This bill requires the Federal Emergency Management Agency (FEMA) to establish a pilot program for local governments selected by FEMA to apply directly to FEMA for Hazard Mitigation Grant Program (HMGP) assistance for property acquisition and structure demolition or relocation projects. FEMA must also submit annual reports.

Under current FEMA regulations, local governments are ineligible to apply directly to FEMA for HMGP assistance and must apply indirectly through a state or Indian tribal government. The bill authorizes local governments, if determined eligible and selected by FEMA, to apply directly to FEMA for HMGP assistance for property acquisition. The pilot program must terminate within eight years after FEMA’s initial selection. Local governments may participate for up to 48 months. 

The bill requires FEMA to select up to two local governments from each of FEMA’s 10 regions (only one per state) to participate. For a local government to be eligible, FEMA must determine it is capable of meeting all applicable federal and state requirements for administering hazard mitigation assistance with limited assistance from the state, and FEMA must receive positive feedback from the state regarding its eligibility. In making this determination, FEMA must consult with the state and provide written justification for its decision based on factors including the local government’s history of implementing hazard mitigation projects and level of risk from severe weather.

Additionally, the bill requires FEMA to submit to specified congressional committees an annual report evaluating the pilot program’s effectiveness and future.