"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.

The "Disaster Victims Protection Act" (Bill A 3720) requires New Jersey's Governor to allocate federal and state disaster relief funds to municipalities based on the actual physical damage each municipality sustained, rather than distributing funds primarily by county. This applies to programs like federal Community Development Block Grant-Disaster Recovery (CDBG-DR) funds and state disaster aid, ensuring aid aligns with localized damage levels. It directly affects municipalities, residents, and businesses in disaster-impacted areas, particularly those that suffered severe damage but received less funding under previous county-based allocations. The bill mandates that when allocating funds, the Governor must prioritize distribution "in proportion to the relative amount of physical damage sustained within each municipality," as far as federal rules permit. This aims to address inequities where some heavily damaged municipalities received less aid than less-damaged ones within the same designated counties.