House draft bill text proposes FEMA reform package with major wins for counties

Key Takeaways

This week, the U.S. House Transportation and Infrastructure (T&I) Committee’s Economic Development, Public Buildings and Emergency Management Subcommittee released draft bill text for a sweeping Federal Emergency Management Agency (FEMA) reform package aimed at improving disaster response, streamlining aid and increasing local flexibility—reflecting many long-standing county priorities.

Read the Bill Text

Key highlights from the draft bill text

• FEMA structure: The bill would remove FEMA from the U.S. Department of Homeland Security (DHS) and reestablish it as an independent, Cabinet-level agency.
• Public Assistance (PA) reforms: The bill transitions FEMA from a reimbursement model to a grant-based structure. Under the new framework, FEMA would be required to disburse funds within 120 days of a disaster declaration. It also introduces a sliding federal cost-share ranging from 65 to 85 percent, tied to the implementation of local mitigation measures. To further speed up recovery, the bill streamlines environmental and historic preservation (EHP) reviews. Additionally, it incorporates the NACo-endorsed Disaster Management Cost Modernization Act (H.R. 744/S. 773) which would allow management costs to be spread across multiple disasters, offering counties more flexibility in administrative planning.
• Individual Assistance (IA) reforms: The bill includes several key changes to streamline and improve aid for survivors. It creates a universal disaster application which would simplify and speed up the process of accessing assistance. It also expands FEMA’s authority to repair homes beyond basic habitability, addressing a current limitation that often leaves survivors in unsafe conditions. Finally, it clarifies that charitable donations will not be treated as a duplication of benefits, ensuring that individuals who receive private aid are not disqualified from receiving federal assistance.
• Mitigation and transparency: The bill allows states to develop a list of pre-approved mitigation projects, enabling faster implementation once funding becomes available. To ensure broad access, states would be required to identify at least one project in each county. It also broadens the definition of what qualifies as meeting building code requirements under FEMA programs, offering greater flexibility for local governments. Finally, the legislation calls for a series of Government Accountability Office (GAO) reports on improving FEMA transparency—potentially opening the door for proposals like a “FEMA Dashboard,” which counties have already recommended.

Next steps

While this legislation’s creation marks a major win for counties in the disaster space, it is only the beginning of the legislative process. The proposal will need to be introduced before advancing through the full House T&I Committee and ultimately gaining bipartisan support in both chambers.

NACo will provide a more extensive review of the full proposal in the coming days to help counties understand the potential impacts and opportunities for engagement.

County impact

This draft bill responds directly to county feedback, including major reforms that would speed up recovery timelines, ease administrative burdens and improve support for survivors. Counties will be especially encouraged by the PA reforms, universal disaster application and mitigation flexibility—all of which are essential to building stronger, more resilient communities. Many of these proposals were recommended by the NACo Intergovernmental Disaster Reform Task Force, which continues to work toward meaningful FEMA reform to improve disaster mitigation, response and recovery efforts across the country.