Preserving UASI Capability Gains Act of 2011

Preserving Urban Area Security Initiative Capability Gains Act of 2011 or the Preserving UASI Capability Gains Act of 2011 - Amends the Homeland Security Act of 2002 to direct the Administrator of the Federal Emergency Management Agency (FEMA) to establish a competitive grant program to make funding available for preservation of homeland security capabilities achieved by high-risk urban areas that received Urban Area Security Initiative (UASI) funding in FY2009 or FY2010 but were removed from the program thereafter.

Directs the Administrator to give priority to grant applications that best: (1) preserve capabilities needed to prevent, protect against, mitigate, respond to, and recover from the threats and hazards that pose the greatest risk to the United States; (2) preserve core capabilities developed through previous UASI grant allocations; (3) align with strategies and principles of the National Preparedness Goal, including the promotion of national preparedness; and (4) support capabilities that enhance regional catastrophic planning that could be used nationally through mutual aid agreements.

Prohibits any one applicant from receiving more than 7% of the total amount authorized for such grant program.