WASHINGTON — Bipartisan legislation introduced in the House and Senate in March 2026 would create a federal framework for interstate contractor licensing reciprocity during federally declared disasters, addressing a longstanding barrier that prevents out-of-state contractors from quickly deploying to disaster-affected areas.
Under current law, contractors who travel from their home state to work in a disaster-affected state must comply with the licensing requirements of the destination state, which may require obtaining a separate license, passing additional examinations, or waiting for reciprocity agreements to be processed. In the immediate aftermath of a major disaster, these requirements can delay the deployment of needed restoration capacity by days or weeks.
The Disaster Contractor Reciprocity Act of 2026 would create a temporary federal license that allows any contractor holding a valid license in their home state to work in a federally declared disaster area for up to 180 days without obtaining a separate state license. The temporary license would be subject to the same insurance and bonding requirements as the home state license.
The legislation has been endorsed by the Restoration Industry Association, the Associated General Contractors of America, and the National Association of Home Builders, as well as several state emergency management agencies.
Opposition has come primarily from state licensing boards, which have expressed concern that the legislation would undermine state consumer protection standards and create enforcement challenges.
The bill has been referred to the House Energy and Commerce Committee and the Senate Commerce Committee. Industry advocates are cautiously optimistic about its prospects, noting that the bipartisan support and broad industry endorsement give it a better chance than previous similar proposals.
