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. Hurricane Deductible

    An amount a homeowner must pay before insurance will cover the ...
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 ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center