The Disaster Resiliency and Coverage Act of 2025 would direct the President to establish a new federal program providing grants to states and tribal governments for pre-disaster mitigation activities on individual residential properties at risk of damage by major disasters. The program — a new Section 207 of the Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. § 5131 et seq.) — would require the President to identify eligible disaster areas with type, likelihood, and severity descriptions for each natural hazard, and to review them at least every five years using current scientific standards. States and tribes seeking grants would have to submit plans describing risk areas, eligible mitigation activities (such as structural hardening, defensible-space work, and biomass removal), and contractor management procedures. The bill cross-references the Cooperative Forestry Assistance Act (16 U.S.C. § 2201) and the Biomass Crop Assistance Program (7 U.S.C. § 9081) for wildfire-mitigation-related activities. Democratic Rep. Mike Thompson of California leads a 42-member bipartisan group of co-sponsors, drawing heavily from disaster-prone districts in California and along the Eastern Seaboard.
Average Household Impact
- FEMA pre-disaster mitigation grants for households — New federal program providing state and tribal grants for mitigation work on individual residential properties in high-risk areas
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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