r/EmergencyManagement • u/Infinite_Flounder958 • 10d ago
S 773 - Disaster Management Costs Modernization Act
https://www.opencongress.net/bill-details/402526
u/CommanderAze Federal 10d ago
Some quick analysis...
I'm not sure the writers of the bill understand how the PA process works.
For those needing a summary...
Summary of S. 773: Disaster Management Costs Modernization Act
This bipartisan bill, introduced by Senators Hassan and Lankford, amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to create a financial incentive for States, Indian Tribes, and Territories to manage and close out disaster recovery projects more efficiently.
Key Provisions:
Creation of "Excess Funds for Management Costs": The bill allows grantees (States, Tribes, Territories) that manage disaster relief funds to keep any unspent money that was originally allocated for the administration and management of a specific disaster project. This leftover amount is defined as "excess funds for management costs"—the difference between the management funds authorized and the amount actually spent when the grant is closed.
Use of Excess Funds: Instead of returning the unspent management funds to the federal government, grantees can use them for other disaster-related purposes, including: Building capacity to prepare for, recover from, or mitigate future disasters.
Covering management costs for any other active major disaster, emergency, disaster preparedness measure, or mitigation activity.
Availability of Funds: These repurposed excess funds will remain available for the grantee to use for a period of 5 years.
GAO Study: The bill mandates the Government Accountability Office (GAO) to conduct a study within 180 days of enactment. The study will review the actual management costs associated with major disasters over the past five years to determine if the current funding levels are appropriate.
Applicability and Funding: The new rules will only apply to disasters declared and funded after the bill becomes law. The bill explicitly states that no additional funds are authorized to be appropriated to carry out these changes.
Overall Goal:
The primary objective of the bill is to encourage grantees to complete disaster recovery projects efficiently and under budget. By allowing them to retain and reinvest the savings into their own disaster management capabilities, the legislation aims to speed up project closeouts and enhance overall preparedness and resilience for future events.
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u/ShdwWzrdMnyGngg 9d ago
Oh wow that's actually a good idea. Sometimes I forget Congress makes smart decisions when it functions like it should. Which is rare.
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u/CommanderAze Federal 9d ago
The issue is the PA process there isn't excess in the system if it costs less than the estimates then the money just isnt spent. I think under this proposed framework theres an incentive to overestimate cost of work to have moreomey for other things.
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u/ShdwWzrdMnyGngg 9d ago
There is already plenty of incentive to get the biggest possible check. Adding more isn't going to change that. That's why PDMGs are so incredibly important. They are the only thing keeping the PA program from using the whole disaster fund 3 days after it's filled.
I have seen projects that didn't have a PDMG. 100k turns into 2 million out of thin air. Every single time.
So as long as we have them, it's all good. Blank checks ain't scary.
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u/CommanderAze Federal 9d ago
I'm also concerned as there's an effort for states to take on more and more on this role (including discussions about states doing PDGM work) which the obvious conclusion here leads to issues.
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u/PuddlePirate1964 10d ago
This guy is spamming across all the gov sub reddits.