H.R. 3177: To require the Administrator of the Federal Emergency Management Agency to ensure that cost estimates, acquisition of proper materials, and any other activity related to certain projects under the Robert T. Stafford Disaster Relief and Emergency Assistance Act are performed by professionals licensed in the relevant State, and for other purposes.

H.R. 3177 is a narrow but powerful rewrite of how FEMA handles certain disaster recovery projects. It applies to projects eligible for assistance under section 406 or section 428 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, cited at 42 U.S.C. 5172 and 42 U.S.C. 5189f. For those projects, FEMA would have to use “appropriately licensed professionals” for any “covered activity,” including preparing cost estimates and purchasing proper materials, equipment, vehicles, and other necessary items.

The bill defines an “appropriately licensed professional” very specifically. The person must either be employed by FEMA or contracted by FEMA, a State, or a local governmental entity, and must be licensed in the State where the project will be carried out. The license must be in a relevant field such as engineer, architect, builder, tradesperson, or another profession related to the covered activity. The bill also says any FEMA employee directly assisting with management of a project eligible under section 406 or 428 must meet that licensed-professional standard.

The biggest operational change is that FEMA’s Administrator would lose a lot of freedom to second-guess local rebuilding choices. The Administrator could not disapprove a plan, rebuilding proposal, material suggestion, or direct purchase of materials without the direct consent of an appropriately licensed professional. FEMA would also have to approve any purchase suggested by an appropriately licensed professional for a covered project. And the Administrator could not reject, rescind, or stall plans, projects, or materials requested or purchased by such a professional unless “fraud is evident and traceable.”

The bill also shifts responsibility to the States. Each State would be responsible for hiring an appropriately licensed professional to develop the scope of work for a covered activity. FEMA likewise could not reject or hinder the process of entering into a contract with an appropriately licensed professional if that process is suggested by a State or local government. In practice, that could speed rebuilding where FEMA and local officials disagree, but it could also reduce FEMA’s ability to control costs or apply national consistency rules unless it can show clear, traceable fraud.