Referred to the Committee on Financial Services, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
# Summary of H.R. 5940 — Reforming Disaster Recovery Act
This bill establishes a new Long-Term Disaster Recovery Fund and creates a community development block grant disaster recovery program to help states, local governments, and tribes rebuild after major disasters. The fund will provide grants to the most impacted and distressed areas following catastrophic disasters, with a focus on housing, infrastructure repair, economic revitalization, and flood mitigation for low- and moderate-income households. At least 70 percent of each grant must benefit low- and moderate-income persons unless the Housing and Urban Development Secretary finds compelling reasons to waive this requirement.
The bill establishes a new Office of Disaster Management and Resiliency within HUD to coordinate disaster preparedness and response across federal agencies. It requires the Secretary to develop a formula for allocating recovery funds based on damage concentration and unmet needs, and to make initial funding determinations within 90 to 120 days of a disaster declaration. The legislation allows preliminary grants of up to $5 million to speed early recovery planning before full assessments are complete. Grantees must submit detailed plans within 90 days describing how they will use funds and must prioritize activities that help vulnerable populations recover and build resilience against future disasters.
The bill does not specify a total funding amount but authorizes "such sums as may be necessary" to be appropriated to the Fund. It requires the Secretary to issue proposed regulations within 6 months and final rules within 1 year of enactment. The legislation also establishes data-sharing agreements between HUD, FEMA, and the Small Business Administration to prevent duplicate assistance and improve coordination of federal disaster aid.
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