Streamlined FEMA Cost Exemption Act

HR 3759, the Streamlined FEMA Cost Exemption Act, shortens the timeframe for FEMA to reclaim certain disaster assistance funds from 3 to 2 years. It expands the President’s authority to waive recoupment requirements for states, businesses, or individuals affected by disasters, provided the waiver is in the public interest and avoids waste. The bill also allows for a 5% cost overrun on covered disaster recovery projects (like those under FEMA sections 403, 406, or 407) without triggering repayment, and establishes a standardized error ratio to prevent unnecessary fund reclaiming during eligibility reviews. These changes aim to reduce administrative hurdles for disaster-affected communities and streamline FEMA’s financial assistance process.