Public Law 119-73 (01/23/2026)

42 U.S.C. § 5205

Disaster grant closeout procedures

(a)

Statute of limitations

(1)

In general

section 3716(e) of title 31Notwithstanding and except as provided in paragraph (2), no administrative action to recover any payment made to a State or local government for disaster or emergency assistance under this chapter shall be initiated in any forum after the date that is 3 years after the date of transmission of the final expenditure report for project completion as certified by the grantee.

(2)

Fraud exception

The limitation under paragraph (1) shall apply unless there is evidence of civil or criminal fraud.

(b)

Rebuttal of presumption of record maintenance

(1)

In general

In any dispute arising under this section after the date that is 3 years after the date of transmission of the final expenditure report for project completion as certified by the grantee, there shall be a presumption that accounting records were maintained that adequately identify the source and application of funds provided for financially assisted activities.

(2)

Affirmative evidence

The presumption described in paragraph (1) may be rebutted only on production of affirmative evidence that the State or local government did not maintain documentation described in that paragraph.

(3)

Inability to produce documentation

The inability of the Federal, State, or local government to produce source documentation supporting expenditure reports later than 3 years after the date of transmission of the final expenditure report for project completion as certified by the grantee shall not constitute evidence to rebut the presumption described in paragraph (1).

(4)

Right of access

The period during which the Federal, State, or local government has the right to access source documentation shall not be limited to the required 3-year retention period referred to in paragraph (3), but shall last as long as the records are maintained.

(c)

Binding nature of grant requirements

A State or local government shall not be liable for reimbursement or any other penalty for any payment made under this chapter if—
(1)
the payment was authorized by an approved agreement specifying the costs;
(2)
the costs were reasonable; and
(3)
the purpose of the grant was accomplished.
(d)

Facilitating closeout

(1)

Incentives

The Administrator of the Federal Emergency Management Agency may develop incentives and penalties that encourage State, local, or Indian tribal governments to close out expenditures and activities on a timely basis related to disaster or emergency assistance.

(2)

Agency requirements

The Federal Emergency Management Agency shall, consistent with applicable regulations and required procedures, meet its responsibilities to improve closeout practices and reduce the time to close disaster program awards.

Pub. L. 93–288, title VII, § 705Pub. L. 106–390, title III, § 304114 Stat. 1573Pub. L. 115–254, div. D132 Stat. 3451(, as added , , ; amended , §§ 1216(c)(1), 1221(a), , , 3453.)

Editorial Notes

References in Text

Pub. L. 93–28888 Stat. 143section 5121 of this titleThis chapter, referred to in subsecs. (a)(1) and (c), was in the original “this Act”, meaning , , . For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 115–254, § 1216(c)(1)(A)section 3716(e) of title 312018—Subsec. (a)(1). , substituted “Notwithstanding and except” for “Except” and “report for project completion as certified by the grantee” for “report for the disaster or emergency”.

Pub. L. 115–254, § 1216(c)(1)(B)(i)Subsec. (b)(1). , substituted “report for project completion as certified by the grantee” for “report for the disaster or emergency”.

Pub. L. 115–254, § 1216(c)(1)(B)(ii)Subsec. (b)(3). , inserted “for project completion as certified by the grantee” after “final expenditure report”.

Pub. L. 115–254, § 1221(a)Subsec. (d). , added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–254Pub. L. 115–254section 1202 of Pub. L. 115–254section 5121 of this titleAmendment by applicable to each major disaster and emergency declared by the President on or after , and authorities provided under div. D of applicable to each major disaster and emergency declared by the President on or after , except as otherwise provided, see , set out as a note under .

Regulations

Pub. L. 115–254, div. D, § 1221(b)132 Stat. 3454

“The Administrator [of the Federal Emergency Management Agency] shall issue regulations to implement the amendment made by this section [amending this section].”
, , , provided that: