"Disaster Victims Protection Act"; requires Governor to allocate federal and State disaster aid to municipalities in proportion to amount of catastrophic physical damage sustained within each municipality.

This bill requires New Jersey's Governor to allocate federal and state disaster aid to municipalities based on the actual amount of physical damage each suffered, rather than distributing funds by county. It directly affects towns and cities impacted by disasters, ensuring residents and businesses in the hardest-hit areas receive aid proportional to their damage. The key provision mandates that when allocating Community Development Block Grant-Disaster Recovery (CDBG-DR) funds or state relief, the Governor must prioritize municipalities in direct proportion to their documented physical damage. This aims to correct past imbalances where some heavily damaged municipalities received less aid than less-damaged ones within the same designated counties. The law takes effect immediately upon enactment.