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Bipartisan Bill Aims to Extend Disaster Relief Funding Deadline for States

Marc Brousseau by Marc Brousseau
August 5, 2025
in Business ☆ Finance
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In a unified effort to support communities recovering from natural disasters, U.S. Senators Alex Padilla (D-Calif.) and John Cornyn (R-Texas) have introduced the Transportation Emergency Relief Extension Act. This proposed legislation aims to extend the obligation deadline for utilizing Federal Highway Administration (FHWA) Emergency Relief funds from two years to six years. In the House of Representatives, Representatives John Garamendi (D-Calif.-08) and Doug LaMalfa (R-Calif.-01) are sponsoring companion legislation.

The extension of the FHWA Emergency Relief funds’ deadline seeks to accommodate the often lengthy bureaucratic processes that delay the initiation of vital infrastructure projects following disasters. Many communities depend on the FHWA’s Emergency Relief program to rebuild essential highways, roads, and bridges after such events.

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Currently, if funded projects are not underway by the end of the second fiscal year post-disaster, the Department of Transportation has the authority to rescind the funding. This creates pressure on states, as regulatory limitations and bureaucratic hurdles can hinder timely project initiation. The new legislation proposes to alleviate this pressure by allowing states a longer period to commence their rebuilding efforts.

Senator Padilla emphasized the need for reform, stating, “After devastating natural disasters like the California fires in January, states turn to the Federal Highway Administration’s Emergency Relief program to rebuild critical infrastructure. Our bill would afford states the time they need to complete these projects responsibly and efficiently, without the looming threat of losing federal support when it matters most.”

Senator Cornyn also voiced his support, remarking, “Texas is no stranger to natural disasters, and the Emergency Federal Relief Program has provided essential aid for our state to repair roadways damaged by severe weather. I am proud to introduce legislation that will provide states with additional flexibility in spending these funds.”

Representative Garamendi highlighted the increasing frequency of disasters, noting, “Americans across the country are facing increasingly frequent and severe floods and wildfires due to the climate crisis. Our bill would ensure state and local governments have adequate time to fully utilize federal funds awarded to repair roads damaged by disasters.”

Caltrans Director Dina El-Tawansy expressed optimism about the bill’s potential impact, stating, “Over the past five years, Caltrans and our local partners have faced growing challenges securing timely approvals for Emergency Relief time extensions. We’re encouraged by the momentum to modernize the FHWA’s ER Manual—an essential step toward providing states with the clarity and consistency needed to safeguard these critical funds.”

California State Association of Counties (CSAC) President Jeff Griffiths added, “Counties need all the help we can get to rebuild after disasters, and we welcome this commonsense bill with open arms. It’ll give us the flexibility we need to get projects built without losing critical federal funds.”

This initiative builds on previous efforts by the lawmakers, who urged then-Secretary of Transportation Pete Buttigieg to provide states with more flexibility in managing relief funds for transportation repairs in the aftermath of natural disasters.

The Transportation Emergency Relief Extension Act has garnered endorsements from several organizations, including Caltrans, the National Association of Counties (NACo), the National League of Cities (NLC), the California State Association of Counties (CSAC), and the National Association of Construction Engineers (NACE).

With increasing natural disasters posing challenges nationwide, this bipartisan legislation aims to ensure that communities can effectively rebuild and recover, thereby strengthening the resilience of the country’s infrastructure.

Full text of the bill is available here.

Marc Brousseau

Marc Brousseau

Deputy Editor

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