FEMA’s Public Assistance Program: A Primer and Considerations for Congress
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FEMA’s Public Assistance Program: A Primer
and Considerations for Congress
April 1, 2021
Congressional Research Service
https://crsreports.congress.gov
R46749
SUMMARY
FEMA’s Public Assistance Program: A Primer
and Considerations for Congress
The Federal Emergency Management Agency’s (FEMA) Public Assistance (PA)
Program is central to contemporary U.S. federal emergency and disaster relief. Over the
past 10 years, PA has been authorized in every county, parish, and municipality in the
United States. The reconstruction of entire infrastructure systems following Hurricane
Katrina, mass evacuations ahead of California wildfires, and emergency medical care
during the Coronavirus Disease 2019 (COVID-19) pandemic were all funded through
PA.
R46749
April 1, 2021
Erica A. Lee
Analyst in Emergency
Management and Disaster
Recovery
Administered by FEMA, the PA Program assists state, tribal, territorial, and local governments and certain
nonprofits with both urgent response and long-term recovery work following a presidential declaration under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act, as amended, P.L. 93-288). The
Stafford Act provides PA for response and recovery through a federalist model intended to supplement—not
supplant—nonfederal resources. FEMA and the state, tribe, or territory that received a declaration jointly
administer PA, and the costs are shared between the federal government and nonfederal entities receiving
assistance.
Congress has addressed the scope, timeliness, and cost of PA in recent legislation and hearings, often in the wake
of severe disasters, The Sandy Recovery Improvement Act of 2013 (Division B of P.L. 113-2;) and the Disaster
Recovery Reform Act of 2018 (Division D of P.L. 115-254) included modifications to PA authorities that may
expedite the completion of PA projects, reduce PA spending, and promote work that mitigates the risk of future
damage. Still, as the frequency and severity of PA-eligible disasters mounted in recent years, so did the utilization
and cost of PA.
This report summarizes PA Program authorities and
requirements. It also presents considerations relevant
to the following policy questions for Congress:
How, if at all, may Congress seek to respond
to recent PA spending increases?
How can the federal government effectively
oversee the PA Program while swiftly
assisting disaster-stricken communities?
How, if at all, may Congress promote
resilience through PA?
How will the federal government address
delays in PA project completion and
recovery?
FEMA’s Public Assistance Program Obligations
FY2000-FY2020 (billions)
Source: CRS analysis of data provided by FEMA Office of
Congressional and Legislative Affairs.
To promote the timely and cost effectiveexecution of PA projects, Congress recently authorized Alternative Procedures. Has the
implementation of Alternative Procedures met these goals?
How may Congress seek to address the potential strain of PA on local, state, and federal
workforce capacity, given the demands of grant management?
To what extent should FEMA exercise discretion in determining what costs are eligible for PA?
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FEMA’s Public Assistance Program: A Primer and Considerations for Congress
Contents
Introduction ..................................................................................................................................... 1
Scope and Structure of Report .................................................................................................. 1
Program Overview .......................................................................................................................... 2
Requesting, Authorizing, and Administering PA ...................................................................... 4
Requesting and Authorizing Public Assistance for Emergencies........................................ 4
Requesting and Authorizing Public Assistance for Major Disasters ................................... 5
PA Recipients and Applicants ............................................................................................. 8
Eligibility .................................................................................................................................. 9
Applicants ......................................................................................................................... 10
Facility .............................................................................................................................. 10
Work................................................................................................................................... 11
Costs.................................................................................................................................. 14
PA Requirements and Procedures............................................................................................ 15
Cost-Share ......................................................................................................................... 15
Insurance Requirements .................................................................................................... 16
Public Assistance Funding Procedures ............................................................................. 17
Building Standards ............................................................................................................ 22
Mitigation Activities ......................................................................................................... 23
PA Funding .................................................................................................................................... 24
DRF Obligations for PA .......................................................................................................... 24
Scale of PA Expenditures ........................................................................................................ 25
Trends in PA Expenditures ...................................................................................................... 27
Obligations by Category ................................................................................................... 27
Obligations by Hazard Type ............................................................................................. 27
Obligations by State .......................................................................................................... 29
Congressional Considerations ....................................................................................................... 29
Cost of PA Program ................................................................................................................. 30
Oversight Challenges .............................................................................................................. 33
Promoting Resilience Through PA .......................................................................................... 35
Project Execution Delays ........................................................................................................ 36
Strained Federal, State, and Local Workforce Capacity.......................................................... 38
Alternative Procedures ............................................................................................................ 41
Agency Discretion ................................................................................................................... 42
Concluding Observations .............................................................................................................. 44
Figures
Figure 1. Forms of Public Assistance Authorized Under Stafford Act Declarations ....................... 4
Figure 2. Stafford Act Declaration Request Process ....................................................................... 6
Figure 3. Structure of FEMA Public Assistance Program Administration ...................................... 9
Figure 4. FEMA’s PA Program Eligibility Pyramid ...................................................................... 10
Figure 5. Funding Scenarios for Large Projects Under Alternative and Standard Public
Assistance Procedures ................................................................................................................ 21
Figure 6. Disaster RF Obligations by Category, Fiscal Years 2000-2020 ..................................... 25
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FEMA’s Public Assistance Program: A Primer and Considerations for Congress
Figure 7. FEMA’s Public Assistance Program Obligations, Fiscal Years 2000-2020 ................... 25
Figure 8. FEMA’s Public Assistance Program Obligations by Category, Fiscal Years
2000-2020................................................................................................................................... 27
Figure 9. FEMA’s Public Assistance Program Obligations by Hazard, Fiscal Years 20002020 ............................................................................................................................................ 28
Figure 10. FEMA’s Public Assistance Program Obligations by State and Territory, Fiscal
Years 2000-2020......................................................................................................................... 29
Figure A-1. FEMA-reported PA Obligations for FY2020 by Incident .......................................... 46
Figure A-2. FEMA-reported PA Obligations including COVID-19, FY2000-2020 ..................... 47
Figure B-1. FEMA’s Public Assistance Reimbursement Process ................................................. 49
Tables
Table 1. Public Assistance Authorizing Statutes ............................................................................. 3
Table 2. FEMA’s Public Assistance Standard Procedures vs. Alternative Procedures ................. 20
Appendixes
Appendix A. Snapshot of PA for COVID-19................................................................................. 45
Appendix B. Public Assistance Reimbursement Process .............................................................. 48
Appendix C. Public Assistance Alternative Procedures Guidance Bibliography .......................... 52
Appendix D. List of Acronyms ..................................................................................................... 54
Contacts
Author Information........................................................................................................................ 54
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FEMA’s Public Assistance Program: A Primer and Considerations for Congress
Introduction
In terms of cost, scope, and application, Federal Emergency Management Agency’s (FEMA)
Public Assistance (PA) Program is arguably the most extensive general disaster relief program
active in the United States today. Over the past 10 years, Presidents have authorized PA for every
county in the United States. On average, PA accounts for the largest share of obligations from the
Disaster Relief Fund (DRF), and spending is increasing. PA obligations have increased in the past
three years, and reached a new high in FY2020 (see “PA Funding”).
Administered by the FEMA, PA is often the first federal assistance to be authorized and the last to
close out in a disaster-stricken community. Under the authorities of the Robert T. Stafford
Emergency Assistance and Disaster Relief Act (the Stafford Act, as amended, P.L. 93-288),1 the
President may authorize PA to provide a range of assistance through an emergency or major
disaster declaration. PA has funded mass evacuations ahead of California wildfires, emergency
medical care during the Coronavirus Disease 2019 (COVID-19) pandemic, and the reconstruction
of entire infrastructure systems damaged by Hurricane Katrina.2
The PA Program faces historic demands. At this moment in the 117th Congress, PA is authorized
in every locality in the United States to provide relief from the COVID-19 pandemic—an
unprecedented use of PA. Additionally, some jurisdictions have concurrent PA authorizations for
additional incidents, including 2020 flooding in the Midwest, the 2020 flooding and dam
breaches in Michigan, the December 2020 Nashville bombing, and early 2021 severe winter
storms in Texas, Oklahoma, and Louisiana.3 Over the past decade, Congress has revised key PA
authorities to address the complexity, growing cost, and expanding scope of the PA Program. This
report summarizes issues facing the 117th Congress during this period of extensive utilization of
the PA Program.
Scope and Structure of Report
This report includes three major sections:
The first part provides an overview of PA statutory authorities, rules, policies,
and administration.
The second part discusses the funding of the PA Program and describes trends in
historical DRF obligations for PA, including the growth in PA expenditures and
the breakdown of PA obligations by type of work, hazard, and geography.
The third part offers considerations for Congress regarding the PA Program.
Considerations include PA spending increases, oversight issues, and promoting
resilience.
This report additionally includes the following appendices:
1 42 U.S.C. §§5121 et seq.
2 FEMA, “Six Counties Receive Federal Help with Wildfire Debris Removal,” Sept. 5, 2020, https://www.fema.gov/
press-release/20201016/six-counties-receive-federal-help-wildfire-debris-removal; FEMA, “Mississippi Hurricane
Katrina: A Decade of Progress Through Partnerships,” https://www.fema.gov/media-library-data/143921527891927b976d9ae441db76490d3399bdfe16b/Hurricane-Katrina-10-Year-MS-Statewide.pdf; CRS Analysis of OpenFEMA,
“Public Assistance Funded Projects—Details,” as of August 2, 2020.
3 FEMA, “Declared Disasters,” https://www.fema.gov/disasters/disaster-declarations?
field_dv2_state_territory_tribal_value=All&field_year_value=All&field_dv2_declaration_type_value=All&
field_dv2_incident_type_target_id_selective=All.
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Appendix A includes a snapshot of PA deployed to respond to the COVID-19
pandemic.
Appendix B describes how FEMA delivers PA funds to disaster-stricken entities.
Appendix C provides a bibliography of guidance for PA Alternative Procedures,
a variation on the standard procedures FEMA uses to deliver PA.
Appendix D provides a list of acronyms referenced in the report.
Program Overview
The PA Program provides assistance to states, tribes, territories, local governments, and eligible
nonprofits—not businesses, individuals, or homeowners (many of whom are eligible for
assistance through other programs). PA is not automatically authorized for all incidents; it is only
authorized when the President declares an emergency or major disaster declaration under the
Stafford Act (see “Requesting, Authorizing, and Administering PA”).4
Like all Stafford Act assistance, PA is designed to supplement—not supplant—nonfederal
resources for emergency response and recovery. The federal government shares the cost of work
eligible for PA (see “Cost-Share”) with nonfederal entities receiving assistance. PA awards fund
the costs of response activities (referred to as PA emergency work), including debris removal and
emergency protective measures, or recovery (referred to as PA permanent work), meaning the
costs of restoring or replacing eligible disaster-damaged public and nonprofit facilities. The DRF
funds PA administration and awards along with other types of Stafford Act assistance.5
Terms
Within this report, the term “state” refers to states and territories. For purposes of the Stafford Act, “‘State’
means any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana Islands” (42 U.S.C. §5122(4)).
The term “tribes” refers to Indian tribal governments. Per the Stafford Act, “[t]he term ‘Indian tribal government’
means the governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, or community that
the Secretary of the Interior acknowledges to exist as an Indian tribe under the Federally Recognized Indian Tribe
List Act of 1994” (42 U.S.C. §5122(6)).
Generally, Stafford Act assistance is requested by the “governor” (i.e., “the chief executive of any State” (42 U.S.C.
§5122(5)), or the “chief executive” (i.e., “the person who is the Chief, Chairman, Governor, President, or similar
executive official of an Indian tribal government” (42 U.S.C. §5122(12)).
The term “Recipient” in this report refers to “an entity that receives a Federal award directly from a Federal
awarding agency to carry out an activity” and the term “Applicant” refers to entities that are responsible for PA
projects, per FEMA, Public Assistance Program and Policy Guide (PAPPG 2020), FP 104-009-2, effective June 1, p. 2122, https://www.fema.gov/media-library-data/1525468328389-4a038bbef9081cd7dfe7538e7751aa9c/
PAPPG_3.1_508_FINAL_5-4-2018.pdf (hereinafter FEMA, PAPPG 2020).
See, for example, Stafford Act Section 403(a); 42 U.S.C. § 5170b(a), which states that “[i]n any major disaster, the
President may” provide certain assistance, and, “Federal agencies may on the direction of the President, provide
assistance essential to meeting immediate threats to life and property resulting from a major disaster, as follows…” See
also 44 C.F.R. §206.240(b). For more information on declarations, see CRS Report R42702, Stafford Act Declarations
1953-2016: Trends, Analyses, and Implications for Congress, by Bruce R. Lindsay.
