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1 1 (January 10, 2022)

handle is hein.crs/govegnb0001 and id is 1 raw text is: we Congressional Research Service
Maam lnfo rrning th e legislative d ebate since 1914

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Updated January 10, 2022
Calculation and Use of the Disaster Relief Allowable Adjustment

The Budget Control Act (P.L. 112-25, hereinafter the BCA)
established limits on federal spending, as well as ways to
adjust those limits to accommodate certain priority
spending. One of these mechanisms-a limited allowable
adjustment to discretionary spending limits to pay for the
congressionally designated costs of major disasters under
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act-represented a new approach to paying for
disaster relief. In the past, while some funding for disaster
costs had been included in annual appropriations measures
as part of the regular funding process, many of these costs
had been designated as emergency requirements and were
included in supplemental appropriations measures on an ad
hoc basis. This disaster relief designation allowed a limited
amount of additional appropriations for disaster costs into
the annual appropriations process, instead of relying on
emergency designations and supplemental appropriations
bills. The formula to calculate the size of the adjustment
was revised in 2018. Although the statutory authority for
the adjustment has expired, the FY2022 budget resolution
included an adjustment for disaster relief that continues to
effectively exempt such funding from spending limits
within the congressional budget process.
Calculating the Maximum          Adjustment
The maximum size of the allowable adjustment, as defined
in 2 U.S.C. §901(b)(2)(D), was based on a modified 10-
year rolling average of disaster relief appropriations
annually reviewed and calculated by the Office of
Management and Budget (OMB). To establish amounts for
the calculation prior to FY2012, OMB identified
appropriations associated with major disaster declarations.
For FY2012 and later years, OMB relied on explicit
congressional designations of appropriations as disaster
relief pursuant to the BCA. The top of Figure 1 shows the
appropriations amounts used for FY2001-FY2020 and the
allowable adjustments calculated for FY2012-FY2021.
The calculated average disregarded the high and low
funding years in the 10-year data set. If Congress did not
fully exercise the allowable adjustment, the unused portion
could be rolled forward into the next fiscal year-however,
in calculations for FY2012-FY2017, this carryover
expired if unused in the next fiscal year. The second part of
Figure 1 shows the calculation of the adjustment for
FY2017. Annual disaster relief budget authority totals used
for the FY2017 allowable adjustment are darkened.
The Effect of One-Year Carryover
A more detailed look at FY2012-FY2018 in the third part of
Figure 1 shows the impact of this one-year carryover.
While carryover allowed for slightly greater use of the
allowable adjustment than the rolling average alone in
FY2013 and FY2017, the roughly $12 billion of additional

carryover that was available in FY2015 and FY2016
expired unused.
Figure I. Calculating the Allowable Adjustment
(in billions of nominal dollars of budget authority)
Disaster Funding and the Allowable Adjustment
Disaster Relief Budget Authority (DRBA)
Allowable Adjustment, Orig. Calculation
Allowable Adjustment. Mod. Calculation
BILLIONS      DRBA+Emergency DisasterFunding
$4A
$20                                           ~

$0

rN  N   Jn   1  N  W0   C? ri r4  oDaW ~0  O   -
0   0  0     0D   0 0  O - r  -1  -1 t -1 t -H '-1   -  '-1 ti i N  N

OMB CALCULATION

DESIGNATED (FY12-FY21)

Calculating the FY2017 Allowable Adjustment
Allowable Adjustmentisbased on previous years'DRBA:
Average of previous 10 year DRBA  i
BILLIONS    after dropping the highest and Iowestyear
$40

$20
so

BILLIO
$2

.-i  r? W N 0 O   0s n -  rI N   a  Na   00  O

Single-Year Carryover and the Adjustment
NS                               Allowable
-- Adjustment

$15                          4
$10

$5
$O

N          c'7

4

Carryover from
Prior Year
10-year
Average
Diaster Relief
- Budget
Authority

Source: CRS analysis of data from OMB sequestration reports.
Notes: DRBA=Disaster Relief Budget Authority. Red arrows
indicate the value is beyond the scale. Total DRBA and emergency-
designated disaster relief in FY2018=$96.2 billion; FY2020=$57.5
billion; and FY2021=$69.3 billion.

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