Don’t Penalize Victims Act

Don’t Penalize Victims Act This bill enables persons receiving funds from a federal disaster assistance program to also receive funds for that same purpose from any other source except for another federal program or insurance. Under current law, federal agencies providing financial assistance for losses resulting from a major disaster or emergency are prohibited from allowing recipients to receive other funds for that same purpose from any other source. Persons seeking federal disaster assistance must report the availability or receipt of duplicative funds and federal agencies will reduce the amount of disaster assistance accordingly to prevent a duplication of benefits. The bill narrows the duplication restriction to apply only to funds from other federal programs or insurance, so federal agencies providing disaster assistance may allow recipients to also receive funds for that same purpose from any other sources (e.g., charitable gifts, legal claims).

Source: Congressional Research Service (CRS).