5 For more information on the Disaster Relief Fund, see CRS Report R45484, The Disaster Relief Fund: Overview and
Issues, by William L. Painter.
4
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“Nonfederal” describes resources, entities, or authorities exclusive of the federal governments. Some nonfederal
entities may apply for PA, becoming PA Applicants. This report refers to state, local, tribal, and territorial
governments as SLTTs.
PA is authorized by multiple sections of the Stafford Act (see Table 1).6 Recent statutory
revisions of PA include those enacted under the Sandy Recovery Improvement Act (SRIA,
Division B of P.L. 113-2; see “Alternative Procedures”)7 and the Disaster Recovery Reform Act
of 2018 (DRRA; Division D of P.L. 115-254) explicitly undertaken to reduce costs, increase the
flexibility of the program, and promote resilience in PA-funded work (see “Building Standards”
and “Promoting Resilience Through PA”).8
FEMA administers PA;9 agency rules governing the PA Program are promulgated in 44 C.F.R.
§206. The statutory and regulatory frameworks governing PA are further interpreted and detailed
in numerous FEMA guidance and policy documents describing program procedures and disasterspecific rules, among other items.10
Table 1. Public Assistance Authorizing Statutes
Stafford Act Section
Assistance Authorized
Section 407, 428, or 502
Emergency Work: Debris Removala
Section 402, 403, 418, 419, or 502c
Emergency Work: Emergency Protective Measuresa
Section 406 or Section 428
Permanent Work: Roads/Bridgesb
Section 406 or Section 428
Permanent Work: Water Control Facilitiesb
Section 406 or Section 428
Permanent Work: Buildings/Equipmentb
Section 406 or Section 428
Permanent Work: Utilitiesb
Section 406 or Section 428
Permanent Work: Parks, Recreational, and Other
Facilitiesb
Section 324
Management of Public Assistance and Hazard Mitigation
Assistance Grantsa
Source: FEMA, Public Assistance Program and Policy Guide, FP 104-009-2, effective June 1, 2020, pp. 17-18.
Notes:
6 The Stafford Act additionally authorizes the President to provide Individual Assistance (IA), which helps families and
individuals respond to post-disaster needs, and Hazard Mitigation Assistance, which helps communities execute
projects that may reduce the loss of life and property from future disasters. For more information, see CRS Report
R46014, FEMA Individual Assistance Programs: An Overview, by Elizabeth M. Webster; CRS Insight IN11187,
Federal Emergency Management Agency (FEMA) Hazard Mitigation Assistance, by Diane P. Horn.
7 The Sandy Recovery Improvement Act (SRIA), P.L. 113-2; Stafford Act Section 428. The Public Assistance Program
Alternative Procedures are codified at Section 1102 of SRIA; 42 U.S.C. §5189f.
8 See explanation of revised PA authorities in U.S. Congress, House Committee on Transportation and Infrastructure,
Disaster Recovery Reform Act, report to accompany H.R. 4460, 115th Cong., 2nd sess., H.Rept. 115-1098, part 1
(Washington, DC: GPO, 2018), pp. 15-16; see also U.S. Congress, Senate Committee on Homeland Security and
Governmental Affairs, Disaster Recovery Reform Act of 2018, report to accompany S. 3041, 115th Cong., 2nd sess.,
S.Rept. 115-446, (Washington, DC: GPO, 2018), pp. 2-4 and Section 1102 of SRIA; 42 U.S.C. §5189f(c).
9 Executive Order 12148.
10 See, for example, FEMA, “Policy, Guide, and Fact Sheets,” https://www.fema.gov/assistance/public/policyguidance-fact-sheets; FEMA, “Other Public Assistance Policies and Guidance,” https://www.fema.gov/assistance/
public/policy-guidance-fact-sheets/other.
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a.
b.
c.
This type of assistance may be made available if authorized pursuant to a presidential declaration of
emergency or major disaster.
This type of assistance may only be made available if authorized pursuant to a presidential declaration of
major disaster.
PA authorized under Sections 402, 418, and 419 refer to Direct Federal Assistance.
Requesting, Authorizing, and Administering PA
PA is generally available to an affected community only if authorized by a presidential declaration
of emergency or major disaster.11 PA emergency work may be authorized for both emergencies
and major disasters, while permanent work may only be authorized for major disasters, as
summarized in Figure 1.
Figure 1. Forms of Public Assistance Authorized Under Stafford Act Declarations
Sources: Developed by CRS based on 44 C.F.R. §206.204(c) and (d); and FEMA, Public Assistance Policy and
Program Guide, FP 104-009-2, effective June 1, 2020, p. 51.
Requesting and Authorizing Public Assistance for Emergencies
The Stafford Act defines emergencies broadly: emergencies may be any incident that requires
federal assistance to save lives; protect property as well as public health and safety; and lessen or
avert the threat of catastrophe.12 Therefore, a Stafford Act emergency declaration may be issued
before a hazard strikes—for example, when a hurricane is projected to make landfall—or after.13
PA emergency work is often the only type of federal assistance authorized for emergencies
declared under the Stafford Act.14
11 See authorities under Stafford Act Sections 402, 403, 407, 418, 419, and 502; 42 U.S.C. §§5170a-5170b, 5173, 5185-
5186, 5192. While PA emergency work is also available under Fire Management Assistance Grants (FMAGs), the
FMAG program is separate and distinct and administered separately. For more information on FMAGs, see CRS
Report R43738, Fire Management Assistance Grants: Frequently Asked Questions, by Bruce R. Lindsay and Katie
Hoover.
12 Stafford Act Section 102(1); 42 U.S.C. §5122(1).
13 Stafford Act Section 501; 42 U.S.C. §5191; 44 C.F.R. §206.35(a).
14 Other forms of Stafford Act assistance, including most forms of Individual Assistance and the Hazard Mitigation
Grant Program, are not available under Emergency Declarations. These programs are available through a major disaster
declaration under the Stafford Act. In very rare cares, emergency declarations may authorize the Individuals and
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Generally, a governor or tribal chief executive requests an emergency declaration after
determining that a hazard will exceed state or tribal capacity to respond. Governors and tribal
chief executives must describe the resources already deployed (including activation of emergency
plans) and describe the types of federal assistance required in their request.15 FEMA then
evaluates whether the incident’s “severity and magnitude” exceed the response capacity of
SLTTs, therefore warranting PA.16
Separately, the President may unilaterally declare an emergency for incidents involving federal
primary responsibility pursuant to Section 501(b) of the Stafford Act.17 It is rare, however, for the
President to issue a declaration absent a governor or chief executive’s request. Historical
invocations include incidents on federal property, for example, the attack on the Alfred P. Murrah
federal courthouse in Oklahoma City and the Explosion of the Space Shuttle Columbia.18 In 2020,
President Donald J. Trump declared a nationwide emergency for response to the COVID-19
pandemic under this authority—a declaration unprecedented in scope (see Appendix A).19
Requesting and Authorizing Public Assistance for Major Disasters
The Stafford Act requires that governors or tribal chief executives make a request for a major
disaster declaration; the President does not have authority to unilaterally issue such a
declaration.20 PA for a major disaster can authorize federal reconstruction for major losses, which
has totaled more than $10 billion for severe events like Hurricane Katrina, Superstorm Sandy, and
Hurricane Maria.21 To assess the request, FEMA conducts a Preliminary Damage Assessment
(PDA) jointly with state, local, tribal, and territorial officials (hereinafter SLTTs; see Figure 2).
PDAs estimate the potential costs of major response and recovery activities.22
Households Program. See FEMA, “How a Disaster Gets Declared,” https://www.fema.gov/disasters/how-declared.
15 44 C.F.R. §206.35(c).
16 44 C.F.R. §206.35.
17 Stafford Act Section 501(b); 42 U.S.C. §5191(b).
18 FEMA, “Notice: Oklahoma; Emergency and Related Determinations,” 60 Federal Register 22579, May 8, 1995;
FEMA, “Notice: Space Shuttle Columbia; Emergency and Related Determinations,” 68 Federal Register 9667,
February 28, 2003.
19 FEMA, “COVID-19 Emergency Declaration,” Release Number: HQ-20-017-FactSheet, March 13, 2020,
https://www.fema.gov/news-release/2020/03/13/covid-19-emergency-declaration. See also CRS Insight IN11251, The
Stafford Act Emergency Declaration for COVID-19, by Erica A. Lee, Bruce R. Lindsay, and Elizabeth M. Webster; and
CRS Report R46326, Stafford Act Declarations for COVID-19 FAQ, by Elizabeth M. Webster, Erica A. Lee, and
William L. Painter.
20 Stafford Act Section 401(a)-(b); 42 U.S.C. §5170(a)-(b).
21 FEMA, “Louisiana Hurricane Katrina (DR-1603-LA),” https://www.fema.gov/disaster/1603; FEMA, “New York
Hurricane Sandy (DR-4085-NY),” https://www.fema.gov/disaster/4085; FEMA, “Puerto Rico Hurricane Maria (DR4339-PR),” https://www.fema.gov/disaster/4339.
22 In practice, these estimates generally include the uninsured costs of emergency response and long-term
reconstruction work. FEMA, FEMA Preliminary Damage Assessment Guide, May 2020, https://www.fema.gov/sites/
default/files/2020-07/fema_preliminary-disaster-assessment_guide.pdf; CRS Report R44977, Preliminary Damage
Assessments for Major Disasters: Overview, Analysis, and Policy Observations, by Bruce R. Lindsay.
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Figure 2. Stafford Act Declaration Request Process
Source: Developed by CRS based on 44 C.F.R. §§206.31-206.48.
FEMA uses PDAs to analyze six factors established in agency regulations to assess a request for a
major disaster for states, as defined by the Stafford Act.23 For requests from tribal chief
executives, FEMA additionally considers factors including unique conditions (e.g., remote
location), demographics, and economic impact.24 FEMA then recommends a course of action to
the President.25 While no single factor is determinative, FEMA typically recommends the
authorization of PA only if the estimated cost exceeds specific thresholds across the jurisdiction.26
The factors are:
1. Estimated Cost of Assistance: FEMA determines whether estimated costs of
PA-eligible work across the jurisdiction exceed $1 million total across a state or
territory or $250,000 across a tribe.27 Additionally, for states and territories, costs
must meet or exceed annually adjusted per-capita thresholds across the county
23 44 C.F.R. §206.48.
24 For more information, see FEMA, Tribal Declarations Pilot Guidance, January 2017, pp. 34-36,
https://www.fema.gov/sites/default/files/2020-04/tribal-declaration-pilot-guidance.pdf.
25 44 C.F.R. §206.48(a).
26 These thresholds are called “per-capita indicators.” GAO, Federal Disaster Assistance; Improved Criteria Needed to
Assess a Jurisdiction’s Capability to Response and Recover on Its Own, GAO-12-838, September 2012, p. 24
(hereinafter GAO, Improved Criteria), https://www.gao.gov/assets/650/648162.pdf.
27 FEMA, “Tribal Declarations Pilot Guidance,” January 2017, https://www.fema.gov/sites/default/files/2020-04/tribaldeclaration-pilot-guidance.pdf.
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2.
3.
4.
5.
6.
and the state or territory in need.28 In FY2021, the per-capita threshold across a
state or territory requesting PA is $1.55, and across a county is $3.89.29
Localized Impacts: FEMA may recommend authorizing PA in cases of severe,
concentrated damages, even when all cost of assistance thresholds are not met.30
For Indian tribal governments, FEMA considers additional factors, including the
economic impact of the disaster and demographic factors of the affected
population.
Insurance Coverage in Force: FEMA reduces the estimated cost of PA based on
the actual insurance coverage for PA-eligible work. If a facility is uninsured in
violation of previous PA award requirements or Stafford Act insurance
requirements (see “Insurance Requirements”), then FEMA will reduce the
estimated cost of PA with respect to insurance requirements.31
Hazard Mitigation: FEMA considers how mitigation measures may have
reduced the damages. To encourage community resilience efforts, FEMA may
authorize PA even when estimated damages do not meet the per capita thresholds
if mitigation may have reduced the cumulative losses.
Recent Multiple Disasters: FEMA considers recent disasters within the disasteraffected jurisdiction to better assess the need for assistance. For example, if a
state has exhausted its capacity in response to disasters in the previous 12-24
months, FEMA may consider authorizing assistance even if cost-of-assistance
thresholds are not all met.
Programs of Other Federal Assistance: FEMA considers whether disasterrelated needs may be more appropriately met through other federal assistance.
