[House Report 117-289]
[From the U.S. Government Publishing Office]


117th Congress     }                                  {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                  {      117-289

======================================================================



 
            INCREASE FEDERAL DISASTER COST SHARE ACT OF 2021

                                _______
                                

 April 6, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. DeFazio, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1951]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1951) to increase the Federal share 
provided under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act for a certain time frame during fiscal 
year 2020, having considered the same, reports favorably 
thereon with amendments and recommends that the bill as amended 
do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Legislative History and Consideration............................     3
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     5
Performance Goals and Objectives.................................     7
Duplication of Federal Programs..................................     8
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     8
Federal Mandates Statement.......................................     8
Preemption Clarification.........................................     8
Advisory Committee Statement.....................................     8
Applicability to Legislative Branch..............................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SEC. 1. SHORT TITLE.

  This Act may be cited as the ``Increase Federal Disaster Cost Share 
Act of 2021''.

SEC. 2. INCREASE OF FEDERAL SHARE.

  Notwithstanding sections 403(b), 403(c)(4), 404(a), 406(b), 408(d), 
408(g)(2), 428(e)(2)(B), and 503(a) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act 10 (42 U.S.C. 5121 et seq.), for 
any major disaster declared by the President under such Act during the 
period beginning on January 1, 2020, and ending on December 31, 2020, 
the Federal share of assistance provided under such sections shall be 
not less than 90 percent of the eligible cost of such assistance.

    Amend the title so as to read:
    A bill to increase the Federal share provided under the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
for a certain time frame during 2020.

                          PURPOSE AND SUMMARY

    The purpose of H.R. 1951, as amended, is to modify the 
federal cost share of certain assistance provided under the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
for major disaster declarations from calendar year 2020.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (Stafford Act, P.L. 93-288 as amended) 
authorizes the President to make assistance available via the 
Federal Emergency Management Agency (FEMA) to supplement state, 
tribal, territorial, and local (STTL) efforts to respond to and 
recover from an incident that exceeds all available resources 
and overwhelms STTL governments.
    FEMA's Public Assistance (PA) program provides federal 
help, typically through reimbursement, to STTL governments and 
certain private non-profit organizations for emergency and/or 
permanent work. PA eligibility is based on work and damage 
which occurred as a direct result of the incident that resulted 
in a Presidential Declaration of Emergency or Major Disaster. 
FEMA covers no less than 75 percent of the cost of eligible PA 
projects. The Stafford Act and 44 CFR Sec. 206.47 provides the 
President the authority and guidance to adjust the cost share 
requirement for the PA program.
    Calendar year 2020 was unprecedented with STTL governments 
facing a record-setting number of natural disasters while 
simultaneously fighting the COVID-19 pandemic.\1\ Fiscal 
resources at the STTL levels were depleted by disaster response 
and public health costs, while also facing declines in revenues 
that fund services for healthcare, education, public safety, 
transportation, and other vital programs as a result of 
necessary measures taken to combat COVID-19 and slow its 
spread.\2\
---------------------------------------------------------------------------
    \1\See National Oceanic and Atmospheric Administration, National 
Centers for Environmental Information, ``Billion-Dollar Weather and 
Climate Disasters: Overview''. Available at https://www.ncdc.noaa.gov/
billions/; Thompson, Andrea. Scientific American. ``A Running List of 
Record-Breaking Natural Disasters in 2020''. Available at https://
www.scientificamerican.com/article/a-running-list-of-record-breaking-
natural-disasters-in-2020/.
    \2\Davidson, Kate and David Harrison. Wall Street Journal. 
``Coronavirus-Hit State Budgets Create a Drag on U.S. Recovery''. 
August 12, 2020. Available at https://www.wsj.com/articles/coronavirus-
hit-state-budgets-create-a-drag-on-u-s-recovery-11597224600.
---------------------------------------------------------------------------
    H.R. 1951, as amended, increases the federal share from 75 
percent to not less than 90 percent for major disasters 
declared by the President in calendar year 2020.

