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1 [1] (November 1, 2024)

handle is hein.crs/govergb0001 and id is 1 raw text is: * Congressionol Research Service Informing the Iegisl9tive debate since 1914 S November 1, 2024 Current Status of Federal Disaster Relief Accounts Introduction Prior to Hurricanes Helene and Milton, disaster recovery programs across the federal government were already reporting budget shortfalls. Funding shortfalls can affect federal program availability: some agencies may limit spending to life-saving operations while others may pause new enrollments. Such changes can limit the speed and degree of recovery in disaster-damaged communities. On September 26, President Biden signed into law a continuing resolution (P.L. 118-83) that extended government funding for three months, including funding for many disaster-related relief programs. At the time of passage, Hurricane Helene had made landfall and dissipated; Hurricane Milton had not yet formed. Additional major disaster declarations have also been made since (though some of the incidents occurred earlier in the year): floods in Alaska and New York, fires in Connecticut and Oklahoma, among others. At least 17 different federal agencies lead or coordinate disaster assistance programs. Summaries of the largest and most visible disaster relief accounts follow below. saster Relief Fund CRS Expert: William Painter FEMA's Disaster Relief Fund (DRF) is the primary funding source for federal government response and recovery activities authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (P.L. 100-707). As a result, its level of unobligated funds is often used as shorthand for the overall availability of federal resources for response and recovery. In August, funds in the DRF ran low and FEMA implemented restrictions limiting spending to immediate response and recovery needs (rather than long-term recovery and mitigation operations). The continuing resolution signed by President Biden provided $20.26 billion in temporary budget authority for the DRF, which became available October 1. When those funds became available, FEMA resumed funding for more than $8 billion in disaster recovery and mitigation projects which had been delayed due to funding shortages. The temporary budget authority for the DRF is available for Stafford Act disaster assistance programs until December 20, 2024, or until FEMA's annual appropriations are enacted. While FEMA has indicated the DRF has enough funds to address immediate response and recovery needs with this temporary appropriation in place, if the CR expires, those funds will no longer be available, and FEMA's disaster response and recovery functions would be severely constrained. Congress has previously provided supplemental appropriations, most recently on October 2, 2023. For more information, please see CRS Report R47676, Disaster Relief Fund State of Play: In Brief. Small Business Administration CRS Expert: Bruce Lindsay On October 15, 2024, the Small Business Administration (SBA) announced it has exhausted funds for new disaster loans. SBA's disaster loan application portal and physical disaster centers remain open and staffed to process new disaster loan applications. SBA, however, announced a pause on new disaster loans for survivors affected by hurricanes Helene and Milton until Congress provides supplemental funding. The SBA Disaster Loan Account is a no-year account (funding is not tied to the end of the fiscal year) that funds disaster loans provided to eligible individuals and households, businesses, and nonprofit organizations. The SBA Disaster Loan Account is funded by (1) disaster loan payments; (2) annual appropriations; and (3) supplemental appropriations. For more information, please see CRS Report R41309, The SBA Disaster Loan Program: Overview and Possible Issues for Congress. Natona Food ,nsurance Program CRS Expert: Diane Horn The National Flood Insurance Program (NFIP) is the primary source of flood insurance coverage for residential properties. The NFIP is funded from (1) premiums, fees, and surcharges paid by NFIP policyholders; (2) direct annual appropriations for the flood hazard mapping and risk analysis program); (3) borrowing from the Treasury when the balance of the National Flood Insurance Fund (NFIF) is insufficient to pay the NFIP's obligations (e.g., insurance claims); and (4) reinsurance if NFIP losses are sufficiently large. Congress increased the borrowing limit in 2013 to its current limit of $30.425 billion. As of October 7, 2024, the NFIP had $4.817 billion available to pay claims: $1.152 billion in the NFIF and $3.665 billion in its Reserve Fund. If claims from Hurricanes Helene and Milton are more than this, FEMA could borrow up to $9.9 billion from the Treasury. FEMA could also potentially receive up to $619.5 million of reinsurance if losses from a single flood event are between $7 billion and $11 billion. The NFIP is currently authorized until December 20, 2024. Unless reauthorized or amended by Congress, the following would occur on December 20, 2024: (1) the authority to provide new flood insurance contracts will expire; and (2) the authority for the NFIP to borrow funds from the Treasury will be reduced from $30.425 billion to $1 billion. For more information, please see CRS Insight IN10835,

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