H.R. 7671 would allow state and local governments that receive disaster assistance from the Federal Emergency Management Agency to repurpose unused funds that originally were allocated for management costs. State and local governments could use the funds to increase their administrative capacity to prepare for, recover from, or mitigate the effects of disasters. Under current law, unused funds are returned to the Disaster Relief Fund. Under the bill, those governments could retain unused funds for up to five years for disasters that are declared on or after the bill’s enactment date. CBO estimates that enacting H.R. 7671 would not affect direct spending or revenues. CBO has not estimated the bill’s effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
