U.S. House Holds Hearing on FEMA Reform Legislation

July 15, 2026

This week, the House Transportation & Infrastructure (T&I) Committee held a hearing to examine efforts to improve federal disaster assistance; discuss how the FEMA Act supports needed reforms; and review recommendations developed by the White House FEMA Review Council. Georgia Congressmen Mike Collins (R-10), Clay Fuller (R-14), and Hank Johnson (D-4) serve on the committee.

H.R. 4669, the Fixing Emergency Management for Americans (FEMA) Act, overwhelmingly passed the T&I Committee in September 2025, but has not seen any further movement. Since then, the Department of Homeland Security (DHS) and FEMA are under new leadership, and the White House FEMA Review Council released their recommendations.

The latest hearing featured the following witnesses testifying in favor of the bill:

    • Craig Fugate, Former FEMA Administrator
    • Cynthia Lee Sheng, President, Jefferson Parish, Louisiana, on behalf of the National Association of Counties
    • Jim Matheson, Chief Executive Officer, National Rural Electric Cooperative Association
    • Brian Waller, Vice President, External Relations, Shelter Mutual Insurance Company, on behalf of the National Association of Mutual Insurance Companies
    • Chuck Chaitovitz, Vice President, Environmental Affairs and Sustainability, United States Chamber of Commerce

The nearly four-hour discussion focused on expediting recovery timelines, ensuring access to funds on the front-end of disasters, and streamlining administrative burdens. The House would need to pass the bill before the Senate could take it up. The Senate has shown limited appetite for such drastic change to FEMA.

The FEMA Act includes the following provisions:

Public Assistance Program Reforms

A central part of the Act is reforming FEMA’s Public Assistance (PA) program, which supports local governments in clearing debris, repairing infrastructure and restoring essential services after disasters. Key changes include:

    • Block Grants for Small Disasters: A new block grant program covers events that cause $1 million to $10 million in damage but fall short of major disaster thresholds. Funds can be used for debris removal, infrastructure repairs, emergency protective measures and mitigation projects. FEMA must distribute these grants within 30 days of a declaration, with a minimum 75% federal cost share.
    • Expedited Emergency Work Funding: FEMA must provide up to 25 percent of the approved federal share for emergency work—such as debris clearance and protective measures—within 10 days of a declaration.
    • Simplified Closeouts: Smaller projects may close automatically once funds are disbursed, and FEMA must establish timelines for reviewing and approving larger projects.
    • Procurement Consistency: FEMA must align procurement requirements with federal standards and issue pre-approved contract templates. Governments that follow FEMA’s guidance are covered by a “safe harbor” from retroactive funding clawbacks.

Individual and Household Assistance

The Act also introduces reforms aimed at making disaster assistance more accessible for survivors. Among the changes:

    • Universal Application: Disaster survivors will be able to use a single application for FEMA, Small Business Administration (SBA), Department of Housing and Urban Development (HUD), United States Department of Agriculture (USDA) and Department of Health and Human Services (HHS) assistance programs. This is designed to reduce the need for multiple applications for different forms of aid.
    • Improved Notices and Guides: FEMA must issue plain-language, multilingual and mobile-friendly guidance to make information clearer and more accessible.
    • Housing Reforms: FEMA gains expanded authority to provide non-congregate sheltering, extend rental assistance and fund housing repairs or partial rebuilds. The Act also allows for state-managed housing recovery programs, giving states discretion to oversee recovery in certain circumstances.

Mitigation and Resilience

The legislation expands opportunities for mitigation and resilience projects to reduce future risks. Provisions include:

    • Broader Project Eligibility: FEMA’s mitigation programs may now support projects such as utility resilience, broadband infrastructure and cybersecurity.
    • Building Code Incentives: Communities that adopt modern building codes may qualify for higher federal cost shares for mitigation funding.
    • Revolving Loan Fund Expansion: The Act grows FEMA’s Hazard Mitigation Revolving Loan Fund program, giving states and local governments access to low-interest loans for wildfire, drought, seismic and cyber risk reduction projects.

Transparency and Accountability

The Act requires FEMA to make its processes more transparent and consistent. These include:

    • Public Dashboards: FEMA must publish real-time dashboards showing disaster declarations, funding obligations and reimbursement timelines.
    • Appeals Database: The Act creates a national database of appeals so outcomes can be reviewed and compared across cases.
    • Targeted Oversight: FEMA is directed to focus audits on higher-risk projects rather than applying uniform requirements across all jurisdictions.
    • Safe Harbor Protections: Local governments that follow FEMA’s approved rules and guidance in good faith are protected from retroactive penalties.

Organizational and Structural Changes

Beyond funding and program reforms, the Act elevates FEMA’s role within the federal government and establishes new offices. Among the highlights:

    • Independent Status: The Act establishes FEMA as an independent, cabinet-level agency with its administrator confirmed by the Senate.
    • New and Codified Offices: FEMA will codify its existing core offices and add new ones, including offices for cyber and emerging threats, equal rights and external affairs.
    • Regional Authority: Regional FEMA administrators receive expanded authority to approve projects, expedite funding and coordinate directly with state and local officials.

Review the section-by-section summary of the bill.


Share: