Disaster Response Flexibility Act of 2025

This bill creates a new option for states affected by major disasters: instead of receiving traditional federal disaster aid, states can choose to receive a lump-sum block grant. The grant amount is calculated by assessing the state's total eligible recovery costs (after subtracting the state's required non-Federal share) and validated through consultation with the state. States using this grant must submit detailed reports on fund usage, impacts, and effectiveness, and can use leftover funds for future disaster preparedness. It directly affects states managing disaster recovery under the Stafford Act, offering flexibility in how they allocate federal funds for rebuilding.