§5162 Advance of non-Federal share

Summary

The President can lend or advance federal money to a state or eligible applicant to cover the state’s share of disaster costs when two things are true. First, the state can’t pay its share because it faces multiple major disasters at once in the same area or it has unusually large costs from a single disaster. Second, the damage is so severe that the state or applicant cannot immediately pay. Any loan or advance must be repaid to the United States. The Treasury Secretary sets the interest rate and must consider current market yields on U.S. marketable securities with similar remaining maturity. The President must create rules that explain the loan terms and conditions.