Streamlined FEMA Cost Exemption Act
Sponsored By: Representative Rep. Dunn, Neal P. [R-FL-2]
In Committee
Summary
More flexible FEMA recoupment and waiver rules. The Streamlined FEMA Cost Exemption Act would change when and how FEMA can recover certain disaster aid and create new waiver paths to reduce or avoid small overpayment recoveries.
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- Individuals and businesses: Aid recipients would see the window during which FEMA cannot recoup certain assistance shrink from 3 years to 2 years, changing when repayments can be pursued.
- Governors and states: Governors could ask the President to waive the general prohibition on duplicate assistance for a state or for specific people or businesses. The President would have 45 days to grant or deny requests and could not treat a loan as duplicative if federal aid was used toward the loss; waivers would not apply to sections 406 or 408.
- FEMA program and projects: FEMAs Administrator could waive recoupment for covered projects when an overpayment is no more than 5% of total project cost. The Administrator would also set an acceptable error ratio for eligibility negotiations and require amounts within that ratio to be used for eligible purposes.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
FEMA could waive duplicate aid bans
This bill would let the President waive the ban on duplicate federal disaster aid in some cases. A Governor or a person, business, or other entity could ask. The President would need to find it is in the public interest and avoids waste, fraud, or abuse. FEMA’s recommendation, cost‑effectiveness, and equity would be considered. A decision would be due within 45 days. Loans could not be treated as duplicate if all aid goes toward the loss. This would not apply to help under sections 406 or 408. It would apply to disasters declared on or after enactment.
FEMA could forgive small overpayments, set error margin
FEMA would be able to skip recoupment when a covered project was overpaid by no more than 5%. Covered projects get aid under sections 403, 406, 407, 428, or 502. FEMA would also set an acceptable error ratio for allocation talks. Amounts inside that margin would need to be used for eligible costs. These changes would start at enactment.
FEMA recoup time could drop to 2 years
If you get FEMA disaster help, the time before the government could seek repayment would shrink from 3 years to 2. This could mean you might face a recoupment sooner. It would take effect at enactment.
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Sponsors & CoSponsors
Sponsor
Rep. Dunn, Neal P. [R-FL-2]
FL • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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