On Wednesday, September 3, 2025, the United States House of Representatives’ Transportation and Infrastructure Committee approved the bipartisan FEMA Act of 2025 (H.R. 4669) by a vote of 57-3. The legislation now heads to the full House for a vote.
The FEMA Act was introduced by Transportation and Infrastructure Committee Chairman Sam Graves (R-MO); Transportation and Infrastructure Committee Ranking Member Rick Larsen (D-WA); former Economic Development, Public Buildings, and Emergency Management Subcommittee lead Republican Daniel Webster (R-FL); and Economic Development, Public Buildings, and Emergency Management Subcommittee Ranking Member Greg Stanton (D-AZ).
The following information was developed using information provided by the National Association of Counties (NACo). The Illinois State Association of Counties (ISACo) joins NACo in support of the FEMA Act.
The article concludes with a link to a model letter developed by NACo and shared with ISACo for use by Illinois counties to send to their members of Congress to urge support for the FEMA Act.
What the FEMA Act Does
The FEMA Act would elevate the Federal Emergency Management Agency to cabinet-level status, a change designed to expedite federal disaster response, improve coordination across agencies, and give local governments more direct access to decision-makers. The bill sets stricter qualifications for the FEMA Administrator and Deputy Administrator, requiring extensive executive leadership and emergency management experience.
The legislation reinforces an “all-hazards” approach—ensuring FEMA can assist counties with not only natural disasters but also cyberattacks and public health emergencies. It calls for a one-year transition period as FEMA becomes an independent agency, a move that could cause short-term disruption but is intended to strengthen the agency long term.
Other provisions include the creation of a FEMA Working Capital Fund to support operations and technology, as well as the establishment of a veterans advocate within FEMA to better coordinate recovery services for veterans. For counties, these reforms promise more responsive federal support, though local officials may need to prepare for temporary delays during the transition period.
Public Assistance Reforms in the FEMA Act
The FEMA Act proposes sweeping changes to the Public Assistance Program, shifting it from a reimbursement model to a grant-based system. Under the new approach, counties would receive direct grants for repairing or rebuilding public facilities and undertaking hazard mitigation projects. Cost estimates would be pre-approved within 90 days and funds disbursed within 30 days, giving counties faster and more predictable access to federal disaster dollars. A sliding cost-share scale (65% to 85%) would reward counties that adopt stronger preparedness and mitigation measures.
The legislation also tackles long-standing inefficiencies by creating a task force to close out backlogged disaster claims and directing FEMA to prioritize economically distressed and rural communities in disaster declarations and cost-share arrangements. Counties would benefit from streamlined permitting for projects on previously disturbed land, faster debris removal, and the ability for states to receive lump-sum payments for smaller disasters.
Other notable reforms include reducing administrative burdens by allowing management costs to be spread across multiple disasters, treating counties as states under procurement regulations to speed purchasing, and creating an advisory panel with county representation to modernize how FEMA defines disaster periods. The bill also ensures reimbursement for sheltering essential emergency personnel, strengthens tribal access to fire management grants, and calls for interagency studies to improve the fragmented damage assessment process.
For counties, the package promises faster funding, fewer bureaucratic hurdles, and greater influence in shaping disaster policy, helping local governments recover more quickly and effectively after disasters.
Individual Assistance Reforms in the FEMA Act
The FEMA Act aims to make disaster aid more accessible and efficient for survivors by overhauling the Individual Assistance Program. A central reform is the creation of a universal disaster application system, allowing survivors to submit a single application across multiple federal agencies—including FEMA, HUD, SBA, and USDA—with real-time tracking and streamlined interagency coordination.
Other reforms clarify eligibility rules to reduce denials and delays: disaster loans and charitable donations will no longer count against FEMA benefits, insurance claims must be resolved before assistance is denied, and crisis counseling will explicitly cover substance and alcohol use. FEMA would also gain authority to fund permanent repairs when more cost-effective than temporary housing, expand hazard mitigation assistance, and establish a new program for minor home repairs.
The legislation strengthens protections for vulnerable populations by enabling direct assistance to individuals—particularly those with disabilities or limited resources—when financial aid alone is insufficient. It also provides flexibility for non-traditional housing situations, ensuring renters, mobile home residents, and those experiencing homelessness are not excluded from aid.
Additional measures reauthorize the State-Managed Housing Authority Pilot Program, allow FEMA to replace destroyed homes when cheaper than prolonged temporary housing, and expand county involvement in supporting residents during recovery. Together, these reforms promise faster, fairer, and more comprehensive aid delivery—helping counties support their residents while reducing administrative burdens.
Mitigation Reforms in the FEMA Act
The FEMA Act introduces major reforms to strengthen disaster resilience by reshaping how mitigation projects are planned, funded, and implemented. States would be required to submit preapproved lists of mitigation projects—including at least one per county—within three years of enactment. A 30-member peer review panel would review and approve plans within three months, ensuring counties are proactively included in mitigation strategies and better positioned to secure funding quickly when disasters strike.
The bill also restructures FEMA’s pre-disaster mitigation program, replacing the competitive grant process with a formula-based allocation. Funds would be distributed based on state equality (40%), hazard vulnerability (20%), population and income levels (20%), and the number of rural or distressed communities (20%). At least half of state allocations must be passed through directly to local governments, giving counties more reliable access to funds and reducing the administrative burden of competing for federal dollars.
Additional provisions clarify FEMA’s use of the most up-to-date building codes and launch a Residential Retrofit and Resilience Pilot Program, allowing grants for homeowners to elevate structures, floodproof, add wildfire or wind protections, and construct tornado-safe rooms. The reforms also permit pre- and post-disaster mitigation funds to be combined for large-scale projects, authorize full upfront funding, and allow advance assistance to homeowners—helping counties accelerate resilience work without financial roadblocks.
Finally, the legislation consolidates application processes for hazard mitigation funding into a single form, streamlining county participation and reducing bureaucratic delays. Collectively, these changes would make mitigation efforts more predictable, scalable, and accessible, strengthening local resilience against future disasters.
Transparency Reforms in the FEMA Act
The FEMA Act seeks to improve accountability and public confidence in disaster recovery programs through a series of transparency measures. It requires the federal government to maintain a public database showing all disaster assistance distributed by FEMA, the Small Business Administration, and the Department of Housing and Urban Development.
The legislation also directs the Comptroller General to report to Congress on federal regulations or policies that may be driving up the cost of disaster recovery or slowing the delivery of aid, with recommendations for reform.
To enhance visibility into assistance programs, FEMA would be required to launch two public dashboards. An Individual Assistance dashboard would display real-time data on applicants, approvals, denials, and funding totals following each major disaster. A Public Assistance dashboard would provide detailed project-level information, including the status of FEMA reviews, reasons for denial, and progress updates.
For counties, these reforms promise clearer oversight of federal disaster assistance, enabling local governments and residents to track aid distribution, identify delays, and hold agencies accountable. Greater transparency would help counties coordinate more effectively with state and federal partners while ensuring disaster recovery is fair, timely, and responsive to community needs.
Contact Your House Member and Urge Support!
NACo has prepared a model letter for use in advocating in support of the FEMA Act. The letter is available for download via this link. ISACo asks that county officials consider utilizing the letter to seek support from their members of the United States House of Representatives.