Last month, the Senate Banking, Housing, and Urban Affairs Committee unanimously approved the bipartisan ROAD to Housing Act — the most comprehensive housing authorization effort in 17 years. Led by Chair Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), the bill consolidates dozens of previously introduced measures into the most comprehensive housing package since the 1990s. Enterprise is proud the legislation contains a number of our long-standing policy priorities, including the Reforming Disaster Recovery Act (RDRA).

As originally introduced, the RDRA would permanently authorize the Community Development Block Grant – Disaster Recovery (CDBG-DR) program, which provides long-term, flexible funding, primarily for low- and moderate-income communities recovering from major disasters. Since 1993, Congress has appropriated over $100 billion in CDBG-DR funds across nearly 150 disasters. But without formal authorization, HUD must issue new rules each time, leading to delays and inconsistency. 

The RDRA in the ROAD to Housing package preserves the original bill’s intent and substance with only minor adjustments needed to integrate it into a broader housing reform effort. Its inclusion marks a critical step toward creating a permanent and accountable federal disaster recovery system.

Closely Mirrors Original

Originally introduced as S.1686 by Senators Brian Schatz (D-Hawaii) and Susan Collins (R-Maine), RDRA would establish a Forward-Looking Disaster Recovery Fund to expedite recovery by allowing immediate deployment of resources, eliminating the need to wait for separate congressional appropriations after each disaster.

The ROAD to Housing Act text (section 503) closely mirrors the original, with one key change: reducing the mitigation set-aside cap from 30% to 18%. The mitigation set-aside refers to the portion of CDBG-DR funds that must be used for activities that reduce future disaster risk, such as elevating homes, floodproofing infrastructure, or restoring natural buffers. Other core elements — funding mechanism, definitions, formula allocations, grantee requirements, oversight, and protections for vulnerable populations — remain largely consistent.

Key Provisions of the Reforming Disaster Recovery Act:

• Codification of CDBG-DR in Law: Formally authorizes the CDBG-DR program, allowing HUD to issue permanent regulations and apply consistent rules across disasters. This eliminates the need for ad hoc Federal Register Notices and reduces confusion, inefficiency, and administrative burden for states and communities.
• Permanent Disaster Recovery Fund: Establishes a forward-facing reserve fund housed in the U.S. Treasury to ensure faster, more reliable disaster recovery funding. The fund can receive appropriations, transfers, and recaptured funds — allowing HUD to respond swiftly without waiting for new supplemental aid.
• Congressional Oversight: The legislation preserves strong fiscal discipline by requiring all CDBG-DR funding to go through the appropriations process, with Congress determining the timing and amount of funding and HUD administering it under clear statutory rules and regulations.
• Faster Recovery: Unlike today, when Congress must pass a new law after each disaster to authorize funding, this bill establishes permanent authority so that once Congress appropriates money, HUD can quickly distribute it to communities. This reduces the long delays that currently stall recovery efforts, while still maintaining Congressional oversight and spending limits.
• Mitigation Investments: Includes a set-aside for projects that reduce future disaster risk, such as resilient infrastructure and hazard-resistant housing.

Moving Forward

Enterprise applauds the Senate Banking Committee’s leadership and bipartisan collaboration in advancing this legislation. We will continue working closely with Congress to ensure these important reforms are passed and implemented effectively.

For a deeper look at how long-term disaster recovery works across the country, read our previous blog post: A Critical Resource for Long-Term Disaster Recovery Across America.