FEMA Act of 2025
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The bill would pull the Federal Emergency Management Agency out of the Department of Homeland Security and re-establish it as an independent, cabinet-level agency reporting directly to the President, while overhauling how it delivers disaster aid.
It would also rewrite large parts of FEMA's public assistance, individual assistance, and mitigation programs — from faster rebuilding grants and new small-disaster block grants to expanded home-repair aid and a unified disaster application system — aiming to speed recovery and reduce backlogs after major disasters.
What this bill would do
What it would do
The bill would reestablish FEMA as an independent, cabinet-level agency led by a Senate-confirmed Administrator reporting to the President, transferring nearly all of FEMA's current functions out of the Department of Homeland Security (with a few security-related programs excepted). It would create a Working Capital Fund and an inspector general, and require various transition reports. Separately, it would rewrite major parts of the Stafford Act's disaster programs: creating expedited "Section 409" grants to repair or replace damaged public and nonprofit facilities, letting states or tribes take lump-sum block grants for small disasters, expediting debris removal and management-cost funding, expanding individual housing and mitigation assistance, and building a unified disaster application system. It would also overhaul FEMA's mitigation programs by creating preapproved mitigation project plans, allowing full upfront disbursement of hazard mitigation grants, converting pre-disaster mitigation funding to formula-based allocations, and permitting combined use of mitigation funds from multiple programs. The bill does not create new emergency-response authorities beyond amending the Stafford Act and Homeland Security Act, and several provisions are limited to studies, reports, or pilot programs rather than immediate operational changes.
Key provisions
- 1Would reestablish FEMA as an independent, cabinet-level agency led by a Senate-confirmed Administrator reporting directly to the President, transferring nearly all current FEMA functions out of DHS.
- 2Would create new expedited 'Section 409' grants allowing state, local, and private nonprofit facility owners to receive upfront cost-estimate-based funding to repair or replace disaster-damaged facilities.
- 3Would establish optional lump-sum block grants for small disasters, letting states or tribal governments take 80 percent of estimated Public Assistance costs instead of standard reimbursement.
- 4Would expand and speed individual housing assistance, including hazard mitigation aid for damaged residences, direct assistance for repairs, and total-loss replacement funding.
- 5Would require FEMA to build a unified, web-based disaster application system and a universal application for individual disaster assistance across federal agencies.
- 6Would establish preapproved project mitigation plans with peer review, letting states and tribes get mitigation projects pre-approved and fully funded before costs are incurred.
- 7Would convert pre-disaster mitigation assistance from competitive grants to formula-based allocations among states and set a minimum tribal funding floor of $75,000,000.
Who would be affected
FEMA and its employees, the Department of Homeland Security, state, local, tribal, and territorial governments, private nonprofit facility owners, disaster survivors and renters seeking individual assistance, electric utilities, and federal agencies such as HUD, the Small Business Administration, and the Department of Agriculture that coordinate disaster aid.
Why it matters
If enacted, FEMA would operate with more independence and direct presidential accountability rather than under DHS oversight, potentially changing how disaster declarations, funding, and mitigation grants are managed. Disaster survivors, local governments, and nonprofit facility operators could see faster, more flexible aid delivery, while agencies would face new reporting, transparency, and rulemaking obligations tied to the reorganization.
What would change
Changes to existing law
Amends Homeland Security Act of 2002 (Sec. 21)
Removes FEMA-related offices and Secretary references from DHS structure, transferring national emergency management functions to the new independent FEMA Administrator.
Creates Robert T. Stafford Disaster Relief and Emergency Assistance Act (Sec. 101)
Adds new Section 409 authorizing expedited grants to repair, restore, or replace disaster-damaged public and private nonprofit facilities.
Creates Robert T. Stafford Disaster Relief and Emergency Assistance Act (Sec. 106)
Adds new Title VIII establishing block grants that let states/tribes accept lump-sum payments in lieu of standard Public Assistance for small disasters.
