Rep. Dunn (FL-2), Rep. Soto (FL-9), and Rep. Graves (LA-6) recently introduced H.R. 2672, the FEMA Loan Interest Payment Relief Act. According to the sponsors, the bill would require FEMA to reimburse state and local governments and electric cooperatives for interest incurred on Stafford Act disaster-related loans.
H.R. 2672 is supported by National Rural Electric Cooperative Association, American Public Power Association, Florida Municipal Electric Association, Florida Electric Cooperatives Association, and Build Strong Coalition.
We have been asked by Rep. Dunn's staff to endorse the bill. Thoughts?
I took a look at the legislation, it's pretty short and straight forward.
The real solution to the problem is to cut the red tape out of the PA reimbursement process and get money flowing quicker. But this seems like a good interim measure to ensure municipalities and co-ops aren't stuck with massive interest bills while waiting on reimbursement. Might entice FEMA to move quicker, or longer term, continue to try and make process enhancements so people aren't waiting on checks.
Some questions that come to mind:
Does this legislation create consequences for the wrong party if it's a state-led public assistance process and the state is actually the source of the delays?
My other question was what happens when a municipality or co-op obtains a loan for Cat C-G projects and only a portion of those projects are deemed eligible, would FEMA only foot the portion of the interest bill for the eligible projects? But, it looks like ""(B) of which not less than 90 percent of the proceeds are used to fund activities for which such local government or electric cooperative receives assistance under this Act after the date on which such loan is disbursed."" might actually cover that.
No concerns supporting the legislation from me.
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