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. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
  5. Catastrophe Call

    A call provision in municipal bonds that allows for the early ...
  6. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
Related Articles
  1. Home & Auto

    Protecting Your Financial Documents From Disaster

    Organizing and updating your records regularly can save you a lot of grief in a time of crisis.
  2. Home & Auto

    Preparing Your Finances From Natural Disasters

    Use these easy tips to protect your financial interests from natural disasters.
  3. Personal Finance

    7 Signs Of A Charitable Disaster Scam

    Make sure you know where your donations are going, and where they can be most effective.
  4. Fundamental Analysis

    A Disaster-Protection Plan For Your Portfolio

    If you can't predict the future, you'll need to plan ahead to protect your assets from the impact of major world events.
  5. Retirement

    Tax Relief For Katrina Victims

    Find out if you qualify for the assistance offered to hurricane survivors by the U.S. government.
  6. Technical Indicators

    Why is the 200 Simple Moving Average (SMA) so common for traders and analysts?

    Learn about the 200 simple moving average (SMA), how it is utilized by traders and analysts, and why it is considered to represent major support or resistance.
  7. Trading Strategies

    How do I build a profitable strategy when spotting a Three White Soldiers pattern?

    Learn a simple trading strategy implemented based on the bullish market reversal signal given by the three white soldiers candlestick pattern.
  8. Trading Strategies

    How are Three Black Crows patterns interpreted by analysts and traders?

    Understand the basics of the three black crows pattern and how analysts and traders interpret this bearish reversal pattern when creating a trading strategy.
  9. Trading Strategies

    How effective is creating trade entries after spotting a Symmetrical Triangle pattern?

    Understand the symmetrical triangle pattern and the likely success of the most common breakout trading strategy implemented when the pattern is identified.
  10. Forex Strategies

    How do I implement a forex strategy when spotting a Rounding Bottom Pattern?

    Understand the key factors to implementing a profitable forex trading strategy based on recognizing the formation of a rounding bottom pattern.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center