Disaster Management Costs Modernization Act

The Disaster Management Costs Modernization Act (S 773) allows state and local governments receiving federal disaster relief funds to redirect unused money originally set aside for management costs toward disaster preparedness, recovery, or mitigation activities. Specifically, it defines "excess funds" as the difference between the authorized management cost amount and actual spending, making these funds available for up to five years after reallocation. The bill also requires a Government Accountability Office study to review past management costs during major disasters and assess if current funding levels are appropriate, without authorizing new funds. This change applies to grants for disasters declared after the bill's enactment.