Drought Emergency Relief Act

Drought Emergency Relief Act -- Title I: Amendments to the Disaster Relief Act of 1974 -- Extends the provisions of the Disaster Relief Act of 1974 to cover any emergency caused by drought. Authorizes Federal agencies to provide emergency range seeding, install irrigation pipes, and establish comprehensive employment and manpower programs in any major disaster or drought emergency.

Authorizes the President to provide temporary assistance in the form of mortgage or rental payments to or on behalf of individuals who, as a result of financial hardship caused by drought, face any mortgage or lien foreclosure, lease termination, or cancellation of any contract of sale.

Title II: Amendments to the Public Works and Economic Development Policy Act of 1965 -- Extends the provisions of the Public Works and Economic Development Act of 1965 as amended respecting economic recovery for disaster areas to cover economic recovery from drought emergencies.

Title III: Miscellaneous Provisions -- Authorizes assistance for current expenditures to schools located at drought emergency area, and amends the Small Business and Consolidated Farm and Rural Development Acts to authorize the making and insuring of small business and farm loans for persons suffering damages caused by drought. Limits the interest rate of small business loans made by the Government and farm loans made or insured by the Government to one percent per year.