Disaster Relief Act

AAA

DEFINITION of 'Disaster Relief Act'

A United States federal law passed in 1974 that laid down the process through which the president's declaration of a disaster triggers a system of financial and other assistance by the federal government to state and local governments. It was amended in 1988 by the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which activates federal assistance through the Federal Emergency Management Agency (FEMA).

INVESTOPEDIA EXPLAINS 'Disaster Relief Act'

Disasters often cause loss of life and property, loss of income and human suffering; they also disrupt the normal functioning of governments and communities. The Disaster Relief Act provided an orderly and continuing means of assistance by the federal government to state and local governments, which enables them to fulfill their responsibilities to alleviate the suffering and damage caused by disasters such as floods, earthquakes and hurricanes.

It should be noted that activation of disaster relief is not restricted only to natural disasters such as Hurricane Katrina in 2005, and other major disasters. It may also be triggered in the event of any emergency, as determined by the U.S. president, in which federal assistance is needed to supplement state and local governments to save lives and protect property, or to lessen or avert the threat of a catastrophe in any part of the U.S.

RELATED TERMS
  1. Tax Relief

    Any program or incentive that reduces the amount of tax owed ...
  2. Catastrophe Insurance

    Insurance to protect businesses and residences against natural ...
  3. Catastrophe Bond - CAT

    A high-yield debt instrument that is usually insurance linked ...
  4. Catastrophe Call

    A call provision in municipal bonds that allows for the early ...
  5. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
  6. Liquefaction

    A loss of stability and strength in water-saturated soil due ...
Related Articles
  1. Protecting Your Financial Documents ...
    Home & Auto

    Protecting Your Financial Documents ...

  2. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  3. 7 Signs Of A Charitable Disaster Scam
    Personal Finance

    7 Signs Of A Charitable Disaster Scam

  4. A Disaster-Protection Plan For Your ...
    Fundamental Analysis

    A Disaster-Protection Plan For Your ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center