FEMA Loan Interest Payment Relief Act

Interest Expense Reimbursement: The bill allows the President, through the FEMA Administrator, to provide financial assistance to local governments or electric cooperatives to reimburse them for "qualifying interest" (Section 2(a)).

Relief for Recent and Past Debt: Financial assistance can be applied to qualifying interest incurred in the 9 years preceding the date of enactment of this Act (Section 2(b)(1)).

Support for Critical Infrastructure: Reimbursement is available for "qualifying loans," which are loans where at least 90 percent of the proceeds fund activities for which the local government or electric cooperative receives assistance under the Act (Section 2(b)(2)(B)(ii)).

Streamlined Procedures for States: The bill requires the establishment of alternative procedures for States to obtain reimbursement for qualifying loan interest for projects pending obligation as of the date of enactment (Section 2(c)(1)).

Funding Restrictions: Only amounts appropriated on or after the date of enactment of this Act can be made available to carry out the amendment (Section 2(b)(2)).

Cap on Interest Reimbursement: The amount of "qualifying interest" reimbursed is limited to the lesser of the actual interest paid or the interest that would have been paid if the loan had an interest rate equal to the most recent prime rate published on the Federal Reserve Statistical Release (Section 2(a)(b)(1)).