Amends Robert T. Stafford Disaster Relief and Emergency Assistance Act (Sec. 104)
Rewrites Section 316 on federal permitting to expand environmental review exemptions for repair and reconstruction projects.
Amends Robert T. Stafford Disaster Relief and Emergency Assistance Act (Sec. 105)
Replaces Section 429 to require a unified interagency environmental and historic review process led by FEMA.
Amends Robert T. Stafford Disaster Relief and Emergency Assistance Act (Sec. 301-304)
Adds preapproved project mitigation plans with peer review to Section 322 and revises hazard mitigation grant funding rules under Sections 203-205.
Amends Disaster Recovery Reform Act of 2018 (Sec. 1223) (Sec. 109)
Replaces the study requirement to streamline and consolidate disaster information collection and preliminary damage assessments.
Agencies directed to act
Effective dates
- Transfer of FEMA functions from DHS to the new independent agency
- Amendments creating expedited repair/restoration grants and related conforming changes
- Establishment of the unified interagency environmental/historic review process
- Public Assistance dashboard requirement for disasters declared after this date
- Residential retrofit and resilience pilot program establishment and termination
Funding and costs
- $75,000,000
minimum annual pre-disaster mitigation funding floor for Indian tribal governments
How implementation would work
FEMA would transition out of DHS over one year, transferring personnel, functions, and appropriations while DHS provides support during the changeover; GAO would review the transition every six months for three years. New Stafford Act programs (Section 409 repair grants, small-disaster block grants, preapproved mitigation plans) would rely on licensed-professional cost estimates, administrator review within set deadlines (often 90 days), and mandatory public dashboards and inspector-general audits. Numerous provisions direct FEMA and GAO to conduct studies, convene advisory panels or working groups, and report findings to congressional committees within specified timeframes, with several requiring subsequent rulemaking to implement recommendations.
Legislative status & sources
Latest action
Ordered to be Reported (Amended) by the Yeas and Nays: 57 - 3.
Official CRS summary
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This bill reestablishes the Federal Emergency Management Agency (FEMA) (currently within the Department of Homeland Security) as an independent, cabinet-level agency. It also makes broad changes to FEMA’s disaster and hazard mitigation assistance programs.
The bill generally transfers FEMA’s current functions and authorities to the independent FEMA, except for certain security-related programs.
The bill makes various changes to the Public Assistance program, including by
- establishing new grants for expedited funding to repair or replace disaster-damaged facilities,
- establishing block grants that recipients may choose instead of Public Assistance for smaller disasters,
- expediting and expanding uses of funding for emergency response and debris removal, and
- allowing use of excess administrative funds for increasing recipients’ disaster management capacity.
The bill makes various changes to the Individual Assistance program, including by
- expanding eligibility for housing assistance,
- expanding mitigation and direct (non-financial) assistance for residences,
- reducing certain restrictions on funds duplicating program benefits, and
- establishing a unified disaster application system.
The bill makes various changes to FEMA’s mitigation programs, including by
- establishing mitigation plans with preapproved projects,
- authorizing an entire Hazard Mitigation Grant Program grant to be provided before costs are incurred,
- changing pre-disaster mitigation assistance to noncompetitive formula grants, and
- allowing recipients to combine mitigation project funds from multiple federal programs.
Additionally, federal entities must publish various information relating to disaster assistance and conduct various studies on related topics (e.g., preliminary damage assessments, fast-moving disasters, and government emergency alerting systems).
Legislative subjects
Administrative law and regulatory procedures; Census and government statistics; Computers and information technology; Congressional oversight; Disaster relief and insurance; Emergency Management; Emergency communications systems; Emergency medical services and trauma care; Emergency planning and evacuation; Executive agency funding and structure; Government information and archives; Government studies and investigations; Homelessness and emergency shelter; Intergovernmental relations; Internet, web applications, social media; Natural disasters; Residential rehabilitation and home repair; State and local finance; State and local government operations