The "Disaster Victims Protection Act" mandates that the Governor allocate federal and State disaster aid to municipalities based on the extent of catastrophic physical damage each municipality has sustained. This bill aims to address the inequities observed in the distribution of Community Development Block Grant-Disaster Recovery (CDBG-DR) funds following Hurricane Sandy, where some municipalities received disproportionate aid relative to the damage they experienced. The act emphasizes that when the Governor has discretion in allocating these funds, priority should be given to municipalities in direct proportion to the damage incurred, ensuring that those most affected receive timely assistance.

The bill highlights the need for a fair and just allocation of disaster relief funds, particularly in light of the significant financial strain faced by the hardest-hit municipalities. By establishing this proportional allocation methodology, the act seeks to prioritize the needs of residents and businesses in severely damaged areas over other economic development projects, thereby promoting equity in disaster recovery efforts. The act is set to take effect immediately upon passage.