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Washington, D.C. — U.S. Senators Marco Rubio (R-FL) and Rick Scott (R-FL) introduced the FEMA Loan Interest Payment Relief Act, which would require FEMA to reimburse local governments for interest payments on disaster-related loans. Congressman Neal Dunn (R-FL) introduced companion legislation in the U.S. House of Representatives.
In March 2020, Rubio and Scott introduced the Fairness in Disaster Relief Act, which would have authorized FEMA to reimburse local governments for disaster-related loans. On June 1, 2020, FEMA released new guidance that clarified that interest payments on disaster loans may be eligible for reimbursement. However, FEMA has not issued interest reimbursements to municipalities and other eligible entities across Florida, and the guidance does not establish guidelines on how to apply to receive interest on loans. The FEMA Loan Interest Payment Relief Act would require FEMA to make these payments.
“Hurricanes and other natural disasters have caused catastrophic destruction throughout Florida and disrupted the lives of countless Americans,” Rubio said. “Local governments, electric co-ops, and other entities work incredibly hard to respond to crisis situations. In doing so, they face serious financial hardships, which become increasingly onerous as FEMA delays reimbursements and interest payments pile up. This legislation would significantly reduce the burden of interest payments of FEMA loans to the hardest hit communities.”
“In Florida, we know just how suddenly severe weather can develop and threaten our communities,” Scott said. “Throughout my time as Governor of Florida, I saw firsthand the devastation and destruction massive storms can cause to families, communities and businesses. I will always do everything I can to help families and businesses recover quickly after natural disasters, and the FEMA Loan Interest Payment Relief Act will expand the resources available to local governments to help with recovery efforts.”
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