can be used for any recovery needs as long as they meet existing environmental, historic preservation, civil‑rights, and resiliency requirements, and recipients must report their expenses annually to FEMA.

Key Provisions

  • A state governor or tribal governing body can ask FEMA for a lump‑sum payment instead of the usual Public Assistance (PA) program for a "covered small disaster".
  • The lump‑sum amount is set at 80 % of the estimated total cost that would have been paid under the PA program.
  • If a lump‑sum payment is accepted, the state or tribe cannot also receive PA assistance for that same disaster, and the payment amount is generally final (unless FEMA adjusts it for unforeseen, no‑fault circumstances).
  • States or tribes must have an approved administrative plan in place before receiving funds and must agree on the payment amount with FEMA within 90 days of the incident.
  • Recipients may use the funds for any recovery actions they deem appropriate, provided the use complies with environmental, historic preservation, civil‑rights, and resiliency laws.
  • Annual expense reports for each covered small disaster must be submitted to FEMA.

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.

March 25, 2025

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HouseIntro Referral

Introduced in House

March 25, 2025

HouseIntro Referral

Referred to the House Committee on Transportation and Infrastructure.

March 25, 2025

HouseCommittee

Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.

March 25, 2025

Bill Text

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Introduced in HouseIssued March 25, 2025

I

119th CONGRESS

1st Session

H. R. 2342

IN THE HOUSE OF REPRESENTATIVES

March 25, 2025

Mr. Rouzer (for himself and Mr. Carter of Louisiana) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

A BILL

To establish alternate procedures for lump sum payments for certain covered small disasters, and for other purposes.

1.

Short title

This Act may be cited as the State-Managed Disaster Relief Act.

2.

Alternative procedures for covered small disasters

The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) is amended by adding at the end the following:

VIII

Alternative Procedures for Covered Small Disasters

801.

Alternative procedures for covered small disasters

(a)

In general

The Governor of a State or the governing body of an Indian tribal government for the area in which a covered small disaster occurs may request a lump sum payment of the estimated damages calculated under subsection (b) for such disaster in lieu of any assistance under the Public Assistance Program for such disaster.

(b)

Calculation

Notwithstanding the requirements of section 206.47(b) of title 44, Code of Federal Regulations, a payment under subsection (a) shall be equal to the amount that is 80 percent of the total estimated cost of assistance under the Public Assistance Program for a covered small disaster in the area of jurisdiction of the State or Indian tribal government requesting such payment.

(c)

Limitations

(1)

In general

A State or Indian tribal government receiving a payment under this section may not receive assistance under the Public Assistance Program with respect to the covered small disaster for which a payment was accepted under this section.

(2)

Final payment

(A)

In general

A payment under this section may not be increased or decreased based on actual costs calculated for a covered small disaster.

(B)

Exception

Notwithstanding subparagraph (A), the Administrator may adjust a payment under this section in the event of unforeseen circumstances at no fault of the applicant.

(3)

Selection of option

A State or Indian tribal government may designate to the Federal Emergency Management Agency on an annual basis the interest of such State or Indian tribal government in participating in the small disaster authority.

(4)

Indication

A State or Indian tribal government shall indicate at the time of the submission of a request for a major disaster declaration that such State or Indian tribal government is requesting assistance for such incident under this section.

(5)

Timing requirement

The Administrator and the State or Indian tribal government shall—

(A)

reach an agreement on the amount under subsection (b) not later than 90 days after the incident; or

(B)

administer the incident under the procedures and authorities for the Public Assistance Program.

(6)

Administrative plan

To be eligible for assistance under this section, a State or Indian tribal government shall have an approved administrative plan in place at the time of the obligation of funds provided under this section.

(d)

Use of funds

A State or Indian tribal government receiving a payment under this section may use such payment for recovery for the covered small disaster in any manner determined appropriate by the respective Governor or governing body of such State or Indian tribal government if such funds—

(1)

address impacts and needs resulting from the declared disaster incident;

(2)

are provided to State, Indian tribal government, territorial and local government agencies, and private non-profit entities eligible for Public Assistance Program funding; and

(3)

are used in a manner that complies with applicable environmental, historic preservation, and civil rights laws (including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the National Historic Preservation Act of 1966 (54 U.S.C. 300101 et seq.)) and any applicable resiliency standards under section 203.

(e)

Compliance with other laws and regulations

A State or Indian tribal government shall be responsible for ensuring compliance under subsection (d)(3).

(f)

Rule of construction

Nothing in this section shall be construed to affect the eligibility of a State or Indian tribal government for assistance under section 404.

(g)

Report to FEMA

A State or governing body of an Indian tribal government shall submit to the Federal Emergency Management Agency an annual report of expenses for a covered small disaster in the area of jurisdiction of the respective State or Indian tribal government.

(h)

Savings clause

Nothing in this section shall be construed to affect any program in title IV or V that is not a Public Assistance Program.

(i)

Definitions

In this section:

(1)

Covered small disaster

The term covered small disaster means a major disaster declared under section 401 or an emergency declared under section 501 with estimated damage eligible under the Public Assistance Program of less than or equal to 125 percent of the State’s per capita indicator.

(2)

Public Assistance Program

The term Public Assistance Program means the programs under sections 403, 406, 407, and 502.

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