Federal disaster mitigation grants and tax credits for homeowners in high-risk zones.

What it does

This bill creates a federal grant program for homeowners in disaster-prone areas to fund pre-disaster mitigation improvements (roof reinforcement, flood barriers, fire-resistant materials, etc.), capped at $10,000 per household. It also provides tax breaks: grants and state mitigation payments are excluded from taxable income, and homeowners get a 30% federal tax credit for mitigation spending. The program targets households earning under $250,000 ($500,000 joint) and requires states to assess insurance availability and affordability in high-risk zones.

Why we flagged it

The bill's core mechanism is a federal grant program paired with tax incentives to reduce homeowner disaster risk. It is a public-safety and affordability measure, not a deregulation or carve-out.

• Section 4 adds agricultural disaster assistance (crop insurance, farm programs) to tax-excluded disaster relief, unrelated to household mitigation.

What the text implies

• Insurance industry consultation (subsection d) and advisory committee (subsection j) give private insurers and reinsurers formal input into what mitigation activities qualify for federal funding, potentially steering grants toward improvements that reduce insurer payouts rather than homeowner need.
• Tax credit (Section 5) applies to all real property owners, not just households under the income cap, creating a broader tax benefit for higher-income property owners and commercial real estate that is not subject to the grant program's income restrictions.
• State-based catastrophe loss mitigation programs (Section 3) are made tax-exempt without federal oversight, allowing states to design parallel programs with minimal federal visibility or consistency.
• The 30% tax credit for mitigation spending may incentivize homeowners to undertake improvements regardless of actual risk profile, potentially subsidizing unnecessary hardening in lower-risk areas.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary homeowners in disaster-prone areas gain direct financial assistance (grants + tax credits) to reduce property damage risk and insurance costs. The income cap ($250k/$500k) targets middle-class households. The program is funded federally and administered through states, with no apparent cost-shifting to other citizens.

Who stands to gain

• homeowners in disaster-prone areas (direct grants and tax credits)
• insurance companies and reinsurers (reduced claims exposure from hardened homes)
• property owners claiming the 30% tax credit (including commercial real estate)

Named in the bill

Federal Emergency Management Agency (FEMA), Federal Insurance Office, State Insurance Commissioners, Insurance Institute for Business and Home Safety, International Code Council, National Storm Shelter Association, Internal Revenue Service, States and Indian tribal governments

Where it stands

63 cosponsors: 58 Democrats, 5 Republicans.

• Feb 6, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 6, 2025 — Referred to House Committee on Transportation and Infrastructure and House Committee on Ways and Means · Congress.gov: “Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

13 lobbying clients named this bill on 22 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $23,890,762 in lobbying spend. A filing names 25 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 94% of bills with at least one filing.

Mike Thompson, the sponsor, reported $1,915,886 in PAC receipts in the 2026 cycle.

• National Association of Realtors — $14,580,000 on 1 filing
• American Property Casualty Insurance Association — $3,540,000 on 2 filings
• National Association of Home Builders — $2,150,000 on 2 filings
• Reinsurance Assn of America — $1,100,000 on 3 filings
• Allstate Insurance Company — $1,050,000 on 2 filings

Lobbying Disclosure Act filings through Jul 23, 2026. A filing shows who paid to lobby on a bill it names, not what changed.