Disaster Resiliency and Coverage Act of 2025
Key claim: The Disaster Resiliency and Coverage Act of 2025 (HR1105) would establish FEMA grants of up to $10,000 for residential hazard mitigation in designated disaster-risk areas, a 30% income tax credit for such expenditures, and tax exclusions for state/local residential mitigation payments and certain federal emergency agricultural assistance.
Abstract
(HR1105 · 119th Congress) Disaster Resiliency and Coverage Act of 2025 This bill establishes a grant program for certain hazard mitigation measures for homes in disaster risk areas and provides a tax credit for up to 30% of expenditures on such mitigation measures. It also excludes from taxable income certain payments for residential hazard mitigation and federal emergency agricultural assistance. The bill requires the Federal Emergency Management Agency (FEMA) to award grants to states and Indian tribal governments for specified hazard mitigation activities on residential properties at a high risk of experiencing a major disaster. FEMA must establish and periodically update disaster risk areas in which homes are eligible for the grant funding. Individual residential households, subject to certain income limitations, may receive up to $10,000 (adjusted for inflation) for eligible hazard mitigation activities, such as reinforcing a roof, installing a flood control system, or reducing flammable vegetation near the home. The bill also provides an income tax credit to individuals and businesses for up to 30% of expenditures on the specified residential mitigation activities eligible under the grant program. Additionally, under current law, payments for disaster relief and payments under federal hazard mitigation programs are excluded from taxable income. The bill specifically excludes from taxable income payments to an individual for hazard mitigation improvements to their residence under any program established or administered by a state or local government. The bill also excludes certain federal emergency and disaster agricultural assistance from taxable income as a type of disaster relief payment. Latest action (2025-02-06): Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
Why this matters
For farmers in disaster-prone regions, excluding federal emergency agricultural assistance from taxable income would increase the net value of disaster payments and simplify post-disaster tax planning, without changing underlying eligibility for USDA disaster programs. Consumers and food prices are unlikely to see direct effects, though improved farm-level recovery could marginally stabilize supply after covered disasters. The provision is one piece of a broader disaster-resilience package still at the introduction stage.