Helene Small Business Recovery Act

Bill Summary: Helene Small Business Recovery Act (H.R. 2364)

Overview

The Helene Small Business Recovery Act is a legislative proposal designed to increase the flexibility of federal disaster assistance for individuals and businesses recovering from major disasters. Specifically, it seeks to allow the President to waive certain restrictions regarding the "duplication of benefits," ensuring that victims can access multiple streams of federal aid to fully cover their losses.

Main Purpose and Intent

Under current law (the Robert T. Stafford Act), federal agencies are generally prohibited from providing financial assistance for losses that have already been covered by another federal benefit. This "anti-duplication" rule is intended to prevent waste and fraud.

However, the intent of H.R. 2364 is to recognize that for many small businesses and individuals, a single stream of funding may be insufficient to achieve full recovery. The bill provides a mechanism to bypass these restrictions when it is deemed in the public interest to do so.

Key Provisions

The bill introduces several critical changes to how disaster assistance is administered:

• Presidential Waiver Authority: The President is granted the power to waive the general prohibition on duplication of benefits. This waiver can be requested by a Governor on behalf of a state, a business, or an individual.
• Criteria for Waiver: In deciding whether to grant a waiver, the President may consider:
  • Recommendations from FEMA and other administering agencies.
  • Whether the assistance is cost-effective.
  • Principles of "equity and good conscience."
  • Other relevant matters of public policy.
• Loan Protection: The bill explicitly states that federal loans should not be automatically counted as a duplication of assistance, provided that all funds are used to address losses from the disaster.
• Removal of Income Caps: To ensure broad accessibility, the bill prohibits the application of income thresholds when determining eligibility for these waivers.
• Expedited Timeline: The President must grant or deny a waiver request within 45 days of submission.

Who is Affected?

• Small Businesses and Individuals: Entities and people suffering losses from major disasters may be eligible for additional federal funding that would otherwise be barred.
• State Governors: Governors gain the ability to advocate for their constituents by formally requesting these waivers.
• FEMA and Federal Agencies: These agencies would be tasked with reviewing waiver requests and coordinating the disbursement of potentially duplicative funds.

Scope and Timeline

The provisions of this Act are not universal for all future disasters. Instead, they specifically apply to major disasters declared by the President that occurred during calendar years 2023 and 2024.

Current Status

As of March 26, 2025, the bill has been introduced in the House of Representatives and referred to the Committee on Transportation and Infrastructure, specifically the Subcommittee on Economic Development, Public Buildings, and Emergency Management.