1. (a) Contributions

   1. (1) In general The President may make contributions—

      1. (A) to a State or local government for the repair, restoration, reconstruction, or replacement of a public facility damaged or destroyed by a major disaster and for associated expenses incurred by the government; and
      2. (B) subject to paragraph (3), to a person that owns or operates a private nonprofit facility damaged or destroyed by a major disaster for the repair, restoration, reconstruction, or replacement of the facility and for associated expenses incurred by the person.

   2. (2) Associated expenses For the purposes of this section, associated expenses shall include—

      1. (A) the costs of mobilizing and employing the National Guard for performance of eligible work;
      2. (B) the costs of using prison labor to perform eligible work, including wages actually paid, transportation to a worksite, and extraordinary costs of guards, food, and lodging; and
      3. (C) base and overtime wages for the employees and extra hires of a State, local government, or person described in paragraph (1) that perform eligible work, plus fringe benefits on such wages to the extent that such benefits were being paid before the major disaster.

   3. (3) Conditions for assistance to private nonprofit facilities

      1. (A) In general The President may make contributions to a private nonprofit facility under paragraph (1)(B) only if—

         1. (i) the facility provides critical services (as defined by the President) in the event of a major disaster; or

         2. (ii) the owner or operator of the facility—

            1. (I) has applied for a disaster loan under section 636(b) of title 15; and

            2. (II)

               1. (aa) has been determined to be ineligible for such a loan; or
               2. (bb) has obtained such a loan in the maximum amount for which the Small Business Administration determines the facility is eligible.
      2. (B) Definition of critical services In this paragraph, the term “critical services” includes power, water (including water provided by an irrigation organization or facility), sewer, wastewater treatment, communications (including broadcast and telecommunications), education, and emergency medical care.
      3. (C) Religious facilities A church, synagogue, mosque, temple, or other house of worship, educational facility, or any other private nonprofit facility, shall be eligible for contributions under paragraph (1)(B), without regard to the religious character of the facility or the primary religious use of the facility. No house of worship, educational facility, or any other private nonprofit facility may be excluded from receiving contributions under paragraph (1)(B) because leadership or membership in the organization operating the house of worship is limited to persons who share a religious faith or practice.

   4. (4) Notification to Congress Before making any contribution under this section in an amount greater than $20,000,000, the President shall notify—

      1. (A) the Committee on Environment and Public Works of the Senate;
      2. (B) the Committee on Transportation and Infrastructure of the House of Representatives;
      3. (C) the Committee on Appropriations of the Senate; and
      4. (D) the Committee on Appropriations of the House of Representatives.

2. (b) Federal share

   1. (1) Minimum Federal share Except as provided in paragraph (2), the Federal share of assistance under this section shall be not less than 75 percent of the eligible cost of repair, restoration, reconstruction, or replacement carried out under this section.

   2. (2) Reduced Federal share The President shall promulgate regulations to reduce the Federal share of assistance under this section to not less than 25 percent in the case of the repair, restoration, reconstruction, or replacement of any eligible public facility or private nonprofit facility following an event associated with a major disaster—

      1. (A) that has been damaged, on more than one occasion within the preceding 10-year period, by the same type of event; and
      2. (B) the owner of which has failed to implement appropriate mitigation measures to address the hazard that caused the damage to the facility.

   3. (3) Increased federal share

      1. (A) Incentive measures The President may provide incentives to a State or Tribal government to invest in measures that increase readiness for, and resilience from, a major disaster by recognizing such investments through a sliding scale that increases the minimum Federal share to 85 percent. Such measures may include—

