This bill amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to establish an alternative procedure for funding certain small disasters. It allows a State Governor or Indian tribal government to request a lump sum payment for a "covered small disaster" instead of participating in the traditional Public Assistance Program. A "covered small disaster" is defined as a major disaster or emergency with estimated Public Assistance Program damage not exceeding 125 percent of the State's per capita indicator. The lump sum payment would be equal to 80 percent of the total estimated cost of assistance under the Public Assistance Program for that disaster. States or tribal governments choosing this option cannot receive additional Public Assistance Program aid for the same incident, and the payment is generally final. To be eligible, they must have an approved administrative plan and agree on the payment amount with FEMA within 90 days. This approach grants greater flexibility in how funds are used for recovery, requiring compliance with applicable environmental, historic preservation, and civil rights laws.