Memo to Members

Bipartisan, Comprehensive FEMA Reform Bill Being Developed in House of Representatives

May 12, 2025

In response to increasing chaos and uncertainty at FEMA, a group of House members released draft text for a sweeping bill to overhaul the agency. The bill signifies an attempt by Congress to create a feasible alternative for the agency’s future. NLIHC and its Disaster Housing Recovery Coalition (DHRC) of more than 900 local, state, and national organizations provided initial reform recommendations prior to the bill’s release – several of which have been included in this draft text

The draft bill, announced in a press release on May 8, was created by House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) and Ranking Member Rick Larsen (D-WA). The bill has potential to become Congress’ primary vehicle to influence the future of FEMA. However, it is unclear how far the proposal could go in the current legislative environment. 

“We have clearly seen that FEMA is not working as it should for Americans who’ve been impacted by disasters. Congress has passed FEMA reforms over the years, but it simply hasn’t been enough,” said Chairman Graves, in a press release announcing the release of the discussion draft. “It makes commonsense reforms to help victims and communities recover faster and to ensure better coordination among agencies involved in emergency preparedness, response, and recovery.” The bill also strips out the red tape that slows down recoveries, it makes disaster programs more accountable to the taxpayer, and it ensures that FEMA treats all victims fairly.

“FEMA is the last line of defense for families impacted by increasingly frequent and severe natural disasters,” Ranking Member Larsen said in the same press release. “Republican and Democrats on this Committee agree that it is an important agency in need of reform. That’s why I’m proud to partner with my counterpart, Sam Graves, to release draft legislation giving FEMA the tools it needs to simplify its programs and provide quicker relief to disaster-impacted communities.”

The draft text includes proposals that would:

  • Restore FEMA as an independent agency, reporting directly to the president as a cabinet-level agency.
  • Make it easier for individuals without a fixed address, like individuals experiencing homelessness, to access post-disaster housing assistance.
  • Lengthen the amount of time FEMA can assist disaster-impacted households.
  • Create a unified disaster assistance application for all federal disaster assistance programs.
  • Direct FEMA to create clear and understandable notices regarding program eligibility.
  • Removes penalties for disaster survivors who utilize crowdfunding sites like GoFundMe for disaster expenses. 

Several of these proposals have been major policy objectives for the DHRC. NLIHC staff and DHRC members are currently analyzing the bill and will provide direct feedback to Transportation and Infrastructure Committee staff on the final version of the bill.