This bill creates an alternative option for states and Indian tribes to receive federal disaster relief payments as a single lump sum rather than going through the traditional reimbursement process. When a "covered small disaster" occurs—defined as a declared disaster with estimated damages of 125 percent or less of the state's per capita income—the governor or tribal government can request 80 percent of estimated Public Assistance Program costs as an upfront payment. Once states or tribes accept this lump sum payment, they give up the right to seek additional federal reimbursement for that disaster but gain flexibility to use the funds for recovery as they see fit, provided the money goes to eligible government and nonprofit entities and complies with environmental and civil rights laws. States and tribes must decide annually whether to participate in this program, reach agreement with the Federal Emergency Management Agency on payment amounts within 90 days, and submit annual expense reports. The bill aims to streamline disaster recovery for smaller incidents while giving state and local leaders more control over how federal assistance is deployed.
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