Disaster Management Costs Modernization Act

Bill Number: H.R. 744
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Emergency Management
Status: Introduced
Latest Action: 2025-10-03: Reported by the Committee on Transportation and Infrastructure. H. Rept. 119-320.
Last Updated: 2026-02-04T05:06:20Z

AI-Generated Summary

Purpose

The Disaster Management Costs Modernization Act (H.R. 744) aims to encourage states, Indian Tribes, and U.S. territories to complete and close disaster recovery projects more efficiently. It does this by allowing leftover funds originally set aside for managing specific disaster projects to be redirected toward management costs for other disaster-related activities, rather than returning them unused to the federal government.

Key Provisions

Definition of Excess Funds: Excess funds are the difference between the total amount authorized for management costs (up to 3% of certain disaster assistance grants) and the actual amount spent by the recipient (a state, tribe, or territory) when a grant is closed.
Availability and Use of Excess Funds: The President (through the Federal Emergency Management Agency, or FEMA) can make these excess funds available to recipients for:
Building capacity to prepare for, recover from, or reduce the effects of major disasters or emergencies.
Covering management costs for other major disasters, emergencies, preparedness activities, or mitigation efforts authorized under relevant sections of the Stafford Act (the main U.S. law for federal disaster relief).
Time Limit: These funds remain available for use for up to 5 years after they are made available.
Applicability: The changes apply to major disasters or emergencies declared on or after the bill's enactment date, and to funding appropriated on or after that date.
GAO Study Requirement: Within 180 days of enactment, the Government Accountability Office (GAO, an independent agency that audits federal programs) must report to Congress on:
Whether the set-aside amounts for management costs remain appropriate based on actual spending after enactment.
Historical data from the past 5 years, including management costs per disaster, amounts set aside, how funds were used, disaster durations, and reasons for those lengths.
No New Funding: The bill does not authorize any additional federal money; it only reallocates existing excess funds.

Significant Changes to Existing Law

Amends Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act), which currently allows up to 3% of certain disaster grants for management costs but requires unspent amounts to be returned.
Introduces a new subsection allowing reuse of unspent management funds for other eligible activities, with a 5-year availability period.
Expands the list of allowable uses beyond the original project's scope, shifting from a "use it or lose it" approach to one that promotes flexibility and efficiency.

Potential Impacts

On Government Agencies: FEMA and other federal entities may see faster project closures, reducing administrative burdens and long-term oversight. The GAO study could lead to future adjustments in funding formulas for better alignment with real needs.
On Citizens: Could improve overall disaster preparedness and recovery in affected communities by enabling quicker reallocation of funds to new or ongoing threats, potentially leading to more timely aid after events like hurricanes, floods, or wildfires.
On International Relations: Minimal direct impact, as the bill focuses on domestic disaster management; however, it could indirectly enhance U.S. resilience to climate-related events that have global implications.

Main Stakeholders Affected

States, Indian Tribes, and U.S. Territories: Primary recipients of disaster grants; they benefit from incentives to close projects and reuse funds for broader recovery efforts.
Grantees and Subgrantees: Local governments, nonprofits, and other entities handling on-the-ground disaster work, who gain flexibility in managing administrative costs.
Federal Agencies: FEMA (administers grants), the Department of Homeland Security (oversees FEMA), and GAO (provides oversight and analysis).
Congress: Receives the GAO report for potential future refinements to disaster funding laws.

Notable Legal, Constitutional, or Political Implications

Legal: Enhances flexibility within the Stafford Act without altering core eligibility rules, ensuring compliance with federal grant requirements while reducing waste. The 5-year availability period introduces a statute of limitations-like mechanism for fund use, which could streamline audits.
Constitutional: Aligns with Congress's spending power under Article I, as it reallocates appropriated funds without new authorizations, avoiding separation-of-powers issues.
Political: Promotes fiscal efficiency in disaster relief, appealing to bipartisan interests in reducing government waste. The GAO study provides a neutral mechanism for ongoing evaluation, potentially influencing future appropriations debates amid rising disaster costs due to climate change. No major controversies anticipated, given the bill's narrow focus and multi-sponsor support.

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

Sponsor

Rep. Neguse, Joe [D-CO-2]

Cosponsors (11)

Rep. Ezell, Mike [R-MS-4], Rep. Harder, Josh [D-CA-9], Rep. Stanton, Greg [D-AZ-4], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Bonamici, Suzanne [D-OR-1], Rep. Jayapal, Pramila [D-WA-7], Rep. Titus, Dina [D-NV-1], Rep. Raskin, Jamie [D-MD-8], Rep. Carson, André [D-IN-7], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Fulcher, Russ [R-ID-1]

Recent Actions

2025-10-03: Reported by the Committee on Transportation and Infrastructure. H. Rept. 119-320.
2025-10-03: Placed on the Union Calendar, Calendar No. 274.
2025-10-03: Reported by the Committee on Transportation and Infrastructure. H. Rept. 119-320.
2025-02-26: Ordered to be Reported by Voice Vote.
2025-02-26: Committee Consideration and Mark-up Session Held
2025-02-26: Subcommittee on Economic Development, Public Buildings, and Emergency Management Discharged
2025-01-29: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
2025-01-28: Referred to the House Committee on Transportation and Infrastructure.
2025-01-28: Introduced in House
2025-01-28: Introduced in House

Bill Versions

Disaster Management Costs Modernization Act — issued 2025-01-28 — PDF (6 pages)
Disaster Management Costs Modernization Act — issued 2025-10-03 — PDF (8 pages)