FEMA Procurement Bill Triples Simplified Spending Limit to $3 Million, Allowing Faster Disaster Recovery Contracting

The Streamlining FEMA Procurement Procedures Act of 2025 is aiming to speed up how local governments hire help after a disaster. Right now, getting FEMA funding for rebuilding is notoriously slow. This bill tackles that problem by making two big changes to the rules governing disaster recovery contracts funded under the Stafford Act (specifically Section 406).

The $3 Million Fast Lane: Simplified Procurement

The first major change is purely about dollars and cents: it raises the spending limit for simplified procurement procedures from $1 million to $3 million. Think of simplified procurement as the fast lane for government buying. When a contract is under this threshold, the local government doesn't have to go through the full, often months-long, competitive bidding process. For everyday people, this means that mid-sized rebuilding projects—say, fixing a local bridge or repairing a large municipal building damaged in a flood—could potentially start much faster because the local government can award the contract without the extensive paperwork required for larger bids. However, raising this ceiling means that up to $3 million in taxpayer money will now be spent with less rigorous oversight than before, which raises the risk of overpaying or poor contract selection if local accountability isn't strong.

Construction Manager at Risk: A New Way to Hire

The second change allows local governments to use the Construction Manager at Risk (CMAR) method for all parts of a disaster recovery project. CMAR is a procurement method where the contractor is brought in early to help with design and planning, and then guarantees the final price (the 'at risk' part). Crucially, this bill expands CMAR use to include professional advice and technical help, not just the physical construction. The selection process for CMAR is often based on qualifications, experience, and speed—not just the lowest bid. This is a huge win for speed, as it allows local officials to hire the contractor they think is best qualified to handle a complex, urgent project, rather than being forced to take the cheapest bid, which can sometimes lead to delays and change orders later.

The Trade-Off: Speed vs. Scrutiny

For a small business owner whose store was wiped out, the promise of faster infrastructure repair is huge. Getting the roads and utilities fixed quickly means they can get back to work sooner. But here’s the policy catch: both CMAR and the higher simplified spending threshold prioritize speed and flexibility over the traditional competitive bidding process. When you move away from the lowest bid, you open the door to potentially higher costs. If you’re a taxpayer, you’re betting that the increased speed and better quality that CMAR promises will outweigh the potential for higher expenses that come from less competitive pressure. FEMA has 180 days to issue the new rules for CMAR, and how strict those rules are will determine whether this change is a genuine streamlining effort or just an opportunity for less transparent contracting.