Urban Area Security Initiative Modernization Act of 2011 - Amends the Homeland Security Act of 2002 to modify the Urban Area Security Initiative (UASI) to include within the initial assessment of the relative threat, vulnerability, and consequences from acts of terrorism faced by each eligible metropolitan area, consideration of each area's past performance, and each area's potential, to contribute to a reduction or mitigation of the relative threat, vulnerability, and consequences from acts of terrorism faced either within such area or nationally.
Directs the Administrator of the Federal Emergency Management Agency (FEMA) to consider such past performance in allocating homeland security grant funds among states and high-risk urban areas.