This bill amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to establish a new program for reimbursing interest payments. Specifically, it directs the Federal Emergency Management Agency (FEMA) Administrator to provide financial assistance to local governments and electric cooperatives for "qualifying interest" on loans. These loans must have at least 90 percent of their proceeds used for activities eligible for assistance under the Stafford Act after the loan's disbursement. "Qualifying interest" is defined as the lesser of the actual interest paid or the interest that would have been paid at the prime rate published by the Federal Reserve. Importantly, the bill makes qualifying interest incurred by these entities up to nine years preceding the date of enactment eligible for this financial assistance. Furthermore, it mandates that FEMA establish alternative procedures within 30 days for states to obtain reimbursement for qualifying loan interest on all projects pending obligation as of the bill's enactment, with reimbursement to states expected within one year.