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S. 773Senate119th Congress (2025-2027)In Committee

Disaster Management Costs Modernization Act

Sponsored by Margaret Wood HassanSen. Margaret Wood Hassan (D-NH)
Introduced February 27, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:23 AM UTC

The Disaster Management Costs Modernization Act updates the Stafford Disaster Relief and Emergency Assistance Act to let states, Indian tribes, and territories recycle any unused management money from disaster grants for other recovery projects. By defining and authorizing the use of these excess funds, the bill aims to speed project closures and improve disaster response capacity, while requiring a GAO review of current management cost allocations. No additional funding is created; the changes only affect how existing grant money can be applied.

Key Provisions

  • Amends the Stafford Act to let states, Indian tribes, and territories use any leftover (excess) management money from a disaster grant for management costs on other disaster recovery projects, encouraging them to close projects promptly.
  • Defines “excess funds for management costs” as the difference between the amount authorized for management and what was actually spent when a grant is closed.
  • Allows the President to make those excess funds available to grant recipients for activities that build capacity to prepare for, recover from, or mitigate disasters, and for management costs of any disaster, emergency, preparedness, or mitigation measure.
  • Specifies that any excess funds transferred may be used for up to five years after they are made available.
  • Applies only to disaster grants awarded after the law’s enactment and funded with appropriations made after that date.
  • Requires the Government Accountability Office to study actual management costs within 180 days of enactment and report on whether the set‑aside amounts are appropriate.
  • Clarifies that no new money is authorized; the changes only affect how existing grant funds can be re‑used.

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

February 27, 2025

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SenateIntro Referral

Introduced in Senate

February 27, 2025

SenateIntro Referral

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

Homeland Security and Governmental Affairs Committee

February 27, 2025

Bill Text

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Introduced in SenateIssued February 27, 2025

II

119th CONGRESS

1st Session

S. 773

IN THE SENATE OF THE UNITED STATES

February 27, 2025

Ms. Hassan (for herself and Mr. Lankford) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

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—

(A)

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 major disaster declared under section 401 of such Act (42 U.S.C. 5170) during the 5-year period preceding the date of the report;

(B)

the amount set aside for those management costs;

(C)

the use of those management costs;

(D)

the length of each such major disaster; and

(E)

the reason for the length of each such major disaster.

(d)

No additional funds

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