H.R.2836 - FEMA Loan Interest Payment Relief Act (119th Congress)
Summary
H.R.2836, the FEMA Loan Interest Payment Relief Act, aims to amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The amendment would allow FEMA to reimburse local governments and electric cooperatives for interest expenses on loans used for disaster relief activities. The bill outlines eligibility criteria and procedures for reimbursement, including alternative procedures for outstanding qualifying interest reimbursement.
Expected Effects
This bill would provide financial relief to local governments and electric cooperatives that have incurred interest expenses while securing loans for disaster recovery efforts. It would also establish a framework for FEMA to reimburse these entities for qualifying interest payments. States would also be able to apply for reimbursement.
Potential Benefits
- Provides financial assistance to local governments and electric cooperatives for disaster relief efforts.
- Reduces the financial burden on communities recovering from disasters.
- Encourages local governments and electric cooperatives to invest in disaster preparedness and recovery.
- Streamlines the reimbursement process through alternative procedures.
- Retroactively applies to qualifying interest incurred in the 9 years preceding the enactment of the Act.
Potential Disadvantages
- Potential for increased federal spending and budget deficits.
- Complexity in determining qualifying interest and eligible loans.
- Risk of fraud or misuse of funds.
- Administrative burden on FEMA to implement and oversee the reimbursement program.
- Possible delays in reimbursement due to bureaucratic processes.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Article I, Section 8) of the U.S. Constitution, which grants Congress the power to provide for the general welfare of the United States. By providing financial assistance to local governments and electric cooperatives for disaster relief, the bill aims to promote the well-being of communities affected by disasters. The bill also falls under Congress's power to regulate commerce (Article I, Section 8), as disaster relief efforts often involve interstate commerce and the movement of goods and services across state lines.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).