         1. (i) the adoption of a mitigation plan approved under section 5165 of this title;
         2. (ii) investments in disaster relief, insurance, and emergency management programs;
         3. (iii) encouraging the adoption and enforcement of the latest published editions of relevant consensus-based codes, specifications, and standards that incorporate the latest hazard-resistant designs and establish minimum acceptable criteria for the design, construction, and maintenance of residential structures and facilities that may be eligible for assistance under this chapter for the purpose of protecting the health, safety, and general welfare of the buildings’ users against disasters;
         4. (iv) facilitating participation in the community rating system; and
         5. (v) funding mitigation projects or granting tax incentives for projects that reduce risk.
      2. (B) Comprehensive guidance Not later than 1 year after February 9, 2018, the President, acting through the Administrator, shall issue comprehensive guidance to State and Tribal governments regarding the measures and investments, weighted appropriately based on actuarial assessments of eligible actions, that will be recognized for the purpose of increasing the Federal share under this section. Guidance shall ensure that the agency’s review of eligible measures and investments does not unduly delay determining the appropriate Federal cost share.
      3. (C) Report One year after the issuance of the guidance required by subparagraph (B), the Administrator shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report regarding the analysis of the Federal cost shares paid under this section.
      4. (D) Savings clause Nothing in this paragraph prevents the President from increasing the Federal cost share above 85 percent.

3. (c) Large in-lieu contributions

   1. (1) For public facilities

      1. (A) In general In any case in which a State or local government determines that the public welfare would not best be served by repairing, restoring, reconstructing, or replacing any public facility owned or controlled by the State or local government, the State or local government may elect to receive, in lieu of a contribution under subsection (a)(1)(A), a contribution in an amount equal to 90 percent of the Federal share of the Federal estimate of the cost of repairing, restoring, reconstructing, or replacing the facility and of management expenses.

      2. (B) Use of funds Funds contributed to a State or local government under this paragraph may be used—

         1. (i) to repair, restore, or expand other selected public facilities;
         2. (ii) to construct new facilities; or
         3. (iii) to fund hazard mitigation measures that the State or local government determines to be necessary to meet a need for governmental services and functions in the area affected by the major disaster.

      3. (C) Limitations Funds made available to a State or local government under this paragraph may not be used for—

         1. (i) any public facility located in a regulatory floodway (as defined in section 59.1 of title 44, Code of Federal Regulations (or a successor regulation)); or
         2. (ii) any uninsured public facility located in a special flood hazard area identified by the Administrator of the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

   2. (2) For private nonprofit facilities

      1. (A) In general In any case in which a person that owns or operates a private nonprofit facility determines that the public welfare would not best be served by repairing, restoring, reconstructing, or replacing the facility, the person may elect to receive, in lieu of a contribution under subsection (a)(1)(B), a contribution in an amount equal to 75 percent of the Federal share of the Federal estimate of the cost of repairing, restoring, reconstructing, or replacing the facility and of management expenses.

      2. (B) Use of funds Funds contributed to a person under this paragraph may be used—

         1. (i) to repair, restore, or expand other selected private nonprofit facilities owned or operated by the person;
         2. (ii) to construct new private nonprofit facilities to be owned or operated by the person; or
         3. (iii) to fund hazard mitigation measures that the person determines to be necessary to meet a need for the person’s services and functions in the area affected by the major disaster.

      3. (C) Limitations Funds made available to a person under this paragraph may not be used for—

         1. (i) any private nonprofit facility located in a regulatory floodway (as defined in section 59.1 of title 44, Code of Federal Regulations (or a successor regulation)); or
         2. (ii) any uninsured private nonprofit facility located in a special flood hazard area identified by the Administrator of the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

4. (d) Flood insurance

   1. (1) Reduction of Federal assistance If a public facility or private nonprofit facility located in a special flood hazard area identified for more than 1 year by the Administrator pursuant to the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is damaged or destroyed, after the 180th day following November 23, 1988, by flooding in a major disaster and such facility is not covered on the date of such flooding by flood insurance, the Federal assistance which would otherwise be available under this section with respect to repair, restoration, reconstruction, and replacement of such facility and associated expenses shall be reduced in accordance with paragraph (2).

   2. (2) Amount of reduction The amount of a reduction in Federal assistance under this section with respect to a facility shall be the lesser of—

      1. (A) the value of such facility on the date of the flood damage or destruction, or
      2. (B) the maximum amount of insurance proceeds which would have been payable with respect to such facility if such facility had been covered by flood insurance under the National Flood Insurance Act of 1968 on such date.
   3. (3) Exception Paragraphs (1) and (2) shall not apply to a private nonprofit facility which is not covered by flood insurance solely because of the local government’s failure to participate in the flood insurance program established by the National Flood Insurance Act.
   4. (4) Dissemination of information The President shall disseminate information regarding the reduction in Federal assistance provided for by this subsection to State and local governments and the owners and operators of private nonprofit facilities who may be affected by such a reduction.

5. (e) Eligible cost

   1. (1) Determination

      1. (A) In general For the purposes of this section, the President shall estimate the eligible cost of repairing, restoring, reconstructing, or replacing a public facility or private nonprofit facility—

         1. (i) on the basis of the design of the facility as the facility existed immediately before the major disaster; and
         2. (ii) in conformity with codes, specifications, and standards (including floodplain management and hazard mitigation criteria required by the President or under the Coastal Barrier Resources Act (16 U.S.C. 3501 et seq.)) applicable at the time at which the disaster occurred.

      2. (B) Cost estimation procedures

         1. (i) In general Subject to paragraph (2), the President shall use the cost estimation procedures established under paragraph (3) to determine the eligible cost under this subsection.
         2. (ii) Applicability The procedures specified in this paragraph and paragraph (2) shall apply only to projects the eligible cost of which is equal to or greater than the amount specified in section 5189 of this title.

   2. (2) Modification of eligible cost

      1. (A) Actual cost greater than ceiling percentage of estimated cost In any case in which the actual cost of repairing, restoring, reconstructing, or replacing a facility under this section is greater than the ceiling percentage established under paragraph (3) of the cost estimated under paragraph (1), the President may determine that the eligible cost includes a portion of the actual cost of the repair, restoration, reconstruction, or replacement that exceeds the cost estimated under paragraph (1).

      2. (B) Actual cost less than estimated cost

         1. (i) Greater than or equal to floor percentage of estimated cost In any case in which the actual cost of repairing, restoring, reconstructing, or replacing a facility under this section is less than 100 percent of the cost estimated under paragraph (1), but is greater than or equal to the floor percentage established under paragraph (3) of the cost estimated under paragraph (1), the State or local government or person receiving funds under this section shall use the excess funds to carry out cost-effective activities that reduce the risk of future damage, hardship, or suffering from a major disaster.
         2. (ii) Less than floor percentage of estimated cost In any case in which the actual cost of repairing, restoring, reconstructing, or replacing a facility under this section is less than the floor percentage established under paragraph (3) of the cost estimated under paragraph (1), the State or local government or person receiving assistance under this section shall reimburse the President in the amount of the difference.
      3. (C) No effect on appeals process Nothing in this paragraph affects any right of appeal under section 5189a of this title.

   3. (3) Expert panel

      1. (A) Establishment Not later than 18 months after October 30, 2000, the President, acting through the Administrator of the Federal Emergency Management Agency, shall establish an expert panel, which shall include representatives from the construction industry and State and local government.

      2. (B) Duties The expert panel shall develop recommendations concerning—

         1. (i) procedures for estimating the cost of repairing, restoring, reconstructing, or replacing a facility consistent with industry practices; and
         2. (ii) the ceiling and floor percentages referred to in paragraph (2).

