To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide for the authority to reimburse local governments for interest expenses, and for other purposes.

“431. Reimbursement of interest payments related to public assistance

“(a) In general—The President may provide financial assistance to a local government as reimbursement for qualifying interest.

“(b) Definitions—In this section, the following definitions apply:

“(1) Qualifying interest—The term qualifying interest means, with respect to a qualifying loan, the lesser of—

“(A) the actual interest paid to a lender for such qualifying loan; and

“(B) the interest that would have been paid to a lender if such qualifying loan had an interest rate of 2 times the discount window primary credit interest rate most recently published on the Federal Reserve Statistical Release on selected interest rates (daily or weekly) (commonly referred to as the “H.15 release” or the “Federal funds rate”).”.

“(2) Qualifying loan—The term qualifying loan means a loan—

“(A) obtained by a local government; and

“(B) of which not less than 90 percent of the proceeds are used to fund activities for which such local government receives assistance under this Act after the date on which such loan is disbursed.”