                                HEARINGS

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
117th Congress, the following hearing was used to develop or 
consider H.R. 1951:
    On March 18, 2021, the Subcommittee held a hearing titled 
``Building Smarter: The Benefits of Investing in Resilience and 
Mitigation.'' The Subcommittee received testimony from Mr. 
Russell ``Russ''' Strickland, Executive Director, Maryland 
Emergency Management Agency, State of Maryland, testifying on 
behalf of the National Emergency Management Association; Mr. 
Roy E. Wright, President and Chief Executive Officer, Insurance 
Institute for Business and Home Safety; Ms. Velma Smith, Senior 
Government Relations Officer, Flood Prepared Communities 
Initiative, Pew Charitable Trusts; Mr. Ben Harper, Head of 
Corporate Sustainability, Zurich North America Insurance 
Company; and Mr. John ``Chuck'' Fowke, Chairman, National 
Association of Home Builders. This hearing examined the current 
and future capacities in emergency management, mitigation and 
resilience, insurance, and construction.

                 LEGISLATIVE HISTORY AND CONSIDERATION

    H.R. 1951 was introduced in the House on March 16, 2021, by 
Mr. Thompson of California, and 18 original cosponsors and 
referred to the Committee on Transportation and Infrastructure. 
Within the Committee, H.R. 1951 was referred to the 
Subcommittee on Economic Development, Public Buildings, and 
Emergency Management.
    The Subcommittee on Economic Development, Public Buildings, 
and Emergency Management was discharged from further 
consideration of H.R. 1951 on March 24, 2021.
    The Full Committee considered H.R. 1951 on March 24, 2021, 
and ordered the measure to be reported to the House with a 
favorable recommendation, as amended, by a record vote of 46 
yeas and 11 nays (Roll Call Vote #19).
    The following amendments were offered:
    An amendment offered by Mr. Graves of Louisiana (#1); was 
WITHDRAWN.
    Page 2, beginning on line 6, strike ``shall be not less 
than 90 percent'' and insert ``may be at a 100 percent Federal 
cost share in any area that has experienced a severe local 
impact or recent multiple major disasters or emergencies, 
applying the same considerations as carried out by the 
Administrator of the Federal Emergency Management Agency under 
section 1232 of the Disaster Recovery Reform Act of 2018 (42 
U.S.C. 5170 note) and as determined appropriate by the 
Administrator,''.
    An amendment offered by Mr. Graves of Louisiana (#2); was 
AGREED TO by voice vote.
    Page 2, line 2, strike, ``emergency or''.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.

Committee on Transportation and Infrastructure Roll Call Vote 
        No. 19

    On: agreeing to H.R. 1951 and ordering the measure to be 
reported to the House with a favorable recommendation, as 
amended.
    Agreed to: 46 yeas and 11 nays.