      3. (C) Regulations Taking into account the recommendations of the expert panel under subparagraph (B), the President shall promulgate regulations that establish—

         1. (i) cost estimation procedures described in subparagraph (B)(i); and
         2. (ii) the ceiling and floor percentages referred to in paragraph (2).
      4. (D) Review by President Not later than 2 years after the date of promulgation of regulations under subparagraph (C) and periodically thereafter, the President shall review the cost estimation procedures and the ceiling and floor percentages established under this paragraph.
      5. (E) Report to Congress Not later than 1 year after the date of promulgation of regulations under subparagraph (C), 3 years after that date, and at the end of each 2-year period thereafter, the expert panel shall submit to Congress a report on the appropriateness of the cost estimation procedures.
   4. (4) Special rule In any case in which the facility being repaired, restored, reconstructed, or replaced under this section was under construction on the date of the major disaster, the cost of repairing, restoring, reconstructing, or replacing the facility shall include, for the purposes of this section, only those costs that, under the contract for the construction, are the owner’s responsibility and not the contractor’s responsibility.

(Pub. L. 93–288, title IV, § 406, as added Pub. L. 100–707, title I, § 106(b), Nov. 23, 1988, 102 Stat. 4699; amended Pub. L. 106–390, title II, § 205(a)–(d)(1), (e), Oct. 30, 2000, 114 Stat. 1562–1564, 1566; Pub. L. 109–295, title VI, § 689h, Oct. 4, 2006, 120 Stat. 1453; Pub. L. 109–347, title VI, § 609, Oct. 13, 2006, 120 Stat. 1942; Pub. L. 111–351, § 3(c)(2), Jan. 4, 2011, 124 Stat. 3864; Pub. L. 114–111, § 2(b), Dec. 18, 2015, 129 Stat. 2240; Pub. L. 115–123, div. B, title VI, §§ 20604(b), 20606, Feb. 9, 2018, 132 Stat. 86.)

References in Text

This chapter, referred to in subsec. (b)(3)(A)(iii), was in the original “this Act”, meaning Pub. L. 93–288, May 22, 1974, 88 Stat. 143. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of this title and Tables.

The National Flood Insurance Act of 1968, referred to in subsecs. (c)(1)(C)(ii), (2)(C)(ii) and (d)(1), (2)(B), is title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, as amended, which is classified principally to chapter 50 (§ 4001 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables.

The National Flood Insurance Act, referred to in subsec. (d)(3), probably means the National Flood Insurance Act of 1968. See above.

The Coastal Barrier Resources Act, referred to in subsec. (e)(1)(A)(ii), is Pub. L. 97–348, Oct. 18, 1982, 96 Stat. 1653, as amended, which is classified principally to chapter 55 (§ 3501 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set out under section 3501 of Title 16 and Tables.

Prior Provisions

A prior section 5172, Pub. L. 93–288, title IV, § 402, May 22, 1974, 88 Stat. 153, related to repair and restoration of damaged facilities, prior to repeal by Pub. L. 100–707, § 106(b).

A prior section 406 of Pub. L. 93–288 was renumbered section 409 by Pub. L. 100–707 and is classified to section 5176 of this title.

Amendments

2018—Subsec. (a)(3)(C). Pub. L. 115–123, § 20604(b), added subpar. (C).

Subsec. (b)(3). Pub. L. 115–123, § 20606, added par. (3).

2015—Subsec. (a)(3)(B). Pub. L. 114–111 substituted “communications (including broadcast and telecommunications),” for “communications,”.

2011—Subsecs. (c)(1)(C)(ii), (2)(C)(ii), (d)(1), (e)(3)(A). Pub. L. 111–351 substituted “Administrator” for “Director”.

2006—Subsec. (a)(3)(B). Pub. L. 109–295 inserted “education,” after “communications,”.

Subsec. (c)(1)(A). Pub. L. 109–347, § 609(1), substituted “90” for “75”.

Subsec. (c)(1)(B) to (D). Pub. L. 109–347, § 609(2), (3), redesignated subpars. (C) and (D) as (B) and (C), respectively, and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as follows: “In any case in which a State or local government determines that the public welfare would not best be served by repairing, restoring, reconstructing, or replacing any public facility owned or controlled by the State or local government because soil instability in the disaster area makes repair, restoration, reconstruction, or replacement infeasible, the State or local government may elect to receive, in lieu of a contribution under subsection (a)(1)(A) of this section, a contribution in an amount equal to 90 percent of the Federal share of the Federal estimate of the cost of repairing, restoring, reconstructing, or replacing the facility and of management expenses.”

