Summary of HR 744: Disaster Management Costs Modernization Act

Bill Overview

• Bill Number: HR 744
• Title: Disaster Management Costs Modernization Act
• Status: Placed on the Union Calendar, Calendar No. 274
• Introduced: January 28, 2025
• Primary Sponsor: Joe Neguse (CO)
• Cosponsors: Includes notable members such as Dina Titus, Russ Fulcher, and Pramila Jayapal.

Purpose of the Legislation

The Disaster Management Costs Modernization Act aims to amend Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The primary intent is to incentivize states, Indian tribes, and territories to efficiently close disaster recovery projects by allowing the use of excess funds for management costs associated with other disaster recovery projects.

Key Provisions

• Flexibility in Fund Usage: The bill permits grantees to apply management costs across all open disaster recovery projects within their jurisdiction, rather than being restricted to specific disasters.
• Extended Availability of Funds: Unspent management costs can be utilized for up to five years from the date of eligibility for capacity building, rather than being forfeited when a disaster project is closed.
• Eligible Costs: The legislation expands the types of management costs that can be covered, including those related to disaster response capacity and authorized mitigation activities.

Background and Need

The bill responds to challenges faced by state and local governments in managing multiple federal disaster declarations simultaneously. Currently, management costs are limited to specific disasters, which can hinder effective recovery efforts. The legislation is based on recommendations from a 2022 Government Accountability Office report and a report from the Wildfire Mitigation and Management Commission, both advocating for greater flexibility in the use of federal disaster recovery funds.

Impact

• States, Indian Tribes, and Territories: The bill will directly benefit these entities by providing them with more flexible funding options to manage disaster recovery efforts.
• Federal Emergency Management Agency (FEMA): The agency will be required to adjust its policies to accommodate the new provisions regarding management costs.
• Disaster Recovery Efficiency: By allowing for the reallocation of funds, the bill aims to streamline disaster recovery processes and enhance overall efficiency.

Legislative Timeline

• January 28, 2025: Introduced and referred to the House Committee on Transportation and Infrastructure.
• February 26, 2025: Ordered to be reported by voice vote after consideration in the Committee.
• October 3, 2025: Reported by the Committee on Transportation and Infrastructure and placed on the Union Calendar.

Related Legislation

• Companion Bills: HR 1923 and S 773 are related bills that address similar issues in disaster management.

This summary provides an overview of HR 744, highlighting its purpose, key provisions, and the potential impact on disaster recovery efforts across the United States.