DLARA

Bill Number

H.R. 4238

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Commerce

Status

Passed House

Latest Action

2026-06-24: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 448.

Last Updated

2026-07-02T20:55:59Z

AI-Generated Summary

Summary of H.R. 4238: Disaster Loan Accountability and Reform Act (DLARA)

Purpose of the Legislation

This Act aims to enhance accountability and transparency in the Small Business Administration's (SBA) disaster loan program by strengthening reporting requirements, budget justifications, funding notifications, and independent oversight.

Key Provisions Outlined

• Monthly Disaster Loan Reports: Amends existing law to require ongoing reports on SBA disaster loans regardless of major disaster declarations; updates estimates on funding depletion (including when funds reach 10% of appropriations); adds summaries of changes to obligation and expenditure assumptions; and prohibits official travel by the SBA Administrator if reports are late.
• Budget Request Requirements: Mandates separate statements in presidential budget submissions comparing requested appropriations for SBA disaster loan costs and administrative costs to their 10-year averages, with explanations for differences; applies similar requirements to COVID-EIDL loans.
• Limitations on Disaster Loans: Requires the SBA Administrator to notify congressional committees within 24 hours when available funds for direct disaster loans fall below 10% of the 10-year average annual cost.
• GAO Reports: Directs the Government Accountability Office (GAO) to produce reports on the SBA disaster loan account (including obligation rates and disbursement averages) and on the costs and subsidy effects of recent changes to loan terms from two specified final rules; requires an SBA response with an implementation plan.
• Budget and Forecasting Report: Requires the SBA Administrator to submit a report within 30 days on planned corrections to improve forecasting, data quality, and budget assumptions for disaster loans, followed by updates every 90 days until implementation is complete.

Significant Changes to Existing Law Introduced

• Expands the scope of monthly reporting under the Small Business Disaster Response and Loan Improvements Act of 2008 by removing time-limited triggers tied to major disasters.
• Adds new budget justification elements to Title 31 of the U.S. Code, requiring comparisons to historical averages for both loan costs and administrative expenses.
• Introduces a new notification trigger in Section 7(b) of the Small Business Act when funding levels drop significantly.
• Establishes mandatory GAO reviews and ongoing SBA reporting on program forecasting that were not previously required.

Potential Impacts

• On Government Agencies: Increases administrative burdens on the SBA through expanded reporting, potential restrictions on official travel, and required responses to GAO findings; may lead to more rigorous internal data management and forecasting processes.
• On Citizens: Indirectly affects disaster loan borrowers by promoting better oversight of fund availability and program efficiency, though no direct changes to loan eligibility or terms are made.
• On International Relations: No provisions address or impact international relations.

Main Stakeholders Affected

• The Small Business Administration and its Administrator.
• Congressional committees on Small Business and Appropriations in both the Senate and House.
• The Government Accountability Office.
• Recipients of SBA disaster loans (home, business, and economic injury types) and COVID-EIDL loans.

Notable Legal, Constitutional, or Political Implications

• Strengthens congressional oversight of executive branch spending and program administration in the disaster loan program.
• Introduces enforcement mechanisms such as travel restrictions for non-compliance with reporting deadlines.
• Focuses on fiscal accountability without altering core loan authorities or creating new entitlements.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moore, Tim [R-NC-14]

Cosponsors (19)

Rep. Davis, Donald G. [D-NC-1], Rep. Edwards, Chuck [R-NC-11], Del. King-Hinds, Kimberlyn [R-MP-At Large], Rep. Gimenez, Carlos A. [R-FL-28], Rep. Murphy, Gregory F. [R-NC-3], Rep. Donalds, Byron [R-FL-19], Rep. Fry, Russell [R-SC-7], Rep. Ciscomani, Juan [R-AZ-6], Rep. Rouzer, David [R-NC-7], Rep. Wilson, Joe [R-SC-2], Rep. LaMalfa, Doug [R-CA-1], Rep. Taylor, David J. [R-OH-2], Rep. Harrigan, Pat [R-NC-10], Rep. Flood, Mike [R-NE-1], Rep. Begich, Nicholas J. [R-AK-At Large], Rep. Shreve, Jefferson [R-IN-6], Rep. Luna, Anna Paulina [R-FL-13], Rep. Meuser, Daniel [R-PA-9], Rep. Goodlander, Maggie [D-NH-2]

Recent Actions

• 2026-06-24: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 448.
• 2026-06-23: Motion to reconsider laid on the table Agreed to without objection.
• 2026-06-23: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4143-4144)
• 2026-06-23: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
• 2026-06-23: DEBATE - The House proceeded with forty minutes of debate on H.R. 4238.
• 2026-06-23: Considered under suspension of the rules. (consideration: CR H4143-4145)
• 2026-06-23: Mr. Williams (TX) moved to suspend the rules and pass the bill, as amended.
• 2026-06-11: Placed on the Union Calendar, Calendar No. 603.
• 2026-06-11: Committee on the Budget discharged.
• 2026-06-11: Committee on the Budget discharged.
• 2026-06-11: Reported (Amended) by the Committee on Small Business. H. Rept. 119-695, Part I.
• 2026-06-11: Reported (Amended) by the Committee on Small Business. H. Rept. 119-695, Part I.
• 2026-05-20: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 0.
• 2026-05-20: Committee Consideration and Mark-up Session Held
• 2025-06-27: Referred to the Committee on Small Business, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Bill Versions

• Disaster Loan Accountability and Reform Act — issued 2026-06-23 — PDF (12 pages)
• Disaster Loan Accountability and Reform Act — issued 2025-06-27 — PDF (14 pages)
• Disaster Loan Accountability and Reform Act — issued 2026-06-24 — PDF (12 pages)
• Disaster Loan Accountability and Reform Act — issued 2026-06-11 — PDF (12 pages)

Related Bills

• S. 300 (119th Congress)