States must pay disaster deductible before receiving full federal recovery aid.
This law requires the President to establish a "major disaster deductible" for each State, shifting more financial responsibility for permanent infrastructure repair after disasters onto state governments. States must cover this calculated amount before accessing full federal funds for long-term recovery projects. The deductible calculation is based on population and the state's history of receiving federal disaster aid, aiming to encourage better preparedness investments.
Key points
States must cover a specific deductible amount for permanent infrastructure repair (Categories C-G) following a major disaster declaration.
The deductible amount is calculated based on the state's population and the amount of federal aid received in the preceding three years.
Existing state matching funds for disaster relief cannot be used to satisfy this new deductible requirement.
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