This legislation, titled the Sovereign States Emergency Management Act, mandates the abolishment of the Federal Emergency Management Agency (FEMA) two years following its enactment. Upon its abolishment, all functions previously performed by FEMA and its personnel will be transferred to the President, and any unobligated funds will be redirected to the general Treasury to support a new disaster relief program. The bill establishes a new Disaster Relief Block Grant Program , to be administered by the Secretary of the Treasury, providing direct grants to states for natural disaster and emergency relief. These grants are intended to support a range of activities including disaster preparedness training and equipment acquisition response and recovery operations mitigation projects to reduce future risks . States may use up to 5 percent of their allocated funds for administrative costs. Grant funds will be allocated to each state based on a formula developed by the Secretary of the Treasury, which must consider factors such as population size , historical disaster frequency and severity over the preceding 20 years, geographic risk factors , and economic need as determined by per capita income. To receive funds, states must annually submit an emergency management plan for approval, detailing how funds will be used, documenting coordination with local and Tribal authorities, and outlining measurable goals. Furthermore, states are required to submit annual reports detailing the use of funds, outcomes achieved, and compliance with their emergency management plans. The Secretary of the Treasury is also mandated to conduct annual audits of the program and report findings to Congress, ensuring accountability and preventing duplication of benefits with other federal assistance. The program is set to terminate four years after the allocation formula rule is issued.