WASHINGTON, DC – Today, Congressman Neal Dunn (Florida-02) introduced the FEMA Loan Interest Payment Relief Act, a bill that would provide financial assistance to local governments and electric cooperatives by reimbursing interest payments on loans used for disaster recovery activities.

“Communities impacted by natural disasters are often left with staggering financial burdens while waiting for federal reimbursements on their disaster loans,” said Congressman Dunn. “Municipal governments and electric coops should not have to face undue financial burdens for the sluggish response from FEMA. This bill ensures that our communities are reimbursed for the interest on loans they need to make a full recovery. By lifting this financial strain, we are empowering communities to focus on what truly matters after disaster strikes – rebuilding and recovery.”

Currently, local governments and electric cooperatives take out loans to pay for disaster recovery efforts while waiting for disaster assistance from FEMA. Unfortunately, FEMA is often slow to provide assistance to these communities, forcing municipal governments to shoulder the financial burden of interest on their loans. Congressman Dunn’s bill would make the federal government financially responsible for the interest accrued on these loans. The bill applies retroactively to loans taken within nine years prior to enactment, addressing ongoing challenges for communities still recovering from past disasters.

Read the full text of the bill here.