State-Managed Disaster Relief Act

This bill allows states and tribal governments to request a lump-sum payment of 80% of estimated disaster costs (instead of standard federal aid) for "covered small disasters" defined as incidents with damages under 125% of a state's per capita indicator. States must choose this option annually, agree on the payment amount within 90 days, and cannot later seek additional funds through the standard Public Assistance Program. Funds must address recovery needs while complying with environmental, historic preservation, and civil rights laws. This directly affects state and tribal governments managing smaller-scale disasters, streamlining their access to upfront recovery resources.