Representative Neal Dunn (R-FL) has introduced legislation preventing the Federal Emergency Management Agency (FEMA) from attempting to "claw back" public assistance grants from natural disaster areas.
Specifically, Rep. Dunn's Streamlined FEMA Cost Exemption Act renders project costs to FEMA Public Assistance projects executing a grant with the agency exempt while also prohibiting the recoupment of specific grants by lowering the statute of limitations from three years to two.
Moreover, a waiver for the recoupment of specific funds will be issued, and FEMA will be given discretion to prioritize the pursuit of project overruns exceeding 5 percent of the total project cost.
The bill draws inspiration from a recent example of the negative impact of FEMA's recoupment efforts in Rep. Dunn's congressional district, where several projects in the wake of 2018's Hurricane Michael received Determination Memos (DMs) just before or after the projects were completed, despite the affected areas being approved for grants.
FEMA is trying to "claw back" over $100 million in funds, which could put affected communities into severe debt or even bankruptcy.
"Communities impacted by natural disasters like tropical storms and hurricanes should not be concerned that government bureaucrats will attempt to recoup federal aid for recovery efforts years after the money has been spent rebuilding the community," the Florida Congressman said in his press release, adding, "Florida cities and counties are responsible stewards of federal funding when disaster strikes, and we cannot allow bureaucratic uncertainty to impact the recovery process. I'm proud to introduce legislation that will relieve this financial burden on our communities to allow them to focus on rebuilding."
In March, Dunn introduced a similar bill that requires the federal government to pay interest accrued on loans taken by local governments to cover disaster relief costs. Such legislation arose from local governments and electric cooperatives taking loans from sources other than the federal government due to FEMA's slowness.