Section 1239 of the Disaster Recovery Reform Act of 2018 (Division D of P.L. 115-254) required
FEMA to review and update these factors, particularly the cost of assistance.32 In December 2020,
FEMA published a notice of proposed rulemaking pursuant to this provision that would increase
the cost-of-assistance thresholds to account for inflation and income within a jurisdiction.33 This
rulemaking followed several recommendations from the U.S. Government Accountability Office
(GAO) that FEMA increase the thresholds or identify a more accurate metric to measure state and
28 Annually adjusted statewide per capita indicators are available at FEMA, “Per Capita Impact Indicator and Project
Thresholds,” https://www.fema.gov/assistance/public/applicants/per-capita-impact-indicator.
29 Ibid.
30 FEMA explains “This is particularly true where critical facilities (such as major roadways, bridges, public buildings,
etc.) are affected or where localized per capita impacts are extremely high. For example, localized damages may be in
the tens or even hundreds of dollars per capita, even though the overall statewide per capita impact is low.” FEMA,
“Disaster Declaration Criteria Fact Sheet,” December 2019, provided by FEMA Office of Congressional and
Legislative Affairs to CRS.
31 For more information, see FEMA, FEMA Preliminary Damage Assessment Guide, May 2020, pp. 63-64,
https://www.fema.gov/sites/default/files/2020-07/fema_preliminary-disaster-assessment_guide.pdf.
32 See CRS Report R45819, The Disaster Recovery Reform Act of 2018 (DRRA): A Summary of Selected Statutory
Provisions, coordinated by Elizabeth M. Webster and Bruce R. Lindsay.
33 FEMA, “Notice: Cost of Assistance Estimates in the Disaster Declaration Process for the Public Assistance
Program,” notice of proposed rulemaking, 85 Federal Register 80719, December 14, 2020 (hereinafter FEMA,
“Proposed Rule: Cost of Assistance Estimates”), https://www.federalregister.gov/documents/2020/12/14/2020-27094/
cost-of-assistance-estimates-in-the-disaster-declaration-process-for-the-public-assistance-program; FEMA, Disaster
Recovery Reform Act (DRRA): Annual Report, October 2019, p. 7, https://www.fema.gov/media-library/assets/
documents/184634.
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local fiscal capacity to respond and recover.34 If promulgated, the new rule would shift the costs
of disasters that do not receive declarations to hazard-stricken states, tribes, territories, and local
governments (see “Cost of PA Program” and “Strained Federal, State, and Local Workforce
Capacity”).35
PA Recipients and Applicants
If PA is authorized pursuant to a Stafford Act declaration, the state, tribe, or territory receiving the
declaration becomes the PA primary grant Recipient (see Figure 3).36 FEMA and the Recipient
execute a FEMA-State/Tribal/Territory Agreement (hereinafter FEMA-State Agreement), as
appropriate.37 FEMA-State Agreements detail the understandings, terms, and commitments under
which Stafford Act assistance, including PA, is to be provided.38 The incident period and the PA
cost share are among these terms. To receive PA for permanent work, Recipients must
additionally have a FEMA-approved hazard mitigation plan in place.39
Once the agreement is established, the Recipient administers PA awards for counties that are
authorized to receive assistance under the relevant Stafford Act declarations.40 SLTTs as well as
eligible nonprofits may apply for funding for specific projects as Applicants (see Figure 3).
FEMA obligates funds for approved projects to the Recipient, which then reimburses Applicants
for approved costs of completed work (for more information, see “Public Assistance Funding
Procedures”).
34 GAO, Federal Disaster Assistance: Improved Criteria Needed to Assess a Jurisdiction’s Capability to Respond and
Recover on Its Own, GAO-12-838, September 2012, https://www.gao.gov/products/GAO-12-838.
35 See CRS Insight IN11534, Authorizing Stafford Act Public Assistance, by Erica A. Lee.
36 44 C.F.R. §§206.201(m), 202.202(b).
37 44 C.F.R. §206.44(a).
38 44 C.F.R. §206.44(a)-(b).
39 44 C.F.R. §206.226(b); for more information, see FEMA, “Hazard Mitigation Planning,” https://www.fema.gov/
emergency-managers/risk-management/hazard-mitigation-planning.
40 44 C.F.R. §206.202. FEMA outlines the requirements of Recipient administration and planning in FEMA, PAPPG
2020, pp. 26-28.
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Figure 3. Structure of FEMA Public Assistance Program Administration
Source: CRS interpretation of 44 C.F.R. §§206.200-206.209.
Eligibility
Eligibility is a critical element of the PA Program. Because PA funding is not limited for a given
incident, entity, or project once it is authorized, eligibility is often the primary constraint on PA
spending.41 Even after PA is authorized for a particular county, municipality, or parish in the
presidential Stafford Act declaration or amendment, PA eligibility must be established for each
project.
The Stafford Act, federal regulations, and FEMA policy restrict eligibility for PA by four primary
criteria: Applicant, facilities, work, and costs. FEMA treats these criteria as an “eligibility
pyramid,” as the eligibility of each tier depends on the tier below (see Figure 4). For example,
only facilities legally owned or operated by eligible Applicants may receive PA. To receive PA
funding, all four tiers of the pyramid must be met. These eligibility tiers are detailed in the
following four sections.
41 FEMA occasionally releases disaster-specific guidance detailing specific costs or work that may be eligible for PA in
the case of unusual or catastrophic disasters; for example, the COVID-19 pandemic or Hurricane María recovery in
Puerto Rico.
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Figure 4. FEMA’s PA Program Eligibility Pyramid
Source: CRS interpretation of FEMA, Public Assistance Program and Policy Guide, v. 4, effective June 1, 2020, p. 38.
Applicants
The Stafford Act limits entities who may receive PA to SLTTs as well as certain private
nonprofits. Eligible nonprofits are those that perform services often or otherwise performed by
governmental bodies, defined as critical services42 or non-critical, “essential” services43 available
to the general public. Nonprofits providing critical services include educational, utility, irrigation,
emergency, medical, rehabilitational, and temporary or permanent custodial care facilities.44
Nonprofits providing non-critical but essential services include community centers, libraries,
homeless shelters, food banks, broadcasting facilities, houses of worship, senior citizen centers,
and rehabilitation facilities.45
For-profit businesses are ineligible for PA. However, eligible Applicants may contract for-profit
entities to perform PA-eligible work and receive reimbursement through the PA Program for the
costs of the contract.46 For example, a city eligible for PA debris removal may contract a
landscaping company to remove fallen trees from city-owned property. The city could then pay
the costs of the contract, and submit those costs to FEMA for reimbursement on a cost-share
basis.
Facility
The Stafford Act limits the use of PA for repair and restoration to facilities owned or legally
maintained by eligible Applicants.47 Facilities owned or legally maintained by private non-profits
42 See 42 U.S.C. §5122(11)(A), Section 102(11)(A) of the Stafford Act, and 44 C.F.R. §206.221(e). FEMA provides a
full discussion on the eligibility of private non-profit organizations in FEMA, PAPPG 2020, pp. 43-47.
43 See 42 U.S.C. §5122(11)(B), Section 102(11)(B) of the Stafford Act, and 44 C.F.R. §206.221(e)(7). See also FEMA,
PAPPG 2020, pp. 43-47. Section 20604 of the Bipartisan Budget Act of 2018 (P.L. 115-123) changed eligibility for
houses of worship under the Stafford Act. Per 42 U.S.C. §5122(11)(B), “[n]o house of worship may be excluded from
this definition because leadership or membership in the organization operating the house of worship is limited to
persons who share a religious faith or practice.”
44 FEMA, PAPPG 2020, p. 12.
45 FEMA, PAPPG 2020, p. 13.
46 FEMA, PAPPG 2020, pp. 30-33. FEMA released a memorandum for COVID-19 procurement. FEMA,
“Procurement Under Grants Conducted Under Emergency or Exigent Circumstances for COVID-19,” memorandum,
March 17, 2020, https://www.fema.gov/media-library-data/1584457999950-7186ffa29ace3e6faf2ca2f764357013/
Procurement_Under_EE_Circumstances_Memo_final_508AB.pdf. See also FEMA, “Procurement Under Grants:
Under Emergency or Exigent Circumstances,” fact sheet, March 20, 2020, https://www.fema.gov/news-release/2020/
03/20/procurement-under-grants-under-exigent-or-emergency-circumstances.
47 Stafford Act Section 406(a)(1); 42 U.S.C.§5172(a)(2). See also 44 C.F.R. §206.223(a)(1)-(2).
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must provide a critical service (including power, water, sewer, wastewater, communications,
education, and emergency medical care, including those operated by religious organizations) in
order to be eligible.48
FEMA does not provide PA for permanent work for federal facilities, or for the reconstruction of
facilities whose repair falls under a specific federal authority—even if the other federal authority
does not ultimately fund the necessary repairs.49 For example, the reconstruction of certain flood
control works may fall under the authority of the U.S. Army Corps of Engineers (USACE) or the
Department of Agriculture’s Natural Resources Conservation Service (NRCS), and thus would be
ineligible for PA.50 Exceptions may be granted if the federal agency has formally designated an
eligible Applicant as the entity legally responsible for a facility.51
Work
The Stafford Act limits the provision of PA to work required as a result of the declared incident
and located within a designated area of a major disaster or emergency (excepting emergency
sheltering and evacuation).52 FEMA organizes work eligible for reimbursement into three broad
types and eight specific categories that may be individually authorized in a declaration:
Emergency Work
o Category A—Debris Removal
o Category B—Emergency Protective Measures
Permanent Work
o Category C—Roads and Bridges
o Category D—Water Control Facilities
o Category E—Buildings and Equipment
o Category F—Utilities
o Category G—Parks, Recreational, Other
Management
o Category Z—Management Costs
Additionally, work must be the “legal responsibility” of an eligible Applicant in order to qualify.
In practice, FEMA generally considers SLTTs to have legal responsibility for PA emergency
work.53 FEMA vests facility owners with legal responsibility for permanent work.54
48 Stafford Act Sections 406(a)(3)(A)(i) and 406(a)(3)(B)-(C); 42 U.S.C. §5172(a)(3)(A)(i) and 42 U.S.C.
§§5172(a)(3)(B)-(C).
49 44 C.F.R. §206.226(a); FEMA, PAPPG 2020, pp. 53-54. Stafford Act Section 405 does enable the President to
authorize any federal agency to repair federal facilities damaged or destroyed by a major disaster, but this statute is not
included in the PA program, and Recipients may not receive reimbursement for these projects. 42 U.S.C. §5171(a)-(b).
50 FEMA, PAPPG 2020, pp. 171, 268-270.
51 FEMA, PAPPG 2020, pp. 53-54.
52 44 C.F.R. §206.223(a)(3).
53 Exceptions exist. For example, FEMA has in certain cases determined that medical or custodial care facilities are
eligible for emergency work. FEMA, “Emergency Medical Care,” https://www.fema.gov/fact-sheet/emergencymedical-care.
54 44 C.F.R. §206.223(b).
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Finally, all PA projects must comply with all applicable statutes, executive orders, regulations,
and policies. Many statutes, executive orders, and regulations establish requirements to protect
the environment as well as historic and archaeologic resources. FEMA reviews PA projects to
ensure compliance with applicable environmental and historic preservation requirements.55
Applicants must also comply with federal procurement requirements.56
PA Emergency Work
PA emergency work may be authorized under an emergency or major disaster declaration. It
includes efforts undertaken to save lives; protect property, public health, and safety; and reduce or
avert the threat of a catastrophe. These activities are grouped into two major categories:
Debris Removal (Category A)—provides direct assistance and reimbursement for the costs of
removing debris and wreckage from public and, in more limited cases, privately-owned property,
when FEMA determines such work is in the public interest.57
Emergency Protective Measures (Category B)—provides assistance for work undertaken to
save lives and protect property. Emergency protective measures are arguably the broadest
category of work under FEMA’s PA Program. Emergency protective measures may include
activities ranging from prepositioning resources before a hazard strikes, to search-and-rescue in
the immediate aftermath of an incident, to the construction of temporary facilities to undertake
emergency medical care, sheltering, food provision, and other essential services for months after
the threat has passed.58
Direct Federal Assistance
When PA Applicants do not have the capacity to perform eligible work under the PA Program, FEMA may provide
direct assistance (referred to as Direct Federal Assistance or DFA).59 In these cases, FEMA may task FEMA
personnel or other federal agencies with performing work on behalf of the Applicant. FEMA may provide supplies,
personnel, and facilities for response activities. The Stafford Act authorizes DFA only for PA emergency work and
Individual Assistance, not for PA Permanent Work.60 DFA is subject to the same cost-share requirements as other
forms of PA.61 FEMA tasks other agencies including the U.S. Department of Defense, and U.S. Department of
Agriculture, and the Army Corps of Engineers (USACE) to perform Direct Federal Assistance in directives called
mission assignments.62 Recent examples include mission assignments for the USACE to support efforts to remove
450,000 cubic yards of debris following tornadoes that struck Tennessee in March 2020.63
55 FEMA, PAPPG 2020, pp. 54-55, 221-226.
56 FEMA, PAPPG 2020, pp. 76-85.
57 Authorized in Stafford Act Sections 403, 407, 428, and 502; 42 U.S.C. §§5170a, 5170b, 5173, 5189f, 5192. See also
44 C.F.R. §206.208. For a non-exclusive list of eligible activities, see FEMA, PAPPG 2020, pp. 110-111; a detailed
discussion of eligible costs may be found at pp. 111-137.
