The "Helene Small Business Recovery Act" allows the President to waive certain disaster relief duplication rules for states, individuals, or businesses impacted by major disasters or emergencies in 2023 and 2024, without income threshold limitations.
Thom Tillis
Senator
NC
The "Helene Small Business Recovery Act" allows the President to waive certain restrictions on receiving multiple forms of disaster relief for businesses and individuals impacted by major disasters or emergencies declared in 2023 and 2024. The President can waive duplication of benefit rules under the Stafford Act if it's in the public interest, without income-based restrictions. The President must decide on waiver requests within 45 days. All federal assistance is allowed if it covers losses from a major disaster or emergency.
Disaster Aid Shake-Up: New Bill Lets President Waive 'Duplication' Rule for 2023-2024 Events
This bill, the 'Helene Small Business Recovery Act,' tackles a frustrating issue for disaster survivors: getting penalized for receiving multiple types of federal aid. It allows the President, if a state's Governor requests it, to waive the 'duplication of benefits' rule found in Section 312(a) of the Stafford Act for major disasters or emergencies declared in 2023 or 2024. Essentially, this rule normally stops people or businesses from getting federal money from different sources (like FEMA and an SBA loan) if it covers the same disaster-related loss. This waiver aims to prevent situations where aid recipients are later asked to pay money back because they received overlapping assistance.
How the Waiver Works (and Doesn't)
Here's the process: A Governor asks the President for a waiver for their state, specific people, or businesses hit by a disaster. The President then has 45 days to say yes or no. The decision hinges on whether the waiver is in the 'public interest' and won't encourage 'waste, fraud, or abuse.' Factors like cost-effectiveness, fairness ('equity'), and FEMA's advice can be considered. Importantly, the bill explicitly states that income level cannot be used to deny someone eligibility for this waiver. It also clarifies that disaster loans won't be considered a 'duplication' if all the federal aid received is actually used to cover disaster losses, aligning with Section 312(c) of the Stafford Act.
Real-World Impact: Flexibility vs. Oversight
For someone rebuilding after a flood or fire in 2023 or 2024, this could mean keeping different types of federal aid without fearing a clawback, potentially speeding up recovery. Imagine a small shop owner getting an SBA loan for inventory and a FEMA grant for building repairs – this bill could allow them to keep both, if a waiver is granted. However, the power rests heavily on the President's discretion. Terms like 'public interest' and 'equity' aren't strictly defined, leaving room for interpretation. While aimed at helping, this flexibility needs careful application to ensure it doesn't inadvertently lead to the waste or unfair distribution the original rule sought to prevent. It's a temporary measure focused only on recent disasters, offering potential relief but relying significantly on executive judgment.