2000—Subsec. (a). Pub. L. 106–390, § 205(a), added subsec. (a) and struck out heading and text of former subsec. (a). Text read as follows: “The President may make contributions—

“(1) to a State or local government for the repair, restoration, reconstruction, or replacement of a public facility which is damaged or destroyed by a major disaster and for associated expenses incurred by such government; and

“(2) to a person who owns or operates a private nonprofit facility damaged or destroyed by a major disaster for the repair, restoration, reconstruction, or replacement of such facility and for associated expenses incurred by such person.”

Subsec. (b). Pub. L. 106–390, § 205(b), added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows: “The Federal share of assistance under this section shall be not less than—

“(1) 75 percent of the net eligible cost of repair, restoration, reconstruction, or replacement carried out under this section;

“(2) 100 percent of associated expenses described in subsections (f)(1) and (f)(2) of this section; and

“(3) 75 percent of associated expenses described in subsections (f)(3), (f)(4), and (f)(5) of this section.”

Subsec. (c). Pub. L. 106–390, § 205(c), added subsec. (c) and struck out heading and text of former subsec. (c) which provided that, upon a determination that the public welfare would not be best served by repairing, restoring, reconstructing, or replacing either a public facility or a private nonprofit facility, an election could be made to receive, in lieu of a contribution under subsec. (a), a contribution of not to exceed 90 percent of the Federal share of the Federal estimate of the cost of repairing, restoring, reconstructing, or replacing the facility and of associated expenses, with the restriction that such funds not be used for any State or local government cost-sharing contribution required under this chapter.

Subsec. (e). Pub. L. 106–390, § 205(d)(1), added subsec. (e) and struck out heading and text of former subsec. (e). Text read as follows:

“(1) General rule.—For purposes of this section, the cost of repairing, restoring, reconstructing, or replacing a public facility or private nonprofit facility on the basis of the design of such facility as it existed immediately prior to the major disaster and in conformity with current applicable codes, specifications, and standards (including floodplain management and hazard mitigation criteria required by the President or by the Coastal Barrier Resources Act (16 U.S.C. 3501 et seq.)) shall, at a minimum, be treated as the net eligible cost of such repair, restoration, reconstruction, or replacement.

“(2) Special rule.—In any case in which the facility being repaired, restored, reconstructed, or replaced under this section was under construction on the date of the major disaster, the cost of repairing, restoring, reconstructing, or replacing such facility shall include, for purposes of this section, only those costs which, under the contract for such construction, are the owner’s responsibility and not the contractor’s responsibility.”

Subsec. (f). Pub. L. 106–390, § 205(e), struck out subsec. (f) which set out various associated expenses, including necessary and extraordinary costs, and costs of using the National Guard and prison labor.

Effective Date of 2018 Amendment

Amendment by section 20604(b) of Pub. L. 115–123 applicable to provision of assistance in response to major disaster or emergency declared on or after Aug. 23, 2017, or, with respect to any application for assistance that, as of Feb. 9, 2018, is pending before Federal Emergency Management Agency, and any application for assistance that has been denied, where a challenge to that denial is not yet finally resolved as of Feb. 9, 2018.”

Effective Date of 2000 Amendment

Pub. L. 106–390, title II, § 205(d)(2), Oct. 30, 2000, 114 Stat. 1566, provided that:

“The amendment made by paragraph (1) [amending this section] takes effect on the date of the enactment of this Act [

Oct. 30, 2000] and applies to funds appropriated after the date of the enactment of this Act, except that paragraph (1) of section 406(e) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act [subsec. (e)(1) of this section] (as amended by paragraph (1)) takes effect on the date on which the cost estimation procedures established under paragraph (3) of that section take effect.”

Transfer of Functions

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security.

For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.