Wildfire Bill Mandates 75% Federal Cost Share, Allowing Reimbursement for Pre-Staged Emergency Gear

The Wildfire Recovery Act is focused on shifting the financial burden of fighting major fires, ensuring that state and local governments get more reliable federal help, and faster. Essentially, this legislation mandates that the federal government must cover at least 75 percent of the eligible costs for fire management assistance whenever new funding is appropriated by Congress (SEC. 2).

This bill also requires the Federal Emergency Management Agency (FEMA) to streamline its rules so that local governments can get reimbursed for moving their own equipment—like fire engines, bulldozers, or supply trailers—before a major disaster is officially declared (SEC. 4). If you’re a county emergency manager, this means you don’t have to wait for the official disaster declaration to start moving resources into a high-risk area, making a proactive response much more financially feasible.

The New Minimum: Guaranteed Federal Backup

For communities on the front lines of wildfire season, the 75 percent minimum federal cost share is a massive deal. Previously, the federal share could fluctuate, leaving states and counties to scramble for a larger portion of the costs. This new rule sets a floor, guaranteeing that for every dollar spent on eligible fire management, the state or local government is only responsible for 25 cents.

However, there’s a key detail: this minimum cost share only applies to money that Congress sets aside after the bill is signed into law (SEC. 2). It won't retroactively change the cost-sharing agreements for funds already allocated, so don't expect a refund check for last year's fire season.

Getting Paid to Plan Ahead

One of the biggest practical changes comes from updating how FEMA handles pre-disaster spending. Currently, getting reimbursed for emergency costs often requires an official federal disaster declaration. The new policy mandates that FEMA change its rules to allow state, local, and Tribal governments to be reimbursed for moving their own “domestic assets” (equipment and resources) into position in anticipation of a declared emergency (SEC. 4).

Think of a small town near a forest that knows a major wind event is coming. Under the old system, they might hesitate to spend money moving their equipment closer to the expected danger zone because they weren't sure if they'd get reimbursed. This change removes that financial risk, encouraging faster, more proactive staging of resources, which can be critical in saving time and property when the fire actually hits.

Clear Rules for More Help

Finally, the Act addresses the need for clear standards when a disaster is financially devastating. It requires FEMA to complete a formal rulemaking process within three years to establish clear criteria for when the President can increase the federal cost share above the minimum 75 percent (SEC. 3).

Crucially, these new criteria must include a specific way to measure the financial harm a fire causes to the state or local government. This means the decision to give a state 90 percent federal coverage, for instance, won't be arbitrary; it will be based on measurable financial benchmarks that prove the fire response is truly crippling local budgets. This move aims to bring greater transparency and predictability to the process of securing maximum federal aid.