The National Resilience and Recovery Fund Act proposes to establish a dedicated trust fund within the Treasury to bolster federal disaster preparedness and recovery efforts. This fund aims to provide a stable and substantial financial resource for critical programs administered by the Federal Emergency Management Agency (FEMA). Its primary objective is to enhance the nation's ability to mitigate hazards and build resilient infrastructure against future disasters.

The fund would be financed through several new and amended excise taxes on the oil and gas industry. These include a new 13 percent tax on the removal price of crude oil and natural gas produced from the Outer Continental Shelf in the Gulf of Mexico, allowing for a credit for federal royalties paid. Additionally, the bill introduces a new 10-cent per barrel "National Resilience and Recovery Fund financing rate" to the existing environmental tax on crude oil and imported petroleum products.

A significant funding mechanism is a new 50 percent excise tax on the windfall profits of large crude oil producers and importers. This tax applies when the average price of Brent crude oil exceeds a 2015-2019 baseline, adjusted for inflation, and targets entities extracting or importing over 300,000 barrels per day. The legislation also clarifies the definition of "crude oil" for excise tax purposes to explicitly include substances like tar sands and oil shale, and grants regulatory authority to include other fuel feedstocks.

Amounts in the National Resilience and Recovery Fund would be made available, subject to appropriation, to FEMA for several key programs. These include the Hazard Mitigation Grant Program, the Building Resilient Infrastructure and Communities (BRIC) grant program, the Safeguarding Tomorrow Revolving Loan Fund Program, and the Flood Mitigation Assistance program. These programs are designed to help communities reduce risks from natural hazards and recover more effectively from disasters.