58 Authorized in Stafford Act Sections 402, 403, 418, 419, 502; 42 U.S.C. §§5170a, 5170b, 5185-86, 5192. See also 44
C.F.R. §206.208. For a non-exclusive list of eligible activities, see FEMA, PAPPG 2020, pp. 110-111; a detailed
discussion of eligible costs may be found at pp. 111-137.
59 Authorized in Stafford Act Section 402, 418, 419, 502; 42 U.S.C. §§5170a, 5185-86, 5192. See also 44 C.F.R.
§206.208.
60 FEMA, “FEMA POLICY: Mission Assignments,” FEMA Policy #104-010-2, p. 9, https://www.fema.gov/sites/
default/files/2020-04/MA_Policy_aug172018.pdf.
61 Ibid., pp. 2-3.
62 44 C.F.R. §206.208(c)(1).
63 See CRS Insight IN11392, COVID-19 Alternate Care Sites (ACSs): Role and Activities of the U.S. Army Corps of
Engineers, by Nicole T. Carter and Hannah Fischer; Lee Roberts, USACE, “Debris team wrapping up FEMA technical
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PA Permanent Work
Permanent Work may only be authorized under a major disaster declaration. PA permanent work
provides reimbursement for approved costs to repair, restore, reconstruct, or replace the following
types of eligible facilities damaged in a declared major disaster:
Roads and Bridges (Category C)—except federal aid roads;
Water Control Facilities (Category D)—including dams and levees that are not
under the authority of other federal agencies;
Buildings and Equipment (Category E)—including eligible building contents;
Utilities (Category F)—including gas, power, water, communication, and sewage
facilities; and
Parks, Recreational, Other (Category G)—including railways, beaches, piers,
ports, and harbors.64
Both the Stafford Act and federal regulations place additional restrictions on PA permanent work
for nonprofits. Nonprofit Applicants must first apply for a loan from the Small Business
Administration (SBA) disaster loan program in order to be eligible for PA permanent work. Only
reconstruction costs not covered by an SBA loan are eligible for PA.65
PA Permanent Work Beyond Repair and Reconstruction
In certain cases, Applicants may receive PA to pursue projects beyond facility repair and reconstruction. For
instances, Applicants may determine that facilities require replacement or relocation. These projects are subject to
particular requirements.
Facility Replacement: FEMA may provide PA for the costs of replacement if the costs of repair or
reconstruction are estimated to exceed 50% of the estimated costs of replacement.66
Facility Relocation: FEMA may provide PA for relocation if relocation complies with other applicable
regulations, the original location is subject to repetitive losses (e.g., multiple floods), and the newly proposed
project is cost-effective.67 FEMA may utilize its Benefit-Cost Analysis process to determine cost effectiveness.68
The Stafford Act also authorizes PA for specific types of projects when Applicants determine “that the public
welfare would not best be served” by repairing, restoring, reconstructing, or replacing the original disasterdamaged facility.69 In these cases, Applicants may receive capped PA awards for Improved Projects or Alternate
Projects (for more information see Appendix B).
Improved Projects: Applicants may seek to make improvements to a damaged facility that exceed the
requirements of eligible codes or standards. A project that restores the pre-disaster function of a facility and
incorporates improvements or changes to the pre-disaster design is an Improved Project.70 Improved projects
receive capped awards.71 For example, Joplin Schools in Missouri decided to relocate and improve upon Old South
support mission in Middle Tennessee,” April 23, 2020, https://www.usace.army.mil/Media/News-Archive/StoryArticle-View/Article/2162830/debris-team-wrapping-up-fema-technical-support-mission-in-middle-tennessee/.
64 Public and nonprofit facilities are defined in the Stafford Act Section 102(10)-(11) and 44 C.F.R. §§206.221(e) and
(h).
65 Stafford Act Section 406(a)(3)(A)(ii); 42 U.S.C. §5172(a)(A)(3)(ii); 44 C.F.R. §206.226(c)(2).
66 44 C.F.R. §206.226(f); FEMA, PAPPG 2020, pp. 156-160.
67 FEMA, PAPPG 2020, pp. 160-161.
68 See FEMA, “Benefit-Cost Analysis,” https://www.fema.gov/grants/guidance-tools/benefit-cost-analysis.
69 Section 406(c) of the Stafford Act, 42 U.S.C. §5172(c); 44 C.F.R. §206.203(d)(2).
70 FEMA, PAPPG 2020, p. 163.
71 Section 406(c) of the Stafford Act, 42 U.S.C. §5172(c); 44 C.F.R. §206.203(d)(2).
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Middle School instead of simply rebuilding it through exterior grounds project after a tornado destroyed the
school in 2011.72 Joplin Schools received an award for the new, improved facility (an improved project) that was
capped on the basis of the estimated costs to replace Old South Middle School.
Alternate Projects: Alternate projects are projects that do not restore the function of the disaster-damaged
facility.73 For example, following severe storms in Milwaukee, WI, the city determined that the public would be
better served by reconfiguring the water distribution system rather than repairing a disaster-damaged pumping
station; FEMA approved the alternate project and obligated funds equivalent to the estimates to restore the
pumping station to predisaster use towards the alternate project. 74
Management Costs
FEMA provides PA for eligible management costs that Recipients and Applicants incur while
managing PA awards. These costs may include the costs of conducting PDAs, hosting PA
Program meetings, site inspections, preparing project worksheets, and managing PA grant
program documentation.75 Under the Stafford Act, FEMA may provide funding for up to 7% of
the total PA awarded within a jurisdiction to Recipients for the actual eligible costs they incur for
management of all related PA grants.76 Additionally, FEMA may provide funding for up to 5% of
the total PA awarded to an Applicant for actual eligible costs incurred for management of the PA
projects they complete.77 FEMA categorizes these awards as “Category Z.”
Costs
Both the Stafford Act and regulations limit the provision of PA to specific costs. Generally, PA
may not reimburse costs funded by other means, including other federal agencies or private
insurance. The Stafford Act prohibits such as a “duplication of benefits.”78 However, the
enactment of the Disaster Recovery Reform Act (DRRA; P.L. 115-254) in 2018 granted the
President the authority to waive this requirement if the waiver is in the public interest and does
not result in waste, fraud or abuse.79
Costs must also meet the definition of “reasonable” established in federal regulations: “a cost is
reasonable if, in its nature and amount, it does not exceed that which would be incurred by a
72 FEMA Public Assistance Appeals Database, “Improved Project—Joplin Schools,” signed July 24, 2018,
https://www.fema.gov/appeal/improved-project-5.
73 44 C.F.R. §206.203(d)(2).
74 Department of Homeland Security Office of Inspector General (DHS OIG), FEMA Public Assistance Grant Program
Funds Awarded to City of Milwaukee, Wisconsin, DD-12-14, June 2012, pp. 1-2, https://www.oig.dhs.gov/sites/default/
files/assets/GrantReports/OIG_DD-12-14_Jun12.pdf.
75 FEMA, “Public Assistance Management Costs (Interim), FEMA Recovery Policy FP 104-11-12,” November 14,
2018, p. 4, https://www.fema.gov/sites/default/files/2020-07/pa_management_costs_interim_policy.pdf.
76 Ibid., pp. 3-4; Section 324 of the Stafford Act; 42 U.S.C. §5165b.
77 For more information, see FEMA, “Public Assistance Management Costs (Interim): FEMA Recovery Policy FP 10411-2,” November 11, 2018, https://www.fema.gov/sites/default/files/2020-07/
pa_management_costs_interim_policy.pdf; FEMA, “Public Assistance Management Costs SOP,” February 11, 2019,
https://www.fema.gov/sites/default/files/2020-07/pa_mgmt_costs_sop_final.pdf.
78 Section 312 of the Stafford Act; 42 U.S.C. §5155 and 44 C.F.R. §206.250(c). For more information, see CRS Report
R44553, SBA and CDBG-DR Duplication of Benefits in the Administration of Disaster Assistance: Background, Policy
Issues, and Options for Congress, by Bruce R. Lindsay and Eugene Boyd.
79 §1210 of DRRA, P.L. 115-254, as it amends Section 312 of the Stafford Act, 42 U.S.C. §5155. For more
information, see CRS Report R45819, The Disaster Recovery Reform Act of 2018 (DRRA): A Summary of Selected
Statutory Provisions, coordinated by Elizabeth M. Webster and Bruce R. Lindsay, pp. 34-37.
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prudent person under the circumstances prevailing at the time the decision was made to incur the
cost.”80 FEMA guidance details how the Applicant, the Recipient, and FEMA may assess cost
reasonability, including analysis of historical prices and pricing constraints imposed by exigent
circumstances.81
PA Requirements and Procedures
Cost-Share
The Stafford Act provides assistance on a federalist model that supplements state, local, tribal,
and territorial resources on the basis of a cost share. The Stafford Act authorizes FEMA to
reimburse at least 75% of the eligible costs of specific types of disaster response and recovery
work undertaken by PA applicants.82 The remaining 25% cost share is the responsibility of the
Recipient, though some pass it on to Applicants. State approaches to meeting PA cost shares vary.
For example, Pennsylvania pays almost all PA nonfederal cost shares, whereas Oregon requires
Applicants to cover the cost share.83
Federal regulations describe the means through which Recipients may meet the nonfederal cost
share. Regulations prohibit Recipients from using other federal funds to meet the nonfederal cost
share, unless those funds are statutorily authorized to meet federal cost-share requirements.84 The
Department of Housing and Urban Development’s Community Development Block Grant, for
example, is statutorily authorized to meet federal cost-share requirements for other federal
programs.85 Recipients may also apply the value of donated goods, resources, and labor to fulfill
the nonfederal cost share.86
Several hundred declarations and declaration amendments have included cost-share increases
since the enactment of the Stafford Act in 1988.87 Additionally, Congress has acted to increase the
federal cost share statutorily for certain severe incidents.88
The Stafford Act authorizes the President to increase the federal cost share when warranted.
FEMA may recommend that the President increase the federal cost share in extraordinary
80 2 C.F.R. §200.404; OMB Circular A-87.
81 FEMA, “Public Assistance: Reasonable Cost Estimation,” Job Aid, October 13, 2018, https://www.fema.gov/media-
library-data/1539879525279-d00ae1c43f9765c5a4b415e1a31202c5/
PA_Reasonable_Cost_Evaluation_Job_Aid_508_FINAL_10-16-2018.pdf.
82 See, for example, Stafford Act Section 503(a), 42 U.S.C. §5193(a), which states “[t]he Federal share for assistance
provided under this subchapter [Subchapter V—Emergency Assistance Programs] shall be equal to not less than 75
percent of the eligible costs”; and 42 U.S.C. §5170b(b), which states “[t]he Federal share of assistance under this
section [Section 403—Essential Assistance] shall be not less than 75 percent of the eligible cost of such assistance.”
83
Pew Charitable Trust, What We Don’t Know About State Spending on Natural Disasters Could Cost Us, June 2018,
pp. 13-14; National Governor’s Association, Memorandum on Cost Share Considerations for FEMA Public Assistance
Grants, May 20, 2020, https://www.nga.org/wp-content/uploads/2020/04/NGA-Memo_Cost-Share_Final.pdf.
84 2 C.F.R. §200.306(b)(5). The Department of Housing and Urban Development’s Community Development Block
Grant, for example, is statutorily authorized to meet federal cost-share requirements.
85 For more information, see CRS Report R46475, The Community Development Block Grant’s Disaster Recovery
(CDBG-DR) Component: Background and Issues, by Michael H. Cecire and Joseph V. Jaroscak.
86 2 C.F.R. §200.306(e)-(j).
87 For more information, see CRS Report R41101, FEMA Disaster Cost-Shares: Evolution and Analysis, by Natalie
Keegan and Elizabeth M. Webster.
88 One example of such legislation is Section 309 of Division A of P.L. 116-6, which raised the federal cost share to
90% for Public Assistance emergency work for the wildfires of 2018.
