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.
Show full summary
- 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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