Proposed bill would force charities to use disaster funds in two years

A disaster relief table at a center.

Tennessee state senator Mark Pody (R) has proposed a bill that would give charities in the state two year to distribute disaster relief funds they raise, WTVF in Nashville reports. 

According to the proposed legislation, after the deadline passes, unused funds would be transferred to a fund managed by the Tennessee Emergency Management Agency and directed to future disaster relief efforts in the state. Pody argues that, after a year or two, survivors of disasters have gone on with their lives, gotten their houses fixed, or found new jobs.

The bill could have negative repercussions, however, for organizations like the Nashville-based Community Foundation of Middle Tennessee (CFMT). In an interview with WTVF, the organization said it distributes funds for disasters, but not all at once. The funds are not merely for immediate disaster relief but also for long-term recovery. CFMT still has disaster funds that it hasn’t distributed from the 2020 tornadoes that struck the area.

“Usually, local dollars are not touched until [funding from the Federal Emergency Management Agency] and insurance has been exhausted, and that doesn’t happen overnight,” said CFMT president Hal Cato, who added that the process involves more than simply rebuilding structures or systems, it includes addressing the mental, physical, and financial needs that survivors have. “The reason that is, is we want those without those resources to have what they need. So, it’s all about ensuring that there’s equity and fairness in the process and doing it a thoughtful way and not in an immediate knee-jerk response.”

(Photo credit: Getty Images/SDI Productions)