Lawmakers in the Senate and House recently introduced legislation that would reimburse local governments and electric cooperatives for interest expenses incurred on loans taken out to cover costs that are to be covered by disaster assistance payments from the Federal Emergency Management Agency.
Last week, Senators Marco Rubio (R-FL) and Rick Scott (R-FL) re-introduced the FEMA Loan Interest Payment Relief Act (S.1180) in the Senate, while Reps. Neal Dunn (R-FL), Darren Soto (D-FL), and Garrett Graves (R-LA) on April 18 introduced companion legislation (H.R. 2672) in the House.
The bills would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The amount of interest to be reimbursed is capped at the lesser of the amount of interest paid or the prime rate.
The American Public Power Association strongly supports the proposed legislation. Similar legislation introduced last year failed to advance.
