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Title 42, The Public Health and WelfareRelease 119-110

§5162 Advance of Non-federal Share

Title 42 › CHAPTER 68 — DISASTER RELIEF › SUBCHAPTER III — MAJOR DISASTER AND EMERGENCY ASSISTANCE ADMINISTRATION › § 5162

Last updated Sep 22, 2026|Official source

Summary

The President can lend or advance money to a State or an eligible applicant to cover the State’s share of disaster aid when the State cannot pay. That includes when a place has several major disasters at once, when a single disaster causes huge extra costs, or when the damage is so great the State cannot pay right away. Any loan or advance must be repaid to the United States. It will carry interest set by the Secretary of the Treasury based on current market rates for similar U.S. securities. The President must issue rules that explain the loan terms and conditions.

Full Legal Text

Title 42, §5162

The Public Health and Welfare, Source: USLM XML via OLRC

(a)In general
The President may lend or advance to an eligible applicant or a State the portion of assistance for which the State is responsible under the cost-sharing provisions of this chapter in any case in which—
(1)the State is unable to assume its financial responsibility under such cost-sharing provisions—
(A)with respect to concurrent, multiple major disasters in a jurisdiction, or
(B)after incurring extraordinary costs as a result of a particular disaster; and
(2)the damages caused by such disasters or disaster are so overwhelming and severe that it is not possible for the applicant or the State to assume immediately their financial responsibility under this chapter.
(b)Terms of loans and advances
(1)In general
Any loan or advance under this section shall be repaid to the United States.
(2)Interest
Loans and advances under this section shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current market yields on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the reimbursement period of the loan or advance.
(c)Regulations
The President shall issue regulations describing the terms and conditions under which any loan or advance authorized by this section may be made.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 93–288, May 22, 1974, 88 Stat. 143. For complete classification of this Act to the Code, see

Short Title

note set out under section 5121 of this title and Tables.

Reference

Citations & Metadata

Citation

42 U.S.C. § 5162

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110