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circumstances.89 According to federal regulations, FEMA recommends an increase in the federal
cost share to up to 90% when the estimated cost of PA exceeds an established threshold for the
state, tribe, or territory (in FY2021, $151 per capita).90 FEMA may also take into account other
disasters in the affected area during the preceding twelve months.91 In particularly severe
situations, FEMA may recommend an increase in the cost share of PA emergency work to 100%
for a limited period of time, irrespective of the estimated damages.92 Such adjustments sometimes
result in differing cost shares for permanent and emergency work.
The Stafford Act also authorizes the President to increase the federal cost share for permanent
work up to 85% when Recipients undertake a range of mitigation measures.93 Measures may
include the adoption and enforcement of the most recent building codes and participation in the
National Flood Insurance Program’s (NFIP’s) Community Rating System for flood-abatement
measures.94
Finally, the Stafford Act authorizes FEMA to advance the nonfederal cost share to Applicants or
Recipients if warranted due to concurrent major disasters or particularly overwhelming
incidents.95
Insurance Requirements
The Stafford Act requires some Applicants to carry insurance in order to “protect themselves …
[and] … supplement or replace government assistance.”96 For example, Applicants that receive
PA to repair or replace disaster-damaged facilities must obtain and maintain insurance “of such
type and extent” necessary to protect against future loss to the property.97 Applicants in identified
flood hazard zones must secure insurance through the NFIP98 or other insurance as required by
the Applicant’s state insurance commissioner.99 The Stafford Act also limits PA for uninsured,
flood-damaged facilities in violation of the National Flood Insurance Act. Such properties
generally may receive PA only for damages that exceed estimated insurance proceeds had the
89 44 C.F.R. §206.47. For cost-share adjustments for tribes, see 42 U.S.C. §5170(c), and FEMA, Tribal Declarations
Pilot Guidance, January 2017, p. 38-39, https://www.fema.gov/media-library-data/152303328435820b86875d12843441a521a6141c15099/Pilot_Guidance.pdf.
90 44 C.F.R. §206.47(b). Per federal regulations, the threshold is annually adjusted. For disasters declared between
January 1, 2021, and December 31, 2021, the threshold is $151. FEMA, Department of Homeland Security (DHS),
“Notice of Adjustment of Statewide per Capita Indicator for Recommending a Cost Share Adjustment,” Advisory,
distributed January 28, 2021.
91
44 C.F.R. §206.47(c).
92 44 C.F.R. §206.47(d).
93 Stafford Act 406(b)(3)(A); 42 U.S.C. §5172(b)(3)(A).
94 Stafford Act 406(b)(3)(A); 42 U.S.C. §5172(b)(3)(A). See also “Community Rating System” in CRS Report R44593,
Introduction to the National Flood Insurance Program (NFIP), by Diane P. Horn and Baird Webel.
95 Stafford Act Section 319; 42 U.S.C. §5162.
96 Stafford Act Section 101(b)(4); 42 U.S.C. §5121(b)(4).
97 Stafford Act Section 311(a)-(b); 42 U.S.C. §5154(a)-(b). See also 44 C.F.R. §206.250(a)-(b), §206.252(d), and
§206.253(b)(1).
98 44 C.F.R. §206.250(a); 44 C.F.R. §206.252.
99 Stafford Act Section 311(a)(2); 42 U.S.C. §5154(a)(2).
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facility been properly covered.100 FEMA details insurance requirements in regulations and
guidance.101
Public Assistance Funding Procedures
PA projects are reimbursed according to procedures that vary according to the size and type of
project. In all cases, PA funds pass from FEMA to the Recipient to the Applicant. For this reason,
the Recipient is sometimes referred to as a “pass-through entity.”102
FEMA obligates PA awards to the Recipient based on either the actual costs of completed work,
or a project estimate if the work has yet to be completed.103 A disaster-stricken county may have
already incurred and paid for the costs of debris removal by the time FEMA approves the project,
whereas reconstruction projects may only be in the early phases of damage and repair estimation
when a project is approved. After FEMA obligates funds, the Recipient then disburses funds to
the Applicant for approved costs (for more information see Appendix B).
Applicants may receive two primary types of awards—awards based on actual costs (hereinafter
standard procedures, also referred to as “406 procedures”) and capped awards (which include
Section 428 Alternative Procedures; hereinafter “Alternative Procedures”).
Larger PA projects (those that exceed $132,800 in FY2021) are funded on a reimbursement basis
under either standard or Alternative Procedures.104 For this reason, Applicants generally need
nonfederal funds to pay for eligible costs before they may request and receive reimbursement.105
In certain cases, the requirement that Applicants cover initial costs before receiving
reimbursement has burdened some Applicants, particularly those facing catastrophic losses (as
reported, for example, for Applicants in New Orleans following Hurricane Katrina and in Puerto
Rico following the 2017 hurricanes).106
100 Stafford Act Section 406(d); 42 U.S.C. §5172(d) and 44 C.F.R. §206.250(d) and §206.252(a)-(b). For additional
information, see CRS Report R44593, Introduction to the National Flood Insurance Program (NFIP), by Diane P.
Horn and Baird Webel.
101 44 C.F.R. §§206.250-206.253. FEMA, Public Assistance Policy On Insurance, FP 206-086-1, June 29, 2015,
https://www.fema.gov/sites/default/files/2020-05/FP206-086-1_PublicAssistancePolicyInsurance_062915.pdf.
102 See, for example, FEMA, PAPPG 2020, p. 21.
103 FEMA, PAPPG 2020, pp. 185-187, 190-191; 44 C.F.R. §44 206.205(b). Awards over $1 million may be obligated
according to Strategic Funds Management, under which FEMA will obligate funds as needed based on the project
completion schedule. FEMA, Strategic Funds Management—Implementation Procedures for the Public Assistance
Program, FEMA SOP 9570.24, December 2012, https://www.fema.gov/sites/default/files/2020-07/
fema_9570.24_startegic-funds-mgmt_SOP_12-21-2012.pdf.
104 44 C.F.R. §206.205(a); and email from FEMA Congressional Affairs staff, September 10, 2020. Recipients may
disburse funds to Applicants in advance for the minimum amounts needs and timed with the Applicants immediate cash
requirements, per 44 C.F.R. §200.305. States may place different rules on requests for advance funds. See, for example,
Texas Division of Emergency Management, “State of Texas Administrative Plan for Public Assistance,” 2018, pp. 2728, https://tdem.texas.gov/wp-content/uploads/2019/08/PA-State-Admin-2018-Texas-State-Administrative-PlanFINAL.pdf.
105 FEMA Office of Legislative and Congressional Affairs, email to CRS, September 10, 2020.
106 See Former Chairman Mary Landrieu, U.S. Congress, Senate Committee on Homeland Security and Governmental
Affairs, Stafford Act Reform: Shaper Tools for A Smarter Recovery, 111th Cong., 2nd sess., S.Hrg. 111-895, May 12,
2010, pp. 29 (hereinafter HSGAC, Stafford Act Reform); Government of Puerto Rico, 2020 Fiscal Plan for Puerto Rico,
As Submitted to the Financial Oversight and Management Board for Puerto Rico on May 3, 2020, pp. 28-29,
https://www.aafaf.pr.gov/ assets/2020-fiscal-plan-may-3-2020.pdf (hereinafter Government of Puerto Rico, 2020
Fiscal Plan).
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PA Standard Procedures—Awards for Actual Costs
Most PA projects to date have been processed under standard reimbursement procedures. Under
standard procedures, Applicants receive reimbursements for large projects (set at $132,800 in
FY2021) on the basis of the actual costs of approved work.107 For smaller projects, Applicants
may receive funds as soon as a project is obligated. For larger projects, Applicants pay for initial
costs, and then receive reimbursement based on the applicable cost share (for example, for 75%
of the costs).
During the course of a large project, the Applicant may encounter delays, cost overruns, or the
need to modify the scope of work.108 For any of these reasons, an Applicant may determine that
the project’s scope of work must substantively change after the project has been approved and
obligated.109 For example, the City of Columbia, SC identified the need to change the scope of
work of an obligated project when the City discovered previously undetected damage to its Metro
Wastewater Treatment Plant following severe storms in October 2015.110 FEMA regulations
permit Applicants completing projects under standard procedures to change the scope of work to
include new costs if the costs are eligible and necessary to complete the project, and if FEMA
gives prior approval.111 In such a case, the Applicant submits a description and justification of the
change in the project’s scope of work (including any cost overruns) for the Recipient and
FEMA’s review.112 If approved, FEMA obligates the additional funds to the Recipient.
The use of standard procedures may provide certain benefits. The allowance of project
modifications and reimbursement on the basis of actual costs (including overruns) may mitigate
the Applicant’s financial risk. The use of standard procedures also affords FEMA the opportunity
to conduct timely oversight when reviewing project changes and implementation.
The use of standard procedures may also present challenges. Each significant change in the scope
of work requires FEMA approval. FEMA, GAO, and OIG have concluded that standard
procedures demand significant federal time and resources due to the complexity of the process for
project review, revision, and reimbursement.113 Additionally, the use of standard procedures may
not incentivize Applicants to control costs, as cost overruns may be eligible for additional
assistance.
107 FEMA, “Per Capita Impact Indicator and Project Thresholds,” https://www.fema.gov/public-assistance-indicator-
and-project-thresholds.
108 FEMA delimits the scope of work as follows: “For Emergency Work, the SOW includes work required to address
immediate threats and to remove debris and must include quantitative information. For Permanent Work, the SOW
includes a description of how the Applicant plans to repair, or has repaired, the damage, including repair dimensions
and hazard mitigation description and dimensions.” FEMA, PAPPG 2020, p. 183.
109 44 C.F.R. §206.204(e).
110 FEMA Public Assistance Appeals Database, FEMA Appeal Brief PW# 873, signed September 16, 2020,
https://www.fema.gov/appeal/change-scope-work-improved-project-codes-and-standards.
111 44 C.F.R. §206.204(e).
112 44 C.F.R. §206.204(e)(2).
113 GAO, Disaster Assistance: Opportunities to Enhance Implementation of the Redesigned Public Assistance Grant
Program, November 2017, GAO-18-30, pp. 2-3 (hereinafter GAO, PA Redesign); DHS OIG, Management of FEMA
Public Assistance Grant Funds Awarded to the Sewerage and Water Board of New Orleans Related to Hurricanes
Katrina, Isaac, and Gustav, OIG-20-21, March 27, 2020, pp. 20-21; FEMA Administrator Brock Long, pp. 6-7,
Governors Steve Bullock and Brian Sandoval on behalf of the National Governor’s Association (NGA), submitted
testimony, U.S. Congress, Senate Committee on Homeland Security and Governmental Affairs, FEMA: Prioritizing a
Culture of Preparedness, 115th Cong., 2nd sess., April 11, 2018, S.Hrg. 115-442, pp. 6-7 (hereinafter HSGAC,
Prioritizing Preparedness).
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PA Alternative Procedures and Capped Awards
In contrast to awards made for actual costs, Applicants may receive capped awards for certain
projects. FEMA provides capped awards under Alternative Procedures authorized under Stafford
Act Section 428 (hereinafter Alternative Procedures) as well as for improved or alternate projects
(for more information see Appendix B).
Enacted in the wake of Hurricane Sandy, SRIA authorized Alternative Procedures with the
expressed aim to reduce costs, expedite delivery of assistance, reward timely and adept
completion of PA projects, and increase the PA Program’s flexibility.114 The 113th Congress
authorized Alternative Procedures as a pilot program and allowed FEMA to waive the standard
rulemaking process in order to expeditiously implement the new procedures.115 Absent
rulemaking, FEMA has issued several iterations of guidance on the Alternative Procedures Pilot
Program (see Appendix C).116 As of March 2021, the program continues as a pilot, though
FEMA guidance treats Alternative Procedures “as the first option considered for all large
permanent work projects in order to ensure the ability of Applicants to drive their own
recovery.”117
As of August 21, 2020, Applicants had completed projects under Alternative Procedures in 54
states and territories, according to FEMA data. This accounted for approximately 28% of
obligated PA funds since the implementation of Alternative Procedures in 2013.118
Alternative Procedures include several modifications to standard procedures for large permanent
work projects (see Table 2). Most notably, awards under Alternative Procedures are capped based
on up-front and mutually agreed-to cost estimates of the work to be done. Applicants may use any
excess funds for approved purposes (for example, mitigation) if estimates exceed the actual costs
of a completed project. However, Applicants are responsible for all costs that exceed the agreedupon estimates (see Figure 5). This change transfers the risk of cost overruns or project delays
entirely to the Applicant. Under standard procedures, FEMA and the Applicant or Recipient share
the risk, according to the PA cost share.
