Disaster Resiliency and Coverage Act

Summary#

This bill would add a new Individual Household Disaster Mitigation Program to the Stafford Act. The President would set eligible disaster risk areas and provide grants to States and Indian tribal governments to pay for pre-disaster home upgrades in those high-risk areas. States and tribes would submit plans that identify risk areas, assess homeowner insurance availability and affordability, list eligible mitigation activities, set applicant criteria (including household income and whether the home is in a Community Disaster Resilience Zone), and set maximum grant amounts per household.

The program limits grants to households in high-risk areas and disqualifies individuals with adjusted gross income over $250,000 ($500,000 for joint returns). The Federal government would set mitigation standards (possibly multi-tiered) and consult insurance regulators, industry, consumer and environmental groups. States must provide public guidance to insurers and consumers suggesting insurance incentives for households that complete mitigation work. The bill caps federal grants at $10,000 per household (not to exceed actual cost) and directs annual increases by the Consumer Price Index.

A wide list of qualifying mitigation activities is included, such as strengthening roof attachments, secondary water barriers, impact- or fire-resistant roof coverings, elevating dwellings, installing flood vents and check valves, stormwater systems, storm shelters or safe rooms, generators, ignition-resistant materials, vegetation reduction and other FEMA- or committee-identified measures. The bill would create a 50-member Hazard Mitigation Advisory Committee representing insurance regulators, insurers, brokers, consumer groups, emergency responders, builders, academic experts, environmental organizations, and others to advise on mitigation activities and effectiveness.

The bill also amends the tax code to exclude amounts received under the new program (and certain state programs) from gross income, to include specified agricultural disaster assistance as qualified disaster relief, and to create a new tax credit equal to 30% of qualifying disaster mitigation expenditures (with rules for coordination with State reimbursements, basis reduction, and denial of double benefits).

What it means for you#

  • Homeowners in designated high-risk areas: You could be eligible for a grant from your State or tribe to pay for approved home upgrades if you meet income limits (AGI ≤ $250,000 single; ≤ $500,000 joint). Grants would be paid through State or tribal programs, and a maximum federal grant per household is $10,000 (CPI-adjusted).
  • Homeowners who pay for mitigation work themselves: A new federal tax credit equal to 30% of qualifying mitigation expenditures could apply, subject to coordination if the State also pays part of the cost. Grant and program payments would be excluded from gross income under the tax code as described.
  • States and Indian tribal governments: You must submit plans identifying risk areas, insurance availability, eligible activities, applicant criteria, and financial plans to receive grants. You would also publish guidance to insurers and consumers describing incentives.
  • Insurance sector and regulators: The bill requires consultation with insurance regulators and industry stakeholders and asks States to offer guidance suggesting actuarially supported pricing benefits (discounts, rebates, premium credits) for homes that meet mitigation standards.
  • Agricultural producers: The bill names certain existing agricultural disaster programs whose assistance would be treated as qualified disaster relief for tax exclusion purposes.

Expenses#

No publicly available information on total federal cost or revenue effects is provided in the bill text. The bill does specify program-level financial limits and tax changes that affect how funds are used and taxed:

  • Federal grant cap: up to $10,000 per individual household, adjusted annually by the Consumer Price Index and not to exceed the actual cost of mitigation activities.
  • Income eligibility cap for grants: adjusted gross income over $250,000 (individual) or $500,000 (joint) disqualifies an applicant.
  • New tax credit: a credit equal to 30% of qualifying mitigation expenditures, with rules to reduce the credit proportionally if a State pays part of the cost.
  • Tax exclusions: amounts received under the new federal program and certain State-based mitigation payments are excluded from gross income. Some tax provisions specify effective dates (amounts after enactment or taxable years beginning after December 31, 2025).

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.