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. DeFazio.....................................          Yea   Mr. Graves of MO..................          Yea
Ms. Norton......................................          Yea   Mr. Mr. Young.....................  ............
Ms. Johnson of TX...............................          Yea   Mr. Mr. Crawford..................  ............
Mr. Larsen of WA................................          Yea   Mr. Gibbs.........................          Nay
Mrs. Napolitano.................................          Yea   Mr. Webster.......................          Yea
Mr. Cohen.......................................          Yea   Mr. Massie........................          Nay
Mr. Sires.......................................          Yea   Mr. Perry.........................          Nay
Mr. Garamendi...................................          Yea   Mr. Rodney Davis of IL............          Yea
Mr. Johnson of GA...............................          Yea   Mr. Katko.........................          Yea
Mr. Carson......................................          Yea   Mr. Babin.........................          Nay
Ms. Titus.......................................          Yea   Mr. Graves of LA..................          Nay
Mr. Maloney of NY...............................          Yea   Mr. Rouzer........................          Yea
Mr. Huffman.....................................          Yea   Mr. Bost..........................          Yea
Ms. Brownley....................................          Yea   Mr. Weber of TX...................          Nay
Ms. Wilson of FL................................  ............  Mr. LaMalfa.......................          Yea
Mr. Payne.......................................          Yea   Mr. Westerman.....................          Nay
Mr. Lowenthal...................................  ............  Mr. Mast..........................          Yea
Mr. DeSaulnier..................................          Yea   Mr. Gallagher.....................          Nay
Mr. Lynch.......................................          Yea   Mr. Fitzpatrick...................          Yea
Mr. Carbajal....................................  ............  Miss Gonzalez-Colon...............          Yea
Mr. Brown.......................................          Yea   Mr. Balderson.....................          Yea
Mr. Malinowski..................................  ............  Mr. Stauber.......................  ............
Mr. Stanton.....................................          Yea   Mr. Burchett......................          Nay
Mr. Allred......................................          Yea   Mr. Johnson of SD.................          Nay
Ms. Davids of KS................................          Yea   Mr. Van Drew......................          Yea
Mr. Garcia of IL................................          Yea   Mr. Guest.........................  ............
Mr. Delgado.....................................          Yea   Mr. Nehls.........................          Yea
Mr. Pappas......................................          Yea   Ms. Mace..........................          Yea
Mr. Lamb........................................          Yea   Ms. Malliotakis...................          Yea
Mr. Moulton.....................................  ............  Ms. Van Duyne.....................  ............
Mr. Auchincloss.................................          Yea   Mr. Gimenez.......................  ............
Ms. Bourdeaux...................................          Yea   Mrs. Steel........................          Nay
Mr. Kahele......................................          Yea
Ms. Strickland..................................          Yea
Ms. Williams of GA..............................          Yea
Ms. Newman......................................          Yea
Vacancy.........................................  ............
----------------------------------------------------------------------------------------------------------------

                      COMMITTEE OVERSIGHT FINDINGS

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 1951 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 2, 2021.
Hon. Peter A. DeFazio,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1951, the Increase 
Federal Disaster Cost Share Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    Bill summary: H.R. 1951 would increase the federal share of 
costs to 90 percent for any disasters that were declared by the 
President in calendar year 2020. Under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act, the federal 
government typically pays 75 percent of total recovery costs 
unless the Federal Emergency Management Agency (FEMA) agrees to 
pay a higher share; state governments pay the rest.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 1951 is shown in Table 1. The costs of the legislation 
fall within budget function 450 (community and regional 
development).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1951
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2022   2023   2024   2025   2026   2027   2028   2029   2030   2031  2022-2026  2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Retroactive Costs:
    Estimated Budget Authority..............................      0      0      0      0      0      0      0      0      0      0        0          0
    Estimated Outlays.......................................    250      0      0      0      0      0      0      0      0      0      250        250
Prospective Costs:
    Estimated Budget Authority..............................      0      0      0      0      0      0      0      0      0      0        0          0
    Estimated Outlays.......................................     60     90     90     85     80     70     55     40     30     20      405        620
Total Changes in Direct Spending:
    Estimated Budget Authority..............................      0      0      0      0      0      0      0      0      0      0        0          0
    Estimated Outlays.......................................    310     90     90     85     80     70     55     40     30     20      655        870
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted by the end of calendar year 2021 and that 
outlays will follow historical spending patterns for the 
affected programs.
    Direct spending: H.R. 1951 would increase the federal share 
of costs from 75 percent to 90 percent for any major disaster 
declared in 2020; state governments pay the remaining portion. 
As a result, FEMA would pay 15 percent more of the costs of 
providing assistance to eligible entities within states that 
were affected by qualifying disasters (those entities include 
local governments, as well as individuals and households).
    During 2020, 104 disaster declarations were made, including 
57 declarations on behalf of states and Indian tribes for the 
coronavirus pandemic (a declaration is made for each state or 
tribe affected by a particular disaster). Under current law, 
FEMA administratively increased the federal share for disasters 
related to the pandemic to 100 percent and increased the 
federal share to 90 percent for the declaration related to 
Hurricane Laura's effects in Louisiana. Therefore, CBO expects 
that enacting H.R. 1951 would result in higher costs with 
respect to the remaining 46 declarations.
    Retroactive Costs. For those disasters that would be 
affected by the bill, FEMA has already obligated nearly $1.3 
billion in assistance, paying 75 percent of project costs that 
total nearly $1.7 billion. Using information provided by the 
agency, CBO estimates that under the bill FEMA would 
retroactively pay an additional 15 percent of those costs--
about $250 million--in 2022.
    Prospective Costs. In addition, FEMA would pay a higher 
share on any future assistance allocated for those events. 
Using information provided by FEMA about the agency's 
projections of future needs, CBO expects that FEMA and states 
will obligate funds to offset about $4.5 billion in losses over 
the 2022-2031 period. Under the bill, FEMA would be responsible 
for an additional 15 percent of those costs--$675 million. Of 
that amount, CBO estimates that the agency would spend $620 
million over the 2022-2031 period from amounts available for 
that purpose. The balance, CBO estimates, would be spent after 
2031.
    In total, CBO estimates that enacting H.R. 1951 would 
increase spending by $870 million over the 2022-2031 period.
    Uncertainty: This estimate is subject to considerable 
uncertainty. Because H.R. 1951 would increase the share of 
costs paid by the federal government--rather than state 
governments--the cost of the legislation would principally 
depend upon how much FEMA allocates for recovery from those 
qualifying disasters. While CBO's estimate of additional 
spending under the bill is informed by FEMA's current 
projection of the amounts that it will allocate for these 
disasters over the next decade, the ultimate amounts that will 
be provided--particularly later in the decade--are difficult to 
predict. Based on the needs of recipient communities in the 
future, if FEMA decided to increase or decrease the amounts 
allocated, spending under H.R. 1951 would, in turn, be higher 
or lower than CBO estimates.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 2. (Most of the 
outlays would come from appropriations designated in accordance 
with section 251 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 as emergency requirements or for disaster 
relief.)

