This bill amends federal disaster relief law to give states, tribes, and territories a financial incentive to close out disaster recovery projects more quickly. Under current law, grant recipients receive set-aside funding for "management costs" tied to administering disaster recovery projects, but any unspent portion of that money is typically lost once a project ends. This bill allows leftover, or "excess," management cost funds to be redirected toward preparing for, recovering from, or mitigating future disasters and emergencies, rather than reverting unused. States and localities receiving federal disaster assistance under the Stafford Act would benefit, since they could keep and reuse these savings for up to five years after the funds are made available, encouraging faster project closeouts. The bill applies to disaster declarations that are open or made after enactment and funded with future appropriations, and it does not authorize any new federal spending. It also requires the Government Accountability Office to study actual management costs and disaster closure timelines within 180 days of enactment to assess whether current funding levels are appropriate.
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