This bill changes how the federal government funds disaster prevention projects before disasters strike. Right now, the government gives money to help communities prepare for and reduce damage from natural disasters like hurricanes, floods, and earthquakes. This bill reorganizes how that money gets distributed and who decides which projects get funded.

Instead of having states compete for funding on a case-by-case basis, the bill creates a formula that automatically gives each state a share of the money based on three factors: equal distribution to all states, population size, and how vulnerable a state is to natural hazards. This means smaller or less populated states won't be left out, and states facing serious disaster risks get extra consideration. The bill also guarantees that Native American tribes receive at least $75 million in funding. When states receive this money, they must pass at least half of it down to local governments that are actually doing the mitigation projects.

The bill also removes a restriction that prevented communities from getting disaster recovery funding if they'd already received prevention funding for the same project. This allows communities to use both types of federal assistance to better protect themselves and recover more completely when disasters do occur.