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The State-Managed Disaster Relief Act establishes an alternative procedure for federal disaster assistance that allows states and Indian tribal governments to request a lump sum payment equal to 80 percent of estimated Public Assistance Program costs for small disasters, instead of receiving traditional itemized federal assistance. States and tribes choosing this option would have flexibility in how they deploy the funds to address disaster recovery, provided the funds comply with environmental, historic preservation, and civil rights laws. The lump sum payment would be final and not adjusted based on actual costs, except in cases of unforeseen circumstances, and states must reach agreement with FEMA on the payment amount within 90 days or revert to standard procedures.
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