Disaster Management Costs Modernization Act

S. 773 would modify how states, local governments, and tribes use federal disaster relief funds. Currently, when FEMA provides disaster assistance grants, a portion can be used for management costs like administrative expenses and travel. However, under existing law, these management funds can only be used for the specific disaster they were awarded for. This bill would change that by allowing recipients to use excess management costs from one disaster for other open disasters or to build long-term disaster preparedness and recovery capacity. The bill would also permit recipients to retain unused management costs for up to five years after a disaster closes out. Supporters argue this gives communities more flexibility in managing multiple simultaneous disasters and helps them prepare for future emergencies. The bill is currently in the Senate Committee on Homeland Security and Governmental Affairs and has not yet been voted on by the full Senate.