114 The Sandy Recovery Improvement Act (SRIA), P.L. 113-2; Stafford Act Section 428. The Public Assistance
Program Alternative Procedures are codified at Section 1102 of SRIA; 42 U.S.C. §5189f. The statute reads:
Goals of Procedures—The alternative procedures adopted under subsection (a) shall further the
goals of—(1) reducing the costs to the Federal Government of providing such assistance; (2)
increasing flexibility in the administration of such assistance; (3) expediting the provision of such
assistance to a State, tribal or local government, or owner or operator of a private nonprofit facility;
and (4) providing financial incentives and disincentives for a State, tribal or local government, or
owner or operator of a private nonprofit facility for the timely and cost-effective completion of
projects with such assistance.
115 Section 1102 of SRIA, Division B of P.L. 113-2, as codified at 42 U.S.C. §5189f(f), Section 428(f) of the Stafford
Act.
116 As of November 2020, FEMA has published five pilot guides for Public Assistance Alternative Procedures for
Permanent Work, and eight guides for Public Assistance Alternative Procedures Debris Removal, in addition to
guidance on administrative costs and jobs aids, as well as three iterations each of disaster-specific guidance for Puerto
Rico’s 2017 hurricane recovery, and the Virgin Islands. Archived guidance for general Alternative Procedures is
available at FEMA, “Archives: Public Assistance Alternative Procedures (PAAP),” https://www.fema.gov/assistance/
public/policy-guidance-fact-sheets/public-assistance-alternative-procedures-paap-archives.
117 FEMA, PAPPG 2020, p. 12.
118 CRS analysis of data provided by FEMA Office of Congressional and Legislative Affairs current through August
21, 2020.
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Table 2. FEMA’s Public Assistance Standard Procedures vs. Alternative Procedures
Topic
Standard Public Assistance
Procedures
Alternative Public Assistance
Procedures
(“406 Procedures”)
(“428 Procedures”)
Award
Awards are based on costs of actual
work.
Awards are capped on the basis of
estimates of the cost of eligible work
agreed to by FEMA, the Recipient, and
Applicants.
Fixed-cost estimates may not be
amended after agreement is reached,
except if insurance proceeds or failure
to obtain and maintain insurance alters
the estimated cost of the project.
Certain cost estimates are validated by
a third-party expert panel.
Cost Overruns
Applicants may receive PA on a costshare basis for eligible costs that exceed
initial project estimates.
Applicants are responsible for the
difference between the cost of
estimated and actual work.
Excess Funds
Applicants may not access funds
remaining if project estimates exceed
actual project costs.
Applicants may use award funds
remaining after the completion of actual
work on eligible work, including
mitigation and other PA projects.
Consolidated Projects
Standard procedures require Applicants
to use funds for the project
documented in the original scope of
work.
Applicants using Alternative Procedures
may consolidate funds from multiple
fixed-cost PA awards across multiple
facilities or projects. For example, an
Applicant may use funds from a project
that runs under budget to fund a
project that runs over budget.
Alternate Projects (eligible
projects beyond the
reconstruction or
replacement of disasterdamaged facility)
Prior to 2018, PA standard procedures
reduced funding for alternate projects
by 10%. However, the Disaster
Recovery Reform Act of 2018 (P.L. 115254) eliminated this reduction upon its
enactment in October 2018.
Applicants using Alternative Procedures
may complete alternate projects using
funds from a fixed-cost estimate
without any reduction in funding.
Sources: Stafford Act Section 428; 42 U.S.C. §4189f; 44 C.F.R. §206.204(e); FEMA, Public Assistance Alternative
Procedures for Permanent Work Pilot, version 4, FEMA Recovery Policy FP 104-009-7, August 19, 2019,
https://www.fema.gov/media-library-data/1568910139061-36ef984e91a480f99341e6836ac27ae8/
PAAP_Perm_Work_Guide_V4_2019_508.pdf.
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Figure 5. Funding Scenarios for Large Projects Under Alternative and Standard
Public Assistance Procedures
Source: CRS analysis of Stafford Act Section 428(e)(1)(A) and (D).
Notes: Large projects are those that exceed a certain project threshold (e.g., $132,800 for FY2021). FEMA,
“Per Capita Impact Indicator and Project Thresholds,” https://www.fema.gov/public-assistance-indicator-andproject-thresholds.
The use of Alternative Procedures and other capped awards afford certain opportunities to
Applicants and FEMA:
Applicants have the ability to modify facilities rather than restoring a disasterdamaged facility to its predisaster use.119
Applicants using Alternative Procedures do not need to track costs with the same
granularity as required under standard procedures, which may reduce the grant
management burdens for both Applicants and Recipients.120
FEMA may be able to commit fewer resources to project oversight and review
after Alternative Procedures projects are obligated, as scope of work changes are
not permitted.
FEMA may also control federal expenses by avoiding fiscal exposure to cost
overruns and project delays.
119 Predisaster use refers to the capacity and function of the facility immediately prior to the incident. For more
information, see 44 C.F.R. §206.226.
120 FEMA, PAPPG 2020, pp. 188-189.
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Applicants using Alternative Procedures may retain any remaining funds if
estimates exceed actual costs and use for other eligible projects. This feature is
not available for alternate or improved projects.121
These capped awards also present a number of challenges.
As noted earlier, capped awards transfer the risk of cost overruns or project
delays entirely to the Applicant (see Figure 5).
GAO has found that Alternative Procedures have sometimes resulted in
significant recovery delays due to the time-consuming process required to
establish an agreement between FEMA, Recipients, and Applicants on project
cost estimates.122
These recovery delays require significant FEMA involvement.
For these reasons, Alternative Procedures may not, in practice, save federal resources and control
spending as intended. These challenges are discussed in greater detail in the Alternative
Procedures” section under “Congressional Considerations,” below.
Building Standards
In addition to the funding mechanisms detailed above, the PA Program requires that all PAeligible work incorporate certain minimum building standards. DRRA amended the Stafford Act
to require that PA permanent work projects be reconstructed according to
the latest published editions of relevant consensus-based codes, specifications, and
standards that incorporate the latest hazard-resistant designs and establish minimum
acceptable criteria for the design, construction, and maintenance of residential structures
and facilities that may be eligible for assistance under this Act for the purposes of
protecting the health, safety, and general welfare of the facility’s users against
disasters….123
FEMA guidance generally interprets this provision as a requirement for the construction of many
PA projects to conform to the most recent published International Code Council standards (e.g.,
the International Building Code) or other standards established by national professional
associations (e.g., the American Society of Civil Engineers).124 According to this guidance, PA
121 FEMA, PAPPG 2020, p. 164.
122 Omar J. Marrero, Governor of Puerto Rico’s Authorized Representative, Letter to Gene L. Dodaro, Comptroller
General of the United States, January 30, 2019, in GAO, Puerto Rico Hurricanes: Status of FEMA Funding, Oversight,
and Recovery Challenges, GAO-19-256, March 14, 2019, pp. 37-38, https://www.gao.gov/products/GAO-19-256,
(hereinafter GAO, Puerto Rico Hurricanes 2019); GAO Representative Chris P. Currie, oral testimony, U.S. Congress,
House Homeland Security Subcommittee on Emergency Preparedness, Response and Recovery, Hearing on Puerto
Rico and Virgin Islands Hurricane Recovery, 116th Cong., 1st sess., July 11, 2019; GAO, 2018 Pacific Disasters:
Preliminary Observations of FEMA’s Disaster Response and Recovery Efforts, GAO-20-614T, July 8, 2020, pp. 16-18
(hereinafter GAO, 2018 Pacific Disasters).
123 §1235(b) of DRRA, P.L. 115-254, as it amends §406(e)(1)(A) of the Stafford Act, P.L. 93-288, as amended, 42
U.S.C. §5172(e)(1)(A). DRRA also amended the Stafford Act to require PA-eligible costs include estimates of
replacing eligible projects under Stafford Act Section 406 “in a manner that allows the facility to meet the definition of
resilient” developed pursuant to Section 406(e)(1)(A). As of January 2021, FEMA had not yet promulgated a new
definition of “resilient.” DRRA requires the definition to be published no later than October 2020.
124 Appendix A of FEMA, “Consensus-Based Codes, Specifications and Standards for Public Assistance,” FEMA
Recovery Interim Policy FP-104-009-11 Version 2.1, December 2019, p. 9 (hereinafter FEMA, “Consensus-Based
Codes 2019”), https://www.fema.gov/sites/default/files/2020-05/
.DRRA1235b_Consensus_BasedCodes_Specifications_and_Standards_for_Public_Assistance122019.pdf. See the
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reconstruction projects for roads, bridges, buildings, electric power, potable water and wastewater
facilities for disasters declared on or after December 20, 2019, must be built in accordance with
the most recently published hazard-resistant building codes, regardless of pre-disaster condition
or design.125 In some cases, Applicants undertaking work for certain earlier disasters may be
eligible to elect to follow the same consensus-based codes.126 Other projects (e.g., for other
facilities or earlier disasters) must be completed according to local building code standards that,
at the time of the disaster, were appropriate for the use of the facility, reasonable, enforced, and
uniformly applied to similar facilities.127
Mitigation Activities
Applicants may use PA for mitigation projects whenever permanent work is authorized and if the
project directly reduces the potential of future damage.128 Typically, PA is obligated for mitigation
projects only for damaged parts of a PA-eligible facility, though FEMA may consider other
projects on eligible facilities.129 Examples of mitigation projects include elevating flood-prone
structures, installing new drainage facilities along roads, and constructing floodwalls. FEMA will
only approve mitigation measures determined to be cost effective.130 This criteria may be met if
one of the following conditions applies:
1. the project cost does not exceed 15% of the cost of the restoration of the disasterdamaged facility (prior to any insurance reductions);131
2. the mitigation measure is listed in FEMA’s Cost-Effective Public Hazard
Mitigation Measures,132 and the measure does not exceed 100% of the eligible
repair cost of the relevant disaster-damaged facility (prior to any insurance
reductions); or
3. the mitigation project appears to be cost-effective according to FEMA’s BenefitCost analysis or comparable methodology.133
According to FEMA data, approximately $8.5 billion dollars have been obligated for PA
mitigation projects from 1999 to August 21, 2020.134
collected volumes of the International Code Council at https://codes.iccsafe.org/.
125 FEMA, “Consensus-Based Codes 2019,” p. 2. Exceptions may be granted if the use of consensus-based codes are
technically infeasible, extraordinarily burdensome to the Applicant, or inappropriate (e.g., in the case of facilities listed
on the National Register of Historic Places). Ibid., p. 4.
126 FEMA, “Consensus-Based Codes 2019,” p. 3.
127 44 C.F.R. §206.223(d); FEMA, “Consensus-Based Codes 2019,” p. 4; FEMA, FAQ: “Consensus-Based Codes,
Specifications and Standards for Public Assistance,” February 2020, p. 5, https://www.fema.gov/sites/default/files/
2020-07/fema_DRRA-1235b-public-assistance-codes-standards-faqs.pdf.
128
Sections 406(c)(1)(B) and 406(c)(2)(B) of the Stafford Act; 42 U.S.C. §§5172(c)(1)(B) and 5172(c)(2)(B). FEMA
also funds the Pre-Disaster Mitigation Program and the Hazard Mitigation Grant Program. See CRS Insight IN11187,
Federal Emergency Management Agency (FEMA) Hazard Mitigation Assistance, by Diane P. Horn.
129 FEMA, PAPPG 2020, pp. 154-155.
130 44 C.F.R. §206.226(e).
131 Cost-effectiveness for Applicants using Alternative Procedures is based on the fixed estimate to restore the damaged
facility to predisaster use. See FEMA, PAPPG 2020, pp. 156-157.
132 See Appendix J: Public Assistance Hazard Mitigation Measures in PAPPG 2020, pp. 242-246.
133 FEMA, PAPPG 2020, pp. 154-155, 242-246. FEMA, “Benefit-Cost Analysis,” https://www.fema.gov/grants/
guidance-tools/benefit-cost-analysis.
134 FEMA reported that due to data limitations in the FEMA PA information system, Emergency Management Mission
Integrated Environment (EMMIE), mitigation project obligations are estimated based on a proportion of the project
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PA Funding
PA awards and program operations are provided through the DRF. Managed by FEMA, the DRF
is the primary source of funding for Stafford Act assistance.135 DRF funding, if available, may be
used for past, current, and future incidents. DRF appropriations are “no-year” funds that may be
drawn for authorized purposes at any time until expended. Generally, Congress does not
appropriate funds for the DRF for a specific disaster, year, or program, including Public
Assistance.
In 2012, FEMA launched OpenFEMA, an online data hub that includes data on historical PA
obligations.136 The enactment of DRRA in 2018 additionally required FEMA to publish a range of
data on disaster relief programs and the DRF, including obligations data, in order to promote
agency accountability.137
The following section utilizes publicly available data from OpenFEMA as well as data provided
directly to CRS from FEMA to identify trends in PA obligations. This analysis does not include
obligations for the unique and ongoing COVID-19 pandemic (see Appendix A, “Snapshot of PA
for COVID-19”). The assembled data comprise the most comprehensive available data set and
shed light on the location, duration, and purpose of PA projects. However, at the time of
publication, CRS cannot independently verify the data sets due to several factors, including that
PA project documentation is not readily available. Additionally, CRS cannot reconcile disparities
between different FEMA datasets on PA obligations.
DRF Obligations for PA
On average, Public Assistance has drawn more from the DRF than any other Stafford Act
function (see Figure 6). PA’s share of DRF obligations is more than twice that of the next largest
program, Individual Assistance, when obligations for the unique and ongoing COVID-19
pandemic are excluded. Notably, the share of DRF obligations committed to PA is generally
increasing (see Figure 7). PA accounts for an average of 48% of DRF obligations between
FY2001 and FY2010, and grows to an average of 60% between FY2011 and FY2020.
costs for the overall PA project. FEMA Office of Congressional and Legislative Affairs, email to CRS, August 21,
2020.
135 For more information about the Disaster Relief Fund and its history, see CRS Report R45484, The Disaster Relief
Fund: Overview and Issues, by William L. Painter.
136 FEMA, “OpenFEMA,” https://www.fema.gov/about/reports-and-data/openfema; DHS, “Open Government Plan
3.0,” 2014, https://www.dhs.gov/sites/default/files/publications/
2014%20Open%20Government%20Plan%20053014_0.pdf.
137 §1224 of DRRA, P.L. 115-254, adding a new §430 of the Stafford Act, P.L. 93-288, as amended, 42 U.S.C. §5189h.
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Figure 6. Disaster RF Obligations by Category, Fiscal Years 2000-2020
According to FEMA Data
Source: CRS analysis of FEMA data on DRF Obligations, FY2000-FY2020 provided to CRS by FEMA Office of
Congressional and Legislative Affairs.
Notes: This figure reflects PA and DRF obligations less obligations for the COVID-19 pandemic in FY2020, as
reported in FEMA, Disaster Relief Fund Monthly Report, November 6, 2020.
Figure 7. FEMA’s Public Assistance Program Obligations, Fiscal Years 2000-2020
Dollars and as Percent of all DRF Obligations, According to FEMA
Source: FEMA data on DRF Obligations, FY2000-FY2020, provided to CRS by FEMA Office of Legislative and
Congressional Affairs.
Notes: This figure reflects PA and DRF obligations less obligations for the COVID-19 pandemic in FY2020, as
reported in FEMA, Disaster Relief Fund Monthly Report, November 6, 2020. Note that PA obligations often rise in
the fiscal years following a particularly severe event due in part to the pace of obligating funds for long-term
reconstruction projects and the timing of the fiscal year. For example, PA obligations for Louisiana’s Hurricane
Katrina, which made landfall in August 2005, peaked in FY2006, which lasts from October 1, 2005 to September
1, 2006.
Scale of PA Expenditures
PA obligations totaled more than $110 billion from FY2000-FY2020 and have increased in the
past three years. As shown in Figure 7, PA obligations tend to rise in the years following
catastrophic disasters such as Hurricanes Katrina, Rita, and Wilma in 2005 and Hurricanes
Harvey, Irma, and María and the California wildfires in 2017, as FEMA approves and obligates
PA projects for response efforts and long-term reconstruction projects. FY2020 reflected the
largest obligations for PA yet—more than $20 billion—even when excluding COVID-19
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expenditures. This spike partly reflects two exceptionally large obligations (totaling more than
$11 billion) for Hurricane María recovery in Puerto Rico that will support reconstruction of
territorial educational and electrical infrastructure.138
The large and growing expense of PA may be attributed to several factors. First, neither the
Stafford Act nor federal regulations restrict the size of PA awards by incident, Recipient,
Applicant, or project.139 PA is restricted by eligibility, not budgetary or programmatic funding
caps (see “Eligibility,” above).140 While federal regulations do establish time limitations during
which PA projects must be completed, extensions are frequently granted.141
Second, under standard procedures, FEMA reimburses Applicants on the basis of the actual costs
of PA projects, so cost overruns may increase the size of PA awards. The PA project approval
process enables FEMA to authorize or deny PA for specific costs, but only on the basis of
eligibility.
Finally, PA is an extensive, complex program. Projects range from emergency evacuations to the
reconstruction of state-wide infrastructure systems. The application process involves more than a
dozen steps142 and the involvement of multiple FEMA officials in addition to representatives of
the Recipient, Applicant, and, in some cases, other federal agencies or private contractors. FEMA
officials explain that projects commonly require months to scope and years to complete, requiring
significant financial, human, and material resources.143 The costs of PA reflect, in part, this
complexity and scope.
As hazards that receive major disaster declarations and PA authorization increase in frequency
and severity so, too, do PA costs. Population growth and property development in disaster-prone
areas may increase PA obligations per incident, as more communities and facilities eligible to
receive PA are placed in harm’s way.144 Additionally, scholars, industry experts, and federal
officials have concluded that disaster relief spending, including PA, is increasing and will
continue to increase due to the compounding impacts of climate change (see “Cost of PA
Program”).145
138 The White House, “President Donald J. Trump Is Supporting the People of Puerto Rico as They Continue to Rebuild
Following Natural Disasters,” September 18, 2020, https://www.whitehouse.gov/briefings-statements/presidentdonaldj-trump-supporting-people-puerto-rico-continue-rebuild-following-natural-disasters/#:~:text=PROVIDING%20
DISASTER%20relief%3A%20President%20Trump,Rico's%20recovery%20from%20Hurricane%20Maria; for more
information see CRS Report R46609, The Status of Puerto Rico’s Recovery and Ongoing Challenges Following
Hurricanes Irma and María: FEMA, SBA, and HUD Assistance, coordinated by Elizabeth M. Webster.
139 While some projects are funded as capped grants, these award caps are based on cost estimates for individual
projects, not predetermined program spending limits. See “PA Alternative Procedures.”
140 Individual PA projects may be capped if completed under Alternative Procedures. These caps are established
individually for each project. See “PA Alternative Procedures and Capped Awards.”
141 Per 44 C.F.R. §206.204(c)-(d), emergency work projects must be completed within 6 months from the declaration
date, and permanent work within 18 months of the declaration date, though extensions may be granted by the Recipient
for six months, and thereafter by FEMA.
142 A recent illustration of the National Delivery Model reflects 19 steps before obligation. FEMA, Public Assistance
Process Overview, Briefing Slides, January 16, 2020, slide 11. Provided to CRS by the FEMA Office of Congressional
and Legislative Affairs. Available to congressional offices upon request.
143 See, for example, former FEMA Administrator Brock Long, oral testimony, HSGAC, Culture of Preparedness, pp.
6-7.
144 CBO, Potential Increase in Hurricane Damage in the United States: Implications for the Federal Budget, June
2016, pp. 10-11 (hereinafter CBO, Hurricane Damage: Federal Budget).
145 CBO, Hurricane Damage: Federal Budget; Adam Rose et al., “The Role of a Deductible/Credit System for PostDisaster Public Assistance in Meeting Alternative Policy Goals,” Journal of Environmental Planning and
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Trends in PA Expenditures
Obligations by Category
Permanent work accounted for more than half ($62 billion, or 57.4% of total) of PA obligations
for projects from FY2000 through FY2020 (see Figure 8). Just under 40% of PA obligations ($40
billion, or 37.4% of total) supported emergency work projects. The remainder ($5.7 billion, or 5%
of total) reflects obligations for PA management costs, which are awarded as a proportion of PA
project obligations. The category of work claiming the largest share of obligations was Category
B—Emergency Protective Measures ($24.5 billion, or 23% of total). This trend may continue as
obligations accrue for Emergency Protective Measures authorized in response to the COVID-19
pandemic, which are not included in these figures. COVID-19 PA obligations (entirely for
Emergency Protective Measures) totaled more than $6 billion in FY2020 (see Appendix A).146
Figure 8. FEMA’s Public Assistance Program Obligations by Category, Fiscal Years
2000-2020
According to FEMA Data, as Share of Total Obligations
Source: CRS analysis of OpenFEMA, “Public Assistance Funded Projects—Details,” as of December 9, 2020.
Notes: Reflects sum of “federal share obligated” by “damage category code” according to FEMA designations,
less obligations for COVID-19 pandemic as reported in the source data through the “biological incident” tag.
CRS cannot verify the accuracy of FEMA data.
Obligations by Hazard Type
PA is an “all-hazards” program available to Applicants following a range of incidents including
environmental hazards, terrorist attacks, and industrial accidents. However, from FY2000FY2020, the largest portion of program dollars supported response and recovery from hurricanes
($75.6 billion, or 70% of total) as well as other flood-related events like severe storms ($13.7
billion, or 13% of total), floods ($5.1 billion, or 5% of total), and coastal storms and typhoons
Management, vol., 63, no. 12 (February 2020), pp. 2163-2193; FEMA, National Strategy Recommendations: Future
Disaster Preparedness, September 6, 2013, https://www.fema.gov/media-library-data/
bd125e67fb2bd37f8d609cbd71b835ae/FEMA%20National%20Strategy%20Recommendations%20(V4).pdf.
146 FEMA, Disaster Relief Fund: Monthly Report as of October 31, 2020, November 6, 2020, Fiscal Year 2021 Report
to Congress, p. 13, https://www.fema.gov/sites/default/files/2020-11/fema_disaster-relief-fund-report_11-2020.pdf.
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(see Figure 9). Fires (including wildfires and fires from certain explosions) also account for
significant expenditures ($8.0 billion, or 7.5% of total).147 Obligations for other weather- or
climate-related emergencies and major disasters (such as snow events, earthquakes, tornados, and
drought) each account for 1% or less of cumulative PA spending.
Technological failures, industrial accidents, and acts of violence similarly accounted for a small
fraction of overall spending. Terrorist attacks, including costs for the September 11, 2001 attacks
in New York and New Jersey, accounted for 4.3% of spending ($4.8 billion) from FY2000FY2020.148 A single chemical spill accounted for 0.0014% of spending. “Other” events including
power outages, the Columbia Space Shuttle explosions in Texas and Louisiana, a bridge collapse,
and a fertilizer plant explosion each accounted for less than 1% of funding.
Figure 9. FEMA’s Public Assistance Program Obligations by Hazard, Fiscal Years
2000-2020
According to FEMA Designation of “Incident Type” (in millions of dollars)
Source: CRS analysis of OpenFEMA, “Public Assistance Funded Projects—Details,” as of December 9, 2020.
Excludes obligations for COVID-19. CRS cannot verify the accuracy of FEMA data.
Notes: Reflects sum of “federal share obligated” by incident type, less obligations for COVID-19 pandemic as
reported in the source data through the “biological incident” tag. Categorization reflects FEMA’s designation of
“incident type,” which may include inconsistencies.
* FEMA data categorizes costs for the 9/11 terrorist attacks in New York and New Jersey as “Fire”. If
categorized as “Terrorist,” like costs for 9/11 terrorist attacks in Virginia, then the total costs for “Terrorist” are
approximately $3.2 billion and for “Fire” are approximately $4.8 billion.
147 FEMA data categorizes costs for the 9/11 terrorist attacks in New York and New Jersey as “Fire”. If these incidents
were categorized as “Terrorist,” as FEMA categorized 9/11 terrorist attacks in Virginia, then the total costs for
“Terrorist” are approximately $3.2 billion and for “Fire” are approximately $4.8 billion.
148 FEMA data categorizes costs for the 9/11 terrorist attacks in New York and New Jersey as “Fire”. If these incidents
were categorized as “Terrorist,” as FEMA categorized 9/11 terrorist attacks in Virginia, then the total costs for
“Terrorist” are approximately $3.2 billion and for “Fire” are approximately $4.8 billion.
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Obligations by State
The geography of PA obligations reflects spending by hazard and is concentrated around the Gulf
coast (see Figure 10). Louisiana, New York, Florida, Puerto Rico, and Texas account for the
greatest expenditures owing in part to their recoveries from major hurricanes, as well as New
York’s 9/11 terrorist attacks. California follows due largely to damages from recent wildfires.
Many other states and territories, by contrast, have received far fewer PA dollars.
Figure 10. FEMA’s Public Assistance Program Obligations by State and Territory,
Fiscal Years 2000-2020
According to FEMA Data
Source: CRS analysis of OpenFEMA, “Public Assistance Funded Projects—Details.” Reflects sum of “federal
share obligated” by state.
Note: Reflects sum of “federal share obligated” by state, less obligations for COVID-19 pandemic as reported in
the source data through the “biological incident” tag. CRS cannot verify the accuracy of FEMA data.
