YourVoice.Now Summary
Your MoneyCorporate BenefitsHigh-Earner BenefitsTargeted & Unrelated ProvisionsTransparency & AccountabilityEnvironmentUp to $10,000 in grants plus a 30% tax credit to strengthen homes in high-risk disaster areas.
Your Money
The federal government would fund states and tribal governments to pay for work on at-risk homes. The cap rises each year with inflation and cannot exceed what the work actually costs.
A new tax credit would cover 30% of the cost of the same upgrades, on property you own or rent. It applies to work paid for after the bill becomes law.
Some states already pay homeowners to strengthen a roof or clear brush. Those payments would no longer count as income on your federal taxes, for tax years starting in 2026.
The cutoff uses the income on your previous year's tax return. States would also weigh your income and whether your home sits in a federal disaster resilience zone.
Corporate Benefits
FORTIFIED and Wildfire Prepared Home are ratings from an insurance-funded research group. Meeting either would qualify a home for grants and the tax credit, and FEMA would weigh that group's standards when writing its own.
The bill says it cannot force insurers to change how they price or sell policies, and cannot override state insurance rules. A stronger home may or may not earn you a lower rate.
High-Earner Benefits
Households that earn too much for a grant could still claim 30% of the same work as a tax credit. The credit sets no dollar ceiling, so bigger projects bring bigger credits.
Targeted & Unrelated Provisions
A home-hardening bill also exempts federal farm disaster aid from income tax, including crop and livestock loss programs. That change starts with tax years beginning in 2026.
Transparency & Accountability
Each participating state or tribe would have to post public guidance suggesting discounts, rebates, or price credits for stronger homes. Insurers would not have to follow it.
Grant plans would have to assess how available and affordable home insurance is in each risk area. No state has to gather data it does not already collect, and the findings need not be made public.
Environment
Federal money could pay to clear flammable plants around a home, trim tree branches, and cut fire breaks. Nature-based flood defenses, such as living shorelines, would also qualify.
More about this bill
Homeowners in high-risk disaster areas could get up to $10,000 to make their homes stronger. The federal government would send the money to states and tribal governments, which would run the grants. It could pay for tougher roofs, window and door protection, flood vents, safe rooms, and brush clearing. FEMA would set the standards the work must meet. The $10,000 cap would rise each year with inflation. You could not get a grant if you earned over $250,000, or $500,000 as a couple. The grant would not be taxed. A new tax credit would cover 30% of the cost of the same work. Unlike the grants, it sets no income limit and no dollar limit. It only helps if you owe federal income tax. Businesses could claim it too, for property they own or rent. Money from a state home-hardening program would stop being taxed, starting with the 2026 tax year. Six kinds of federal farm disaster aid would also become tax free. The bill could not make any insurer lower your premium. It says states keep control of their own insurance rules. States would have to post guidance suggesting discounts for stronger homes, but insurers would choose whether to offer them. The bill sets no deadline to start the program and names no dollar amount for it. Congress would have to decide that funding later.
Congressional Summary
Disaster Resiliency and Coverage Act of 2025This bill establishes a grant program for certain hazard mitigation measures for homes in disaster risk areas and provides a tax credit for up to 30% of expenditures on such mitigation measures. It also excludes from taxable income certain payments for residential hazard mitigation and federal emergency agricultural assistance. The bill requires the Federal Emergency Management Agency (FEMA) to award grants to states and Indian tribal governments for specified hazard mitigation activities on residential properties at a high risk of experiencing a major disaster. FEMA must establish and periodically update disaster risk areas in which homes are eligible for the grant funding. Individual residential households, subject to certain income limitations, may receive up to $10,000 (adjusted for inflation) for eligible hazard mitigation activities, such as reinforcing a roof, installing a flood control system, or reducing flammable vegetation near the home. The bill also provides an income tax credit to individuals and businesses for up to 30% of expenditures on the specified residential mitigation activities eligible under the grant program.Additionally, under current law, payments for disaster relief and payments under federal hazard mitigation programs are excluded from taxable income. The bill specifically excludes from taxable income payments to an individual for hazard mitigation improvements to their residence under any program established or administered by a state or local government. The bill also excludes certain federal emergency and disaster agricultural assistance from taxable income as a type of disaster relief payment.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-06
- Date Added
- 2026-05-12
- Source
- Congress.gov →
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