Representative Neal Dunn (R-FL) has introduced the FEMA Loan Interest Payment Relief Act, a bill that would "provide financial assistance to local governments and electric cooperatives by reimbursing interest payments on loans used for disaster recovery activities."
The legislation would make the federal government financially responsible for the interest accumulated on disaster recovery loans. Rep. Dunn's rationale for this bill is that when the Federal Emergency Management Agency (FEMA) moves slowly on providing disaster relief, local governments and electric cooperatives are left to foot the bill as interest payments continue. Dunn's legislation also retroactively applies nine years in the past.
Rep. Dunn described this measure as a step toward local communities making full recoveries, relating to both previous and potential natural disasters.
“Communities impacted by natural disasters are often left with staggering financial burdens while waiting for federal reimbursements on their disaster loans,” said Rep. Dunn. “Municipal governments and electric coops should not have to face undue financial burdens for the sluggish response from FEMA. This bill ensures that our communities are reimbursed for the interest on loans they need to make a full recovery."
Dunn concluded, "By lifting this financial strain, we are empowering communities to focus on what truly matters after disaster strikes – rebuilding and recovery.”
FEMA has been on high alert for Congressional Republicans since the Department of Government Efficiency (DOGE) and other investigators found staggering usage of taxpayer dollars within the agency.
In response, Representative Greg Steube (R-FL) reintroduced the FEMA for America First Act in March to ensure FEMA relief funds are provided solely to American citizens and lawful permanent residents.
Specifically, Rep. Steube's bill requires noncitizens, meaning lawful permanent residents, to present a green card and valid taxpayer requirements to receive FEMA aid. Asylees and refugees must similarly prove they are actively working toward receiving lawful permanent residence.
