H.R. 744House119th Congress (2025-2027)In Committee

Disaster Management Costs Modernization Act

Sponsored by Joe NeguseRep. Joe Neguse (D-CO)
Introduced January 28, 2025

AI-Generated Summary

Updated November 24, 2025 at 3:13 AM UTC

The Disaster Management Costs Modernization Act changes the Stafford Disaster Relief Act so that states, Indian tribes, and territories can take any leftover management money from a disaster recovery project and apply it to management costs for other disaster projects. By allowing this re‑use of excess funds, the bill aims to encourage quicker project closures and more flexible use of existing disaster assistance, without providing additional appropriations. It also mandates a GAO study to assess current management‑cost allocations.

Key Provisions

  • Amends the Stafford Act to create a new category called “excess funds for management costs,” which is the amount left over after a disaster grant’s authorized management costs are spent.
  • Allows the President to make those excess funds available to the same grantee or sub‑grantee for use on other disaster‑related activities, such as building capacity, preparedness, recovery, or mitigation for any major disaster or emergency.
  • Specifies that the transferred excess funds can be used for management costs of any disaster, emergency, preparedness measure, or mitigation activity authorized under the Stafford Act and must be used within five years of being made available.
  • Applies only to disaster grants awarded after the bill becomes law and to disasters declared after that date.
  • Requires the Government Accountability Office to report within 180 days on how management costs have been used in past disasters and whether the amounts set aside are appropriate.
  • Clarifies that no new money is authorized; the bill only changes how existing grant funds can be re‑used.

Legislative Activity

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7 earlier actions
HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 274.

October 3, 2025

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HouseIntro Referral

Introduced in House

January 28, 2025

HouseIntro Referral

Referred to the House Committee on Transportation and Infrastructure.

January 28, 2025

HouseCommittee

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

January 29, 2025

HouseCommittee

Subcommittee on Economic Development, Public Buildings, and Emergency Management Discharged

February 26, 2025

HouseCommittee

Committee Consideration and Mark-up Session Held

February 26, 2025

HouseCommittee

Ordered to be Reported by Voice Vote.

February 26, 2025

HouseCommittee

Reported by the Committee on Transportation and Infrastructure. H. Rept. 119-320.

October 3, 2025

HouseCalendars

Placed on the Union Calendar, Calendar No. 274.

October 3, 2025

Bill Text

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Reported in HouseIssued October 3, 2025

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Union Calendar No. 274

119th CONGRESS

1st Session

H. R. 744

[Report No. 119–320]

IN THE HOUSE OF REPRESENTATIVES

January 28, 2025

Mr. Neguse (for himself, Mr. Ezell, Mr. Harder of California, Mr. Stanton, Ms. Stansbury, Ms. Bonamici, Ms. Jayapal, Ms. Titus, and Mr. Raskin) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

October 3, 2025

Additional sponsors: Mr. Carson, Mr. Fitzpatrick, and Mr. Fulcher

October 3, 2025

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed


A BILL

To amend section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act to incentivize States, Indian Tribes, and Territories to close disaster recovery projects by authorizing the use of excess funds for management costs for other disaster recovery projects.


1.

Short title

This Act may be cited as the Disaster Management Costs Modernization Act.

2.

Use of excess funds for management costs

(a)

In general

Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5165b) is amended—

(1)

in subsection (b)(2)—

(A)

by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly; and

(B)

in the matter preceding clause (i), as so redesignated, by striking provide the following percentage rates and inserting “provide—

(A)

excess funds for management costs as described in subsection (c); and

(B)

the following percentage rates

;

(2)

by redesignating subsection (c) as subsection (d); and

(3)

by inserting after subsection (b) the following:

(c)

Use of excess funds for management costs

(1)

Definition

In this subsection, the term excess funds for management costs means the difference between—

(A)

the amount of the applicable specific management costs authorized under subsection (b)(1) and subsection (b)(2)(B); and

(B)

as of the date on which the grant award is closed, the amount of funding for management costs activities expended by the grantee or subgrantee receiving the financial assistance for costs described in subparagraph (A).

(2)

Availability of excess funds for management costs

The President may make available to a grantee or subgrantee receiving financial assistance under section 403, 404, 406, 407, or 502 any excess funds for management costs.

(3)

Use of funds

Excess funds for management costs made available to a grantee or subgrantee under paragraph (2) may be used for—

(A)

activities associated with building capacity to prepare for, recover from, or mitigate the impacts of a major disaster or emergency declared under section 401 or 501, respectively; and

(B)

management costs associated with any—

(i)

major disaster;

(ii)

emergency;

(iii)

disaster preparedness measure; or

(iv)

mitigation activity or measure authorized under section 203, 204, 205, or 404.

(4)

Availability

Excess funds for management costs made available to a grantee or subgrantee under paragraph (2) shall remain available to the grantee or subgrantee until the date that is 5 years after the date on which the excess funds for management costs are made available under paragraph (2).

.

(b)

Applicability

The amendments made by subsection (a) shall apply with respect to any grant award in relation to a major disaster or emergency declared under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170, 5191)—

(1)

the declaration of which is made on or after the date of enactment of this Act; and

(2)

that is funded with amounts appropriated on or after the date of enactment of this Act.

(c)

GAO study

Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report—

(1)

on the actual management costs described in section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5165b) during the period of a major disaster declaration under section 401 of such Act (42 U.S.C. 5170) to determine whether the amount set aside for those management costs after the date of enactment of this Act is appropriate; and

(2)

that includes the management costs described in section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5165b) for each disaster declared under during the period of a major disaster declaration under section 401 of such Act (42 U.S.C. 5170) during the 5-year period preceding the date of the report, the amount set aside for those management costs, the use of those management costs, the length of each disaster, and the reason for the length of each disaster.

(d)

No additional funds

No additional funds are authorized to be appropriated to carry out the amendments made by subsection (a).

October 3, 2025

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed