WASHINGTON, January the 21st — The Congressional Research Service published the following Insight White Paper on Federal Emergency Management Agency Risk Mitigation Assistance (#IN11187) on January 19, 2023through Diane P. Hornflood insurance and emergency management:
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Federal Emergency Management Agency (FEMA) Risk Mitigation Assistance
Introduction
The majority of funding in United States for pre- and post-disaster mitigation comes from Federal Emergency Management Agency (FEMA), which defines mitigation as “any sustained action to reduce or eliminate long-term risks to people and property from natural hazards and their effects”. Mitigation actions have a long-term impact, as opposed to actions associated with immediate preparedness, response and recovery activities. A widely cited study of the Multiple Risk Mitigation Board found that society saves $6 for every dollar spent on mitigation funded by large federal mitigation grants.
FEMA administers three risk mitigation grant programs and one loan program, collectively referred to as Risk Mitigation Assistance (HMA):
* Risk Mitigation Grant Program (HMGP);
* Flood Mitigation Assistance (FMA) Grant Scheme;
* Build resilient infrastructure and Communities (BRIC), which replaced the Pre-Disaster Mitigation (PDM) grant program; and
* Safeguarding Tomorrow’s Revolving Fund (STRLF) Program.
Eligible applicants for grant programs include state and local governments and federally recognized tribes. Some non-profit organizations may apply for HMGP. Individuals cannot apply for HMA funding, but can benefit from a community application. Entities eligible for the STRLF are States, District of Colombia, Porto Ricoand federally recognized tribes with major disaster declarations between January 1, 2016 and January 1, 2021. Applicants to all four programs must have FEMA-approved risk mitigation plans.
The Risk Mitigation Grant Program (HMGP)
The Risk Mitigation Grant Program is authorized by Section 404 of the Stafford Act (42 USC Sec.5170c). HMGP assistance is triggered by a Presidential Major Disaster Declaration or a Fire Management Assistance Grant (FMAG) and is funded through the Disaster Relief Fund (DRF). The primary objective of the HMGP program is to ensure that post-disaster reconstruction provides opportunities to include mitigation measures to reduce loss of life and property from future disasters.
Funding for HMGP is awarded in the form of a state grant formula based on the total estimated federal assistance per Major Disaster Declaration or FMAG, subject to a sliding scale (42 USC Sec.5170c( a) and 44 CFR Sec.206.432(b)). HMGP funding normally does not exceed 15% of the total estimated federal grant amount, but states with an approved State Enhanced Mitigation Plan in effect prior to the disaster are eligible for HMGP funding of 20% of this amount. HMGP funds can be used to pay up to 75% of eligible activity costs. States may use HMGP funds for any eligible activity for any type of hazard and are not limited to the hazard or area for which the grant was awarded.
Building Resilient Infrastructure and Communities (BRIC)
Pre-disaster mitigation (PDM) funding is authorized by Section 203 of the Stafford Act (42 USC Sec.5133), with the intent of reducing the overall risk to people and structures from future hazardous events, while reducing reliance on federal funding to respond to future disasters. Pre-disaster mitigation is funded by the DRF. Until FY2020, the amount available for the PDM was allocated each year to a separate account and the PDM grants were awarded competitively.
Changes to Pre-Disaster Mitigation Funding
Pre-disaster mitigation funding changed significantly with the passage of the Disaster Recovery Reform Act of 2018 (DRRA, Division D of PL 115-254). DRRA has authorized a new funding source called National Public Infrastructure Pre-Disaster Mitigation Fund (NPIPDM) For each major disaster declaration, the President may deduct from the DRF an amount equal to 6% of the total estimated amount of grants to be awarded pursuant to the following sections of the Stafford Act:
* 403 (essential support)
* 406 (repair, restoration and replacement of damaged installations)
* 407 (debris removal)
* 408 (federal personal and household assistance)
* 410 (unemployment assistance)
* 416 (crisis counseling assistance and training)
* 428 (alternative public assistance program procedures)
Funds from this 6% set aside go to NPIPDM. It is possible to significantly increase funding after a year with many major disasters, but funding could also be lower in a year with few disasters. From December 31, 2022there was $3.995 billion in the 6% DRF gel.
FEMA introduced a new program, the Build resilient infrastructure and Community Grants Program (BRIC) in fiscal year 2020. Federal funding is generally available for up to 75% of eligible activity costs; however, small, poor communities may be eligible for up to 90% federal cost sharing. Investment in infrastructure and Employment Act (IIJA) $1 billion for the BRIC, with $200 million in each of the 2022-2026 financial years. This funding is in addition to the 6% reserve.
A total of $2.295 billion is available in FY2022, in three categories:
1. State/Territory Allocation: $112 million
2. Tribal fallowing: $50 million
3. National competition: $2.133 billion
FEMA provides that $500 million will be available for the BRICs in fiscal year 2023.
The Flood Mitigation Assistance (FMA) Grant Program
To reduce the overall risk of flooding, FEMA also operates a Flood Mitigation Assistance Grant Program funded by revenues collected by the National Flood Insurance Program (NFIP), with the aim of mitigating flood-damaged properties insured by the NFIP to reduce or eliminate NFIP claims. FMA funding is only available to communities that participate in the NFIP. Generally, federal funding is available up to 75% of eligible costs. However, FEMA may contribute up to 90% for recurring loss property and up to 100% for severe recurring loss property.
The IIJA has appropriated $3.5 billion for FMA, with $700 million for each of fiscal years 2022 to 2026, and a total of $800 million is available in FY2022 for FMA.
Saving Tomorrow Revolving Loan Fund (STRLF) Program
A new program called the Safeguarding Tomorrow Revolving Loan Fund Program (STRLF) was created by the STORM Act, which amended the Stafford Act to allow FEMA enter into agreements with eligible entities to establish low-interest revolving loan funds for risk mitigation. The STORM law authorized the appropriation of $100 million annually for fiscal years 2022 and 2023 to provide grants to capitalize new revolving loan funds. The IIJA has appropriated $500 million for STRLF, with $100 million for each of the years 2022 to 2026. FEMA published the first notice of funding opportunity for the STRLF program on December 20, 2022with $50 million available for fiscal year 2023.
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The white paper is published on: https://crsreports.congress.gov/product/pdf/IN/IN11187
