FEMA Loan Interest Payment Relief Act

This bill, the FEMA Loan Interest Payment Relief Act, provides financial reimbursement to local governments and electric cooperatives for interest paid on qualifying disaster recovery loans. A qualifying loan must be used for activities funded under the Stafford Act, with at least 90% of the loan proceeds going toward disaster-related projects. The reimbursement covers the lesser of the actual interest paid or the interest calculated at the prime rate (as published by the Federal Reserve), and includes interest from the five years prior to the bill's enactment. This relief directly reduces financial burdens on affected entities after disasters without altering existing disaster assistance programs.