Reforming Disaster Recovery Act

Bill Number: H.R. 8291
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Housing and Community Development
Status: Introduced
Latest Action: 2026-04-15: Referred to the Committee on Financial Services, and in addition to the Committee on Appropriations, 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.
Last Updated: 2026-07-01T08:09:02Z

AI-Generated Summary

Purpose of the Legislation

This bill establishes a dedicated Long-Term Disaster Recovery Fund and authorizes the Department of Housing and Urban Development (HUD) to administer grants through a formalized Community Development Block Grant Disaster Recovery (CDBG-DR) program. Its goals include supporting long-term recovery, housing restoration, infrastructure repair, economic revitalization, and mitigation in areas affected by catastrophic major disasters, with emphasis on low- and moderate-income persons.

Key Provisions Outlined

Fund Creation and Use: Establishes the Long-Term Disaster Recovery Fund in the Treasury. Amounts may come from appropriations, transfers of unobligated prior disaster funds, or recaptured CDBG amounts. Up to 2% of funds support HUD administrative activities, technical assistance, and pre-disaster planning.
Office Establishment: Creates the Office of Disaster Management and Resiliency within HUD to coordinate disaster preparedness, response, and recovery efforts with FEMA, the Small Business Administration (SBA), and other agencies.
CDBG-DR Program (New Section 123): Authorizes formula-based grants to states, units of general local government, and Indian tribes. Requires grantee action plans, public comment periods, certifications on civil rights and benefit targeting, performance reviews, and environmental reviews. Grants must primarily benefit low- and moderate-income persons (minimum 70% unless waived).
Allocation and Timing: Mandates a formula to identify catastrophic disasters and allocate funds within 90–120 days of a presidential declaration. Allows preliminary grants up to $5 million before full determination. Sets a 6-year expenditure deadline (extendable by up to 4 years, or 6 years for mitigation).
Eligible Activities and Safeguards: Permits activities under existing CDBG rules plus mitigation. Prohibits use for costs covered by FEMA or the Army Corps of Engineers. Addresses duplication of benefits, requires insurance in hazard-prone areas, and limits administrative costs (capped at 10% for administration and 20% total).
Coordination and Data Sharing: Requires HUD to coordinate with FEMA and SBA. Authorizes data transfers to prevent duplication of benefits while protecting privacy through agreements.

Significant Changes to Existing Law Introduced

Shifts from ad-hoc supplemental appropriations to a standing fund and permanent statutory framework for CDBG-DR.
Replaces reliance on Federal Register notices with a regulatory formula for allocations, including mitigation add-ons up to 30%.
Introduces mandatory performance targets, spending thresholds, public dashboards, and recapture of unused funds after deadlines.
Adds requirements for proportional allocation across housing, economic, and infrastructure needs, plus specific standards for hazard-prone areas and relocation policies.
Expands HUD’s role in pre-disaster planning and technical assistance while allowing interchangeability of funds across qualifying disasters.

Potential Impacts on Government Agencies, Citizens, or International Relations

Government Agencies: HUD assumes expanded oversight and coordination responsibilities, potentially reducing duplication with FEMA and SBA through data sharing. Agencies may face new regulatory and reporting burdens but gain tools for faster, more predictable recovery.
Citizens: Disaster survivors, particularly low- and moderate-income households and vulnerable populations, may receive more targeted and timely assistance for housing and community needs. Provisions aim to minimize displacement and support mitigation to lower future risks.
International Relations: The bill does not address international matters.

Main Stakeholders Affected

HUD and its new Office of Disaster Management and Resiliency.
State governments, local governments, and Indian tribes as grantees.
FEMA and the SBA through coordination and data-sharing requirements.
Disaster-impacted communities, with priority for low- and moderate-income persons and businesses.
Congress, through appropriations and oversight of the Fund.

Notable Legal, Constitutional, or Political Implications

The bill builds on the Housing and Community Development Act of 1974 and the Stafford Act without raising apparent constitutional issues. It permits waivers of certain statutory requirements (excluding fair housing, labor, and environmental rules) upon public finding of good cause. Politically, it emphasizes transparency, accountability, and targeting of benefits to lower-income groups while creating mechanisms for performance enforcement and fund recapture.

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

Sponsor

Rep. Green, Al [D-TX-9]

Cosponsors (2)

Rep. Tlaib, Rashida [D-MI-12], Rep. Neguse, Joe [D-CO-2]

Recent Actions

2026-04-15: Referred to the Committee on Financial Services, and in addition to the Committee on Appropriations, 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.
2026-04-15: Referred to the Committee on Financial Services, and in addition to the Committee on Appropriations, 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.
2026-04-15: Introduced in House
2026-04-15: Introduced in House

Bill Versions

Reforming Disaster Recovery Act — issued 2026-04-15 — PDF (54 pages)