  TABLE 2.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 1951, THE INCREASE FEDERAL COST SHARE ACT OF 2021, AS ORDERED REPORTED BY THE
                                         HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON MARCH 24, 2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          By fiscal year, millions of dollars
                                                             -------------------------------------------------------------------------------------------
                                                               2022   2023   2024   2025   2026   2027   2028   2029   2030   2031  2022-2026  2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Net Increase in the On-Budget Deficit
 
Pay-As-You-Go Effect........................................    310     90     90     85     80     70     55     40     30     20      655        870
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: CBO estimates that enacting 
H.R. 1951 would not increase on-budget deficits by more than $5 
billion in any of the four consecutive 10-year periods 
beginning in 2032.
    Mandates: None.
    Estimate prepared by: Federal Costs: Jon Sperl, Mandates: 
Rachel Austin.
    Estimate reviewed by: Justin Humphrey, Chief, Finance, 
Housing, and Education Cost Estimates Unit, H. Samuel 
Papenfuss, Deputy Director of Budget Analysis; Theresa Gullo, 
Director of Budget Analysis.

                    PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to reduce 
the financial burden on state, tribal, local, and territorial 
governments by increasing the Federal cost share for all 
disasters declared during calendar year 2020.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 1951, as amended, establishes or reauthorizes a program 
of the federal government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 1951 does not 
preempt any state, local, or tribal law.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section provides that this bill may be cited as the 
``Increase Federal Disaster Cost Share Act of 2021''.

Sec. 2. Increase of Federal share

    This section states that the Federal share of assistance 
provided pursuant to sections 403(b), 403(c)(4), 404(a), 
406(b), 408(d), 408(g)(2), 428(e)(2)(B), and 503(a) of the 
Stafford Act for any major disaster declared by the President 
between January 1, 2020, and December 31, 2020, shall be not 
less than 90 percent of the eligible cost of such assistance.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported by the Committee, H.R. 1951, as amended, makes 
no changes in existing law.

                                  
                                  
                                  [all]