Disaster Management Costs Modernization Act

HR 7671, the Disaster Management Costs Modernization Act, allows local governments and organizations receiving federal disaster funds to redirect unused management costs toward disaster preparedness and mitigation. It defines "excess funds" as the difference between authorized management costs and actual spending, making these funds available for activities like building disaster recovery capacity or managing ongoing disaster operations. These redirected funds must be used within five years of availability and cannot create new spending, as the bill specifies "no additional funds" are authorized. The act also requires a GAO study to assess historical management costs for future funding decisions.