42 U.S.C. § 5189 — Simplified procedure

The President may use a simplified estimate-based process for certain small Federal disaster-assistance projects. The original threshold is $1,000,000, unless the Administrator^* establishes a different threshold under subsection (b), and the applicable threshold is adjusted each year for inflation measured by the specified Consumer Price Index.

(a) In general. If the Federal estimate of the cost of—

(1) repairing, restoring, rebuilding, or replacing a damaged or destroyed public facility or private nonprofit facility^* under section 5172;

(2) emergency assistance under section 5170b or 5192; or

(3) debris removed under section 5173,

is below $1,000,000, or below the threshold established under subsection (b), the President may, after an application by the State^* or local government^* or by the private nonprofit facility’s owner^* or operator, provide the contribution under the applicable section based on that Federal estimate. The $1,000,000 threshold, or the subsection (b) threshold, must be adjusted each year to reflect changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor.

(b) Threshold.

(1) Report. Within one year after January 29, 2013, the President, acting through the Administrator of the Federal Emergency Management Agency, called the “Administrator” in this section, must—

(A) complete an analysis of whether raising the subsection (a) eligibility threshold is appropriate. The analysis must consider cost-effectiveness, recovery speed, grantee capacity, past performance, and accountability measures; and

(B) send the House Committee on Transportation and Infrastructure and the Senate Committee on Homeland Security and Governmental Affairs a report about that analysis.

(2) Amount. After the Administrator sends that report, the President must direct the Administrator to—

(A) immediately set an eligibility threshold for this section at an appropriate amount, without following chapter 5 of title 5; and

(B) adjust that threshold every year for changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor.

(3) Review and report. No later than three years after the Administrator sets a threshold under paragraph (2), and every three years after that, the President, acting through the Administrator, must review the threshold. The President must send the two committees a report on the review, including any recommendations developed from it.

This section does not define “Federal estimate,” “private nonprofit facility,” “threshold,” “cost-effectiveness,” “grantee,” or “accountability measures.”