HR2836119th CongressWALLET

FEMA Loan Interest Payment Relief Act

Sponsored By: Representative Dunn, Neal P. [R-FL-2]

In Committee

Summary

Offsets interest costs on disaster recovery loans. This bill would let FEMA, acting through the President, reimburse qualifying interest on loans taken by local governments and electric cooperatives when at least 90% of the loan proceeds fund Stafford Act assistance projects.

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  • Local governments, including the District of Columbia, could receive reimbursements for interest on loans used mainly for Stafford Act recovery projects. Eligible interest is the lesser of the actual interest paid or interest calculated using the most recently published Federal Reserve prime rate.
  • Electric cooperatives could get the same interest reimbursements for loans that fund Stafford Act–eligible activities.
  • The bill would allow a nine‑year lookback for qualifying interest and would require FEMA to publish alternative procedures within 30 days so States can apply within 60 days and receive reimbursements for pending projects within one year.
  • Reimbursements could only be paid from amounts appropriated on or after enactment.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

FEMA interest relief for governments and co-ops

If enacted, FEMA would reimburse some interest on loans that local governments and electric cooperatives used for disaster work. At least 90% of each loan’s funds would need to pay for activities that later get Stafford Act aid, after the loan is disbursed. Reimbursement would cover the lesser of the actual interest paid or interest at the most recently published prime rate. Interest paid in the 9 years before enactment would also count. Local government would include the District of Columbia.

Faster state payouts using new funds

If enacted, FEMA would publish alternative procedures within 30 days to speed up interest reimbursements on projects still pending. States would need to apply within 60 days after those procedures are published. FEMA would finish these reimbursements within one year after enactment. But only money appropriated on or after enactment could be used, which could limit or delay payments.

Sponsors & CoSponsors

Sponsor

Dunn, Neal P. [R-FL-2]

FL • R

Cosponsors

  • Soto

    FL • D

    Sponsored 4/10/2025

  • Lee (FL)

    FL • R

    Sponsored 4/10/2025

  • Rep. Carter, Troy A. [D-LA-2]

    LA • D

    Sponsored 4/10/2025

  • Rep. Higgins, Clay [R-LA-3]

    LA • R

    Sponsored 4/10/2025

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 4/10/2025

  • Webster (FL)

    FL • R

    Sponsored 4/10/2025

  • Rep. Gimenez, Carlos A. [R-FL-28]

    FL • R

    Sponsored 4/10/2025

  • Bilirakis

    FL • R

    Sponsored 4/10/2025

  • Rep. Moskowitz, Jared [D-FL-23]

    FL • D

    Sponsored 4/10/2025

  • Rep. Donalds, Byron [R-FL-19]

    FL • R

    Sponsored 4/10/2025

  • Mills

    FL • R

    Sponsored 4/10/2025

  • Franklin, Scott

    FL • R

    Sponsored 4/29/2025

  • Bean (FL)

    FL • R

    Sponsored 4/29/2025

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 4/30/2025

  • Rep. Cammack, Kat [R-FL-3]

    FL • R

    Sponsored 6/3/2025

  • Rutherford

    FL • R

    Sponsored 7/16/2025

  • Rep. Scholten, Hillary J. [D-MI-3]

    MI • D

    Sponsored 8/19/2025

  • Haridopolos

    FL • R

    Sponsored 10/17/2025

Roll Call Votes

No roll call votes available for this bill.

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