Congressional Considerations
Congress has addressed the PA Program repeatedly in hearings and legislation over the past 10
years. Additionally, GAO and the Office of the Inspector General (OIG) of the Department of
Homeland Security (DHS) have both conducted numerous overviews of the PA Program in the
past decade.
Seven persistent issues from these exchanges are summarized in the following sections.
Additional PA policy issues that have been identified but exceed the scope of this report include:
cancelled, disputed, improper, or noncompliant federal and local contracts for disaster
recovery work;149
149 See, for example, testimony of Rep. Bennie Thompson, House Homeland Security Committee, Lessons from the
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delayed, partial, or improper federal payments and reimbursements;150
inconsistent cost-share adjustments;151
deficiencies in the logistical management and distribution of PA Direct Federal
Assistance, including emergency commodities, personnel, and resources;152
delays and opacity with the Public Assistance Appeals process;153 and
management controls needed for PA informational technology. 154
Cost of PA Program
Congress may consider the recent discussion of PA expenditures,155 given their scale as well as
the general lack of restrictions on overall PA spending (see “PA Funding”). Further, multiple
federal budget and oversight agencies have cautioned that climate change and population growth
2017 Disasters; testimony of Rep. Peter King, House Homeland Security Committee, Road to Recovery, pp. 37-38;
DHS OIG, FEMA’s Public Assistance Grant to PREPA and PREPA’s Contracts with Whitefish and Cobra Did Not
Fully Comply with Federal Laws and Program Guidelines, OIG-20-57, July 27, 2020 (hereinafter DHS OIG, FEMA
Whitefish Contracts), https://www.oig.dhs.gov/sites/default/files/assets/2020-07/OIG-20-57-Jul20.pdf; GAO, Disaster
Assistance: FEMA Should Take Additional Actions to Strengthen Fraud Risk Management for Public Assistance
Emergency Work Grants, GAO-20-604, September 2020, https://www.gao.gov/assets/710/709754.pdf (hereinafter
GAO, FEMA Fraud Risk Management); U.S. Congress, House Subcommittee on Emergency Preparedness, Response,
and Recovery and House Subcommittee on Oversight, Management, and Accountability, FEMA Contracting:
Reviewing Lessons Learned from Past Disasters to Improve Preparedness, 116th Cong., 1st sess., May 9, 2019, H.Rept.
116-18.
150 See, for example, testimony of Rep. Gonzalez-Colon, U.S. Congress, House Committee on Transportation and
Infrastructure, Subcommittee on Economic Development, Public Buildings and Emergency Management, FEMA’s
Priorities for 2020 and Beyond, 116th Cong., 2nd sess., March 11, 2020, pp. 20-21; testimony of Rep. Mucarsel-Powell,
House Committee on Transportation and Infrastructure Committee, Disaster Preparedness: DRRA Implementation and
FEMA Readiness, 116th Cong., 1st sess., May 22, 2019, No. 116-18 (hereinafter House Transportation and
Infrastructure, DRRA Implementation), pp. 18-20.
151 GAO, Improved Criteria, pp. 33-37.
152 See GAO, COVID-19: Federal Efforts Could Be Strengthened by Timely and Concerted Actions, GAO-20-701,
September 21, 2020, https://www.gao.gov/products/GAO-20-701; DHS OIG, FEMA’s Logistics Supply Chain
Management System May Not Be Effective During a Catastrophic Disaster, OIG-14-151, September 2014,
https://www.oig.dhs.gov/assets/Mgmt/2014/OIG_14-151_Sep14.pdf; FEMA, 2017 Hurricane Season After-Action
Report, July 12, 2018.
153 GAO, Additional Actions Would Improve Data Quality and Timeliness of FEMA’s Public Assistance Appeals
Process, GAO-18-143, December 15, 2017 (hereinafter GAO, FEMA’s PA Appeals), https://www.gao.gov/products/
GAO-18-143; HSGAC, Stafford Act Reform, pp. 2, 7, 29-30, 35, 40, 42; DHS OIG, Opportunities to Improve FEMA’s
Public Assistance Appeals Process, OIG-11-49, March 2011, https://www.oig.dhs.gov/sites/default/files/assets/Mgmt/
OIG_11-49_Mar11.pdf.
154 GAO, Emergency Management: FEMA Has Made Progress, but Challenges and Future Risks Highlight Imperative
for Further Improvements, GAO-19-594T, June 12, 2019, pp. 15-16, 26-27 (hereinafter GAO, FEMA Progress),
https://www.gao.gov/assets/700/699640.pdf.
155 See, for example, Senate Committee on Homeland Security and Governmental Affairs, The Path to Efficiency:
Making FEMA More Effective For Streamlined Disaster Operations, 113th Cong., 2nd sess., July 24, 2014, S.Hrg. 113586, pp. 9-13 (hereinafter HSGAC, Path to Efficiency); GAO, FEMA Progress, pp. 17-18; CBO, Hurricane Damage:
Federal Budget, pp. 25-28; GAO, Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate
Change Risks, GAO-19-157SP, pp. 113-115, https://www.gao.gov/assets/700/697245.pdf; Lloyd Dixon, Jason Thomas
Barnosky, and Noreen Clancy, Insuring Public Buildings, Contents, Vehicles, and Equipment Against Disasters:
Current Practices of State and Local Government and Options for Closing the Insurance Gap, RAND Corporation,
October 2020 (hereinafter, RAND, Closing the Insurance Gap), https://www.rand.org/pubs/research_reports/RRA3321.html.
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in high-risk areas may create further federal fiscal exposure through PA.156 Congress and FEMA
have recently acted to control PA spending, authorizing Alternative Procedures and support for
insurance coverage and mitigation investments, as discussed below.
The Alternative Procedures pilot program enacted in SRIA modified PA procedures partly to
control costs of individual PA projects (for more information see below, “Alternative
Procedures”).157 Whether Alternative Procedures have actually reduced costs remains unclear.
FEMA and Congress have also promoted mitigation and insurance coverage among PA
Applicants in part to reduce future liability through the PA Program. The enactment of DRRA in
2018 included several provisions to promote mitigation, partly as a means to reduce post-disaster
recovery expenditures (see “Promoting Resilience Through PA”).158 FEMA‘s Risk Rating 2.0 will
update flood risk assessments and potentially broaden NFIP insurance requirements; FEMA
announced it will be effective in October 2021.159 This change may increase coverage among PAeligible facilities, thereby reducing the amount of future uninsured damages eligible for PA.
Given that PA obligations are currently concentrated in flood-related events (see Figure 9), the
consequences of these new requirements could be significant. These innovations may also
respond to the concern that PA policies—by providing PA for uninsured damages—may
disincentivize Applicants from undertaking mitigating measures or purchasing sufficient
insurance.160
Congress may consider proposals to address PA spending levels. PA expenditures are partly
determined by two critical factors: whether PA is authorized for a given incident, and the federal
cost share for that incident. FEMA recently initiated rulemaking to increase the damage
thresholds used to evaluate requests for PA, as recommended by GAO and analyzed by the
Congressional Budget Office (CBO).161 FEMA estimates that the proposed rule, had it been
156 GAO, Natural Hazard Mitigation: Various Mitigation Efforts Exist, but Federal Efforts Do Not Provide a
Comprehensive Strategic Framework, GAO-07-403, August 2007, pp. 11, 24-26, https://www.gao.gov/assets/270/
265689.pdf; CBO, Hurricane Damage: Federal Budget; GAO, Disaster Recovery: Recent Disasters Highlight
Progress and Challenges, GAO-20-183T, October 22, 2019, pp. 1-2 (hereinafter GAO, Disaster Recovery Progress),
https://www.gao.gov/assets/710/702173.pdf; GAO, Fiscal Exposure: Improving Cost Recognition in the Federal
Budget, GAO-14-28, October 2013, p. 7, https://www.gao.gov/assets/660/658620.pdf.
157 Section 428(c)(1) of the Stafford Act; 42 U.S.C. §5189f(c)(1).
158 See “Background and Need for Legislation” in U.S. Congress, House Committee on Transportation and
Infrastructure, Disaster Recovery Reform Act, report to accompany H.R. 4460, 115th Cong., 2nd sess., H.Rept. 1151098, part 1, pp. 15-20; U.S. Congress, Senate Committee on Homeland Security and Governmental Affairs, Disaster
Recovery Reform Act, report to accompany S. 3041, 115th Cong., 2nd sess., S.Rept. 115-446.
159 FEMA, “Risk Rating 2.0,” https://www.fema.gov/flood-insurance/work-with-nfip/risk-rating; FEMA “Risk Rating
2.0 Overview,” September 2019, https://www.fema.gov/media-library-data/1569002542461a458061bb06a2d7cf6dbdf83bbd8d763/RiskRatingOverview_May2019_to_Sept2019.pdf; CBO, Expected Costs of
Damage from Hurricane Winds and Storm-Related Flooding, April 2019, pp. 24-25 (hereinafter CBO, Expected
Costs).
160 For concerns, see, for example, Meri Davlasheridze and Qing Miao, “Does Governmental Assistance Affect Private
Decisions to Insure? An Empirical Analysis of Flood Insurance Purchases,” Land Economics, vol. 95, no. 1, February
2019, pp. 124-145; DHS OIG, FEMA’s Process for Tracking Public Assistance Insurance Requirements, OIG-12-18,
December 2011, https://www.oig.dhs.gov/assets/Mgmt/OIG_12-18_Dec11.pdf (hereinafter DHS OIG, FEMA PA
Insurance Requirements 2011); Office of Management and Budget, A Budget for America’s Future: Analytical
Perspectives, Fiscal Year 2021 Budget of the U.S. Government, p. 112, https://www.whitehouse.gov/omb/analyticalperspectives. Other research has found that PA may not disincentivize insurance uptake or mitigation. See literature
review and survey data in RAND, Closing the Insurance Gap, pp. 52-58.
161 See CRS Insight IN11534, Authorizing Stafford Act Public Assistance, by Erica A. Lee; FEMA, DHS, “Proposed
Rule: Cost of Assistance Estimates in the Disaster Declaration Process for the Public Assistance Program,” 85 Federal
Register 80719, December 14, 2020; GAO, Improved Criteria, pp. 24-28; CBO, Hurricane Damage: Federal Budget,
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finalized, would have reduced the number of major disaster declarations authorizing PA by
approximately 27% and reduced the total amount of PA provided by several billion dollars over
the rule’s study period.162 As a result, more disaster relief costs may be borne by nonfederal
entities.163 PA expenditures are currently concentrated in areas affected by the most costly
disasters, and efforts to increase the thresholds to warrant PA may further concentrate PA
expenditures (see Figure 10).164 FEMA anticipates that the proposed rulemaking, if enacted, may
allow FEMA to focus resources on more severe events rather than smaller disasters.165 States, as
defined by the Stafford Act, could deploy or develop their resources to independently manage
smaller incidents.166
If Congress seeksto further reduce PA expenses, Congress could consider additional ways to shift
a greater share of the costs of disaster recovery back to nonfederal entities, for example, by
reducing the minimum federal cost share of PA, encouraging the use of state and territorial rainy
day funds and purchase of reinsurance or catastrophe bonds, or implementing a deductible that
each Recipient must meet before PA is authorized.167
Congress may consider the extent to which nonfederal governments already absorb the rising
costs of disasters when reviewing proposals to reduce PA spending.168 Recent research has shown
that SLTT spending on response and recovery is highly variable and inconsistently tracked.169 In
2003, FEMA’s Emergency Management Institute estimated that 3,500-3,700 incidents per year
are managed without requests for federal assistance.170 Congress may consider in particular the
p. 27.
162 FEMA, “Proposed Rule: Cost of Assistance,” p. 80732.
163 Ibid.
164 For more information, see CRS Report R45484, The Disaster Relief Fund: Overview and Issues, by William L.
Painter, pp. 20-22.
165 FEMA, “Proposed Rule: Cost of Assistance Estimates in the Disaster Declaration Process for the Public Assistance
Program,” 85 Federal Register 80724, December 14, 2020.
166 Ibid.; see also GAO, Improved Criteria, Thomas Frank, “Why the U.S. Disaster Agency Is Not Ready for
Catastrophes,” Scientific American, August 20, 2019.
167 GAO, Improved Criteria, p. 49; HSGAC, Path to Efficiency, pp. 8-10; CBO, Hurricane Damage: Federal Budget,
p. 25; CBO, Expected Costs, pp. 27-29; Carolyn Kousky, Brettle Lingle, and Leonard Shabman, “FEMA Public
Assistance Grants: Implications of a Disaster Deductible,” Policy Brief No. 16-04, Resources for the Future, April
2016, https://media.rff.org/documents/RