To amend section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act to establish within the Building Resilient Infrastructure and Communities program a dedicated rural flood resilience supplemental allocation providing formula-based pass-through grants to rural communities through a set-aside from the Federal Emergency Management Agency Disaster Relief Fund, and for other purposes.

To amend section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act to establish within the Building Resilient Infrastructure and Communities program a dedicated rural flood resilience supplemental allocation providing formula-based pass-through grants to rural communities through a set-aside from the Federal Emergency Management Agency Disaster Relief Fund, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

SEC. 2. Findings.

(1) Rural communities, Tribal lands, and territories face heightened vulnerabilities to flooding due to limited local tax bases, aging infrastructure, isolation, and unique geographic conditions.

(2) Hazard risk and impacts in rural communities, Tribal lands, and territories are made worse by lower levels of capacity to apply for and administer hazard mitigation and preparedness grants, and is further exacerbated when States also have lower levels of capacity to assist such areas.

(3) The Federal Emergency Management Agency’s Disaster Relief Fund primarily focuses on post-disaster recovery, leaving a gap in dedicated predisaster investments tailored to rural and remote areas.

(4) Targeted support for rural, Tribal, and territorial flood mitigation and preparedness measurably reduces long-term Federal disaster expenditures.

SEC. 3. Mandatory program.

(1) by striking “may establish” and inserting “shall carry out”;

(2) by striking “and local governments” and inserting “and Indian tribal governments”; and

(3) by striking “or local governments” and inserting “or Indian tribal governments”.

SEC. 4. Allocation of funds; State administrative plan.

“(c) Allocation of funds.—

“(1) IN GENERAL.—The President shall provide technical and financial assistance under this section to eligible entities through the allocation in paragraph (2).

“(2) FORMULA.—In providing financial assistance under this section, the President shall distribute available funds for each fiscal year among eligible entities by formula as follows:

“(A) 50 percent of funds available under this section in a fiscal year shall be divided equally among all eligible entities.

“(B) 30 percent of funds available under this section in a fiscal year shall be divided among all eligible entities, with additional preference given to eligible entities with higher populations and lower median incomes, using data from the most recent decennial census.

“(C) The remaining funds available under this section in a fiscal year shall be divided among all eligible entities that have demonstrated capacity to effectively manage Federal grant funds and advance hazard mitigation priorities, as evidenced by—

“(i) adoption of a Federal Emergency Management Agency-approved advanced hazard mitigation plan using data provided by States and from the Federal Emergency Management Agency and the International Code Council; or

“(ii) adoption of the 2 most recently published editions of the International Building Code, including all flood-related provisions, using data provided by States and from the Federal Emergency Management Agency and the International Code Council.

“(d) Eligibility.—

“(1) ELIGIBLE ENTITIES.—Entities eligible for a grant under this section are the following:

“(A) States.

“(B) Indian tribal governments.

“(2) ADMINISTRATIVE PLAN REQUIREMENT.—A State or Indian tribal government is eligible for funds pursuant to subsection (c) if—

“(A) the State or Indian tribal government submits to the President a plan under paragraph (3); and

“(B) such plan is approved by the President.

“(3) PREDISASTER HAZARD MITIGATION ADMINISTRATIVE PLAN.—To be eligible for funds in a fiscal year under this section, not later than October 1 of the preceding fiscal year, a State or Indian tribal government shall submit to the President a predisaster hazard mitigation administrative plan that describes—

“(A) the objectives of the State or Indian tribal government and plan for distributing funds as subgrants to eligible entities;

“(B) the process of the State or Indian tribal government for facilitating a streamlined subgrant application, including how the State or Indian tribal government will—

“(i) ensure that the standard subgrant application does not exceed 10 pages for project subgrants and 5 pages for planning subgrants, exclusive of required attachments;

“(ii) provide plain-language application instructions and, where practicable, fillable electronic forms accessible without specialized software;

“(iii) accept preapplication consultations in lieu of formal letters of intent;

“(iv) permit joint applications from 2 or more eligible entities for regional or watershed-scale projects;

“(v) include a model application and annotated example for eligible entities with limited grant management experience; and

“(vi) publish application scoring results and provide written summaries to applicants upon request; and

“(C) the commitment of the State or Indian tribal government to—

“(i) solicit, evaluate, and score applications, taking into account the criteria set forth under this section;

“(ii) obligate funds within 12 months of receipt;

“(iii) review applications and determine subgrantees within 6 months of receipt, except for small project subgrants under subsection (m), and release funds to subgrantees within 60 days of approval;

“(iv) issue subgrant agreements;

“(v) oversee program and fiscal performance of subgrantees; and

“(vi) prevent duplication of Federal benefits.

“(4) PLAN APPROVAL.—The President shall—

“(A) approve or disapprove each administrative plan submitted under paragraph (1) not later than February 1 of the fiscal year for which the plan is submitted; and

“(B) provide the funds allocated pursuant to subsection (c) to each eligible State or Indian tribal government on the first day of the fiscal year following the fiscal year in which the plan is submitted.”.

SEC. 5. Nature-based solutions as eligible uses of assistance.

(1) by amending paragraph (1)(A) to read as follows:

“(A) shall be used by States and Indian tribal governments principally to implement predisaster hazard mitigation measures that are cost-effective and may include nature-based and green infrastructure solutions such as—

“(i) floodplain and wetland restoration, reconnection, or enhancement;

“(ii) living shorelines, bioengineered streambank stabilization, and riparian buffer establishment;

“(iii) retention and detention facilities using natural or hybrid design approaches, including constructed wetlands and bioretention systems;

“(iv) upland reforestation and watershed restoration to reduce runoff; and

“(v) any combination of structural and nature-based approaches that achieves measurable flood risk reduction; and”; and

(2) in paragraph (2) by striking “or local government” and inserting “or Indian tribal government” each place it appears.

SEC. 6. Criteria for mitigation activities.

“(f) Criteria for mitigation activities.—In determining whether to carry out a project with funds provided under this section, the recipient of funds shall take into account—

“(1) project need and risk reduction potential;

“(2) short- and long-term community benefits and sustainability;

“(3) cost-effectiveness and budget clarity;

“(4) collaboration with State, Tribal, regional, or watershed authorities;

“(5) environmental and landscape impacts, including the use of nature based or green infrastructure approaches where feasible;

“(6) long-term operational feasibility;

“(7) applicant capacity and the degree to which the project design reflects local knowledge and community-identified priorities, with allowance for limited technical sophistication in application materials from first-time applicants, low-capacity applicants, and small and rural applicants; and

“(8) whether a project is located in—

“(A) an area with high or very high hazard potential, elevated risk, or meeting vulnerability criteria;

“(B) a low-income community; or

“(C) a community affected by a major disaster within the preceding 10 years.”.

SEC. 7. SAFE rural program.

“(g) SAFE rural program.—

“(1) SAFE RURAL FUND.—

“(A) ESTABLISHMENT.—The President shall establish a fund to be known as the SAFE Rural Fund (in this subsection referred to as the ‘Fund’).

“(B) FUNDING.—In addition to any amounts appropriated to the Fund, the President shall deposit into the fund 2 percent of all amounts appropriated to the Disaster Relief Fund during each fiscal year in order to carry out the SAFE rural program established under paragraph (2).

“(C) SEPARATE ACCOUNTING.—Amounts deposited in the Fund shall be separately accounted for and may not be commingled with other funds made available for the program under this section or used for purposes other than the purposes authorized under this subsection.

“(D) AVAILABILITY.—Funds made available under this paragraph shall remain available until expended.

“(2) SAFE RURAL PROGRAM.—The President shall establish a Sustainable and Flood Resilient Engineering for Rural Areas program (in this section referred to as the ‘SAFE rural program’) to provide for a dedicated rural flood resilience supplemental allocation that provides formula-based pass-through grants to States and Indian Tribal governments for projects in rural communities.

“(3) FORMULA CALCULATION.—

“(A) IN GENERAL.—The President shall develop an allocation formula for funds provided to the Fund that—

“(i) is based on a comprehensive dataset and is not based on large datasets with known and significant gaps in local data, including the National Risk Index;

“(ii) provides each State and Indian Tribal government eligible under this section with not less than the lesser of $5,000,000 or an amount equal to 1 percent of the amounts available under this subsection for each fiscal year; and

“(iii) takes into consideration the size, amount, and degree of need of priority areas described in paragraph (6)(A) within the State or Indian Tribal government area, as determined by the Administrator.

“(B) MAXIMUM ALLOCATION.—Notwithstanding subparagraph (A)(ii), no State or Indian Tribal government may receive under this paragraph for a fiscal year more than the lesser of—

“(i) 15 percent of the total amount available under this subsection for the fiscal year; or

“(ii) $150,000,000.

“(4) PASS-THROUGH REQUIREMENTS.—

“(A) MANDATORY PASS-THROUGH.—

“(i) MINIMUM PASS-THROUGH.—Each recipient of allocated funds under this subsection shall distribute all allocated funds as subgrants to eligible entities, except as provided in clauses (ii) and (iii).

“(ii) ADMINISTRATIVE RETENTION.—Not more than 5 percent of allocated funds may be retained by recipient for grantee administration, outreach, technical assistance, and monitoring.

“(iii) COMMUNITY ASSISTANCE PROGRAM SET-ASIDE.—Amounts described in paragraph (8) shall be set aside from the amounts deposited into the Fund to carry out such paragraph.

“(B) TIMELY OBLIGATION.—Subgrants shall be obligated by a recipient within 12 months of the receipt of funds.

“(C) GRANTEE RESPONSIBILITIES.—Each State or Indian Tribal government receiving funds under this subsection shall—

“(i) issue subgrant agreements;

“(ii) oversee program and fiscal performance of subgrantees; and

“(iii) prevent duplication of Federal benefits.

“(D) TRIBAL ELIGIBILITY THROUGH STATE PASS-THROUGH.—Indian Tribal Governments within the geographic boundary of a State may elect to apply for subgrants from such State.

“(5) ELIGIBLE USES OF FUNDS.—

“(A) IN GENERAL.—Subgrants provided under this subsection may be used for—

“(i) construction or restoration of flood-resilient public infrastructure, including bridges, culverts, drainage systems, levees, stormwater controls, and coastal defenses;

“(ii) mitigation projects that reduce flood risk to critical facilities, transportation networks, utilities, agricultural-based businesses and farmsteads, and homes;

“(iii) nature-based and green infrastructure solutions, including—

“(I) floodplain and wetland restoration, reconnection, or enhancement;

“(II) living shorelines, bioengineered streambank stabilization, and riparian buffer establishment;

“(III) retention and detention facilities using natural or hybrid design approaches, including constructed wetlands and bioretention systems;

“(IV) upland reforestation and watershed restoration to reduce runoff; and

“(V) any combination of structural and nature-based approaches that achieves measurable flood risk reduction;

“(iv) subgrantee management costs, not to exceed 5 percent of the subgrant award; and

“(v) projects that address natural hazards identified as a significant risk in the State’s hazard mitigation plan submitted under section 322.

“(B) OPERATIONS AND MAINTENANCE PLANNING REQUIREMENT.—

“(i) REQUIREMENT.—As a condition of receiving a subgrant under clause (i) or (ii) of subparagraph (A), an eligible entity shall submit an operations and maintenance plan demonstrating—

“(I) the responsible party or parties for long-term maintenance of the funded project;

“(II) estimated annual maintenance costs and the funding source or mechanism for meeting those costs;

“(III) a maintenance schedule and inspection protocol; and

“(IV) a contingency plan for emergency repair.

“(ii) TEMPLATE.—The Administrator shall develop a standardized, one-page operations and maintenance plan template for use by eligible entities with limited administrative capacity.

“(iii) CAP–MIT ASSISTANCE.—CAP–MIT grants under paragraph (8) may be used to assist eligible entities in preparing operations and maintenance plans required under this paragraph.

“(iv) WAIVER.—The Administrator may waive the requirement of clause (i) for preparedness projects under subparagraph (A)(iii).

“(C) ADDITIONAL USES.—A territorial government may use funds awarded under this subsection for projects addressing island-specific hydrology, coastal erosion, storm surge, or infrastructure vulnerabilities.

“(6) SUBGRANT PRIORITIES AND COST SHARING.—

“(A) FLOOD RESILIENCE AND HAZARD MITIGATION PLANS.—

“(i) IN GENERAL.—Subgrants under this subsection may support—

“(I) development or updating of community flood resilience plans; and

“(II) implementation of projects included in such plans.

“(ii) PLANNING INCLUSIONS.—Planning in Tribal and territorial communities may incorporate indigenous knowledge, cultural site preservation, or island-specific risk assessments.

“(B) COST SHARING.—

“(i) IN GENERAL.—Except as provided in clause (ii)—

“(I) planning subgrants shall require a non-Federal share of not less than 10 percent; and

“(II) project subgrants shall require a non-Federal share of not less than 25 percent.

“(ii) WAIVER AUTHORITY.—The Administrator may reduce or waive the cost-sharing requirement under clause (i) for underserved or economically distressed rural, Tribal, or territorial communities.

“(7) COMMUNITY ASSISTANCE PROGRAM.—

“(A) IN GENERAL.—The Administrator shall provide to each State and Indian Tribal government eligible under this paragraph a grant of an amount not less than $1,000,000 and not more than $5,000,000 annually.

“(B) ELIGIBILITY CRITERIA.—To be eligible to receive a CAP–MIT grant, a State or Indian Tribal government shall develop and maintain a capable State hazard mitigation program responsible for—

“(i) administering pre- and post-disaster hazard mitigation programs of the Federal Emergency Management Agency;

“(ii) assisting communities with the preparation and submission of hazard mitigation grant program applications, including applications for flood mitigation assistance, other hazard mitigation programs, and community development block grant program, and programs administered by the Natural Resources Conservation Service, National Oceanic and Atmospheric Administration, Department of Interior, and the United States Army Corps of Engineers;

“(iii) developing and implementing assistance approaches to ensure a focus on rural and small communities that might otherwise be precluded from participating in Federal hazard mitigation grant programs;

“(iv) offering technical assistance to communities for developing and updating hazard mitigation plans;

“(v) developing pre- and post-disaster hazard mitigation strategies and resilience activities of the State or Indian Tribal government; and

“(vi) such additional components as the President may determine.

“(C) ANNUAL DISTRIBUTION.—The President shall award CAP–MIT grants to States and Indian Tribal governments on a consistent, annual basis, notwithstanding any other application for or receipt of pre- or post-disaster mitigation assistance, to ensure continuity of State and territorial hazard mitigation capacity.

“(8) COMPLIANCE AND OVERSIGHT.—

“(A) SUBGRANTEE RESPONSIBILITIES.—An eligible entity receiving funds under this subsection shall—

“(i) use funds solely for approved purposes;

“(ii) submit quarterly performance and financial reports to the applicable State, Indian Tribal Government, or the Administrator, as appropriate;

“(iii) maintain accurate and complete records; and

“(iv) permit inspection by the State, Indian Tribal Government, or the Administrator.

“(B) FEDERAL OVERSIGHT.—The Administrator may audit any recipient or subgrantee receiving funds under this subsection as necessary to ensure compliance.

“(C) REPAYMENT.—The Administrator may require repayment of funds that—

“(i) are used for unauthorized purposes;

“(ii) remain unexpended within the performance period; or

“(iii) are determined to have been awarded or expended in violation of program requirements.

“(9) ADMINISTRATION.—

“(A) IMPLEMENTING GUIDANCE.—Not later than 180 days after the date of enactment of this subsection, the Administrator shall issue implementing guidance, allocation formulas, application instructions, and reporting requirements for the program established under this subsection, consistent with the requirements applicable to the program established under subsection (b). Such guidance shall make any necessary changes and advise States on how to streamline subgrantee application processes, including to—

“(i) ensure that the standard subgrant application does not exceed 10 pages for project subgrants and 5 pages for planning subgrants, exclusive of required attachments;

“(ii) provide plain-language application instructions and, where practicable, fillable electronic forms accessible without specialized software;

“(iii) authorize States and Indian tribal governments to accept preapplication consultations in lieu of formal letters of intent;

“(iv) permit joint applications from two or more eligible entities for regional or watershed-scale projects; and

“(v) include a model application and annotated example for eligible entities with limited grant management experience.

“(B) COORDINATION.—The President shall coordinate with State, Tribal, territorial, regional, and local emergency management and floodplain management agencies, as well as State Chief Resilience Offices, in administering this subsection.

“(C) RELATION TO OTHER BRIC AWARDS.—Amounts provided under this subsection shall be in addition to, and not in lieu of, amounts otherwise made available to States, territories, and Indian tribal governments under this section.

“(10) REPORTING TO CONGRESS.—The President shall submit to Congress an annual report describing—

“(A) the amount of each allocation of funds provided under this subsection;

“(B) project types and categories funded under this subsection;

“(C) measurable outcomes, including risk reduction, enhanced preparedness, and Federal cost savings attributable to funded projects;

“(D) participation by Indian Tribal Governments and territorial governments; and

“(E) recommendations for improvements to rural, Tribal, and territorial flood resilience programs.

“(11) DEFINITIONS.—In this subsection:

“(A) CAP-MIT GRANT.—The term ‘CAP-MIT grant’ means a community assistance program grant for statewide hazard mitigation activities provided under paragraph (8).

“(B) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—

“(i) a county with a population of 50,000 or fewer;

“(ii) a municipality with a population of 10,000 or fewer;

“(iii) a county that exceeds the population threshold in clause (i) if—

“(I) the county’s population density does not exceed 35 persons per square mile; or

“(II) the county contains no incorporated municipality with a population exceeding 10,000 and the county seat has a population not exceeding 25,000;

“(iv) a local government described in section 102(8)(B) with a population not exceeding the thresholds in clauses (i), (ii), or (iii); or

“(v) a Tribal organization acting on behalf of one or more local governments described in clause (iv).

“(C) FLOOD-PRONE AREA.—

“(i) IN GENERAL.—The term ‘flood-prone area’ means an area that—

“(I) lies within the 1-percent-annual-chance (100-year) or 0.2-percent-annual-chance (500-year) floodplain as designated by Federal the Emergency Management Agency under the National Flood Insurance Program, or is otherwise designated as flood-prone by State, local, or other authorities, including dam failure inundation zones;

“(II) has experienced 2 or more damaging flood events within the preceding 15 years, as documented by a disaster declaration under this Act, insurance loss records, State or local damage assessments, or equivalent documentation; or

“(III) is identified as having significant flood risk by—

“(aa) a Federal, State, territorial, local, or Tribal hazard mitigation plan or risk assessment;

“(bb) a State or local floodplain management study or engineering analysis;

“(cc) dam failure or levee breach inundation mapping prepared by a State dam safety or levee safety program;

“(dd) hydrologic and hydraulic modeling conducted or accepted by a Federal or State agency, including the Army Corps of Engineers, Natural Resources Conservation Service, or a State water resources agency;

“(ee) stormwater master plans, watershed studies, or drainage system assessments adopted by a local government; or

“(ff) flood risk data from emerging methodologies, including privately produced datasets and climate-adjusted modeling, accepted by the Administrator as meeting standards for scientific reliability, to be established by the Administrator in implementing guidance issued under paragraph (10)(A).

“(ii) GUIDANCE.—The Administrator shall issue guidance specifying minimum documentation standards for qualifying under clause (i)(III) not later than 180 days after the date of enactment of this subsection, and shall update such guidance not less than every 5 years to reflect advances in flood risk science.

“(D) PREPAREDNESS PROJECT.—The term ‘preparedness project’ includes—

“(i) evacuation sheltering plans and emergency action plans, updates, and drills;

“(ii) interoperable emergency communication systems and flood warning systems;

“(iii) emergency operations center construction or upgrades;

“(iv) acquisition of response equipment or protective supplies;

“(v) resilience improvements to designated emergency shelters;

“(vi) updates to local codes and standards that protect against current and future flood hazards;

“(vii) development of flood hazard data where it is outdated or does not currently exist; and

“(viii) staffing, training, or retention of emergency management and floodplain management personnel.

“(E) TERRITORIAL GOVERNMENT.—The term ‘territorial government’ means the government of the Commonwealth of Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, or American Samoa.”.

SEC. 8. Conforming amendment regarding cost-shared mitigation activities.

(1) in paragraph (1) by striking “mitigation activities approved by the President” and inserting “mitigation projects funded under this section”; and

(2) in paragraph (2) by striking “the President may contribute up to” and inserting “the Federal share of a project carried out with funds provided under this section may be up to”.

SEC. 9. BRIC set-aside.

“(1) IN GENERAL.—The President shall set aside an amount equal to 10 percent of the aggregate amount of appropriations to the Disaster Relief Fund from the previous fiscal year in order to provide technical and financial assistance under this section.”.

SEC. 10. Small project set-aside and streamlined track.

“(m) Small project set-Aside and streamlined track.—

“(1) SET-ASIDE.—Of amounts made available for grants under this section for a fiscal year, including amounts made available under subsection (g), each State and Indian tribal government shall reserve not less than 15 percent of its annual allocation for small project subgrants as described in this subsection.

“(2) ELIGIBILITY.—A small project subgrant is a subgrant for a single project with a total cost of not more than $500,000, including projects for—

“(A) culvert replacement, upsizing, or removal;

“(B) roadway drainage crossing improvements;

“(C) small-scale stormwater conveyance or retention infrastructure;

“(D) stream crossing and ford stabilization; and

“(E) other small flood mitigation improvements or improvements to reduce risk to other hazards as determined by the President.

“(3) STREAMLINED APPLICATION.—States and Indian tribal governments shall develop a streamlined application form and review process for small project subgrants that—

“(A) does not require a benefit-cost analysis for projects with a total cost of less than $200,000;

“(B) limits application materials to a project description, site map, cost estimate, and attestation of eligibility; and

“(C) requires a State or Indian tribal governments decision within 60 days of receipt of a complete application.

“(4) CARRYOVER.—Unexpended small project set-aside funds in any fiscal year shall be available in the subsequent fiscal year for any eligible subgrant under this subsection.”.

SEC. 11. Regulations.

SEC. 12. Conforming amendment to the Disaster Relief Fund.