States, Tribes, and territories could reuse leftover disaster grant money after a grant closes. They could spend it on disaster management, readiness, or work that lowers future disaster risk. The bill adds no new federal money.
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Disaster Management Costs Modernization Act is a Senate bill in committee. The latest recorded action: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Latest action on S. 773: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Who this affects: This bill mainly affects states, Tribes, territories, and other grant recipients that manage federal disaster aid. It could give them more flexibility after a disaster grant closes. It also affects the Federal Emergency Management Agency, which runs most Stafford Act disaster programs for the President. Congress and disaster officials would get new data from the Government Accountability Office study.
Why this matters: Disaster grants can leave management money unused after a project closes, even when governments still face disaster work. This bill could let that money support future readiness, recovery, and risk-reduction work instead of sitting unused. It could also encourage faster grant closeout because closing a grant may free up leftover management funds. The later watchdog report could shape future decisions about how much money should be set aside for managing disaster grants.
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