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Congress Proposes Major FEMA Reform Package with Local Impacts

On July 24, House Transportation and Infrastructure Committee leaders introduced the bipartisan Fixing Emergency Management for Americans (FEMA) Act (H.R. 4669), aimed at modernizing and streamlining federal disaster response programs. A key feature of the proposal is the elevation of FEMA to a cabinet-level agency, independent from the Department of Homeland Security. This structural change underscores the growing recognition of FEMA’s critical role in national emergency management and response.

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Improved Funding, Flexibility, and Speed for Local Governments
The legislation proposes significant reforms to FEMA’s Public Assistance (PA), Individual Assistance (IA), and mitigation programs. For special districts and local governments, this includes shifting PA from a reimbursement model to direct grants with a 120-day funding timeline, introducing a sliding cost-share to reward mitigation efforts, and streamlining environmental reviews. For disaster survivors, the bill would simplify applications, expand housing repair authority, and clarify eligibility rules—helping ensure faster and fairer support after disasters. Importantly, the bill adopts the Disaster Management Cost Modernization Act, allowing local entities more flexibility in managing administrative costs across multiple disasters.

Transparency, Pre-Approved Projects, and What Comes Next
To reduce red tape and enhance transparency, the bill mandates a new public-facing dashboard to track disaster declarations, project costs, and funding status. It would also allow states to pre-approve mitigation projects, restructure pre-disaster funding into formula-based grants, and consolidate application processes—all changes aimed at speeding implementation and reducing administrative burden for local agencies and special districts. The bill is expected to be considered by the House T&I Committee after Congress returns from its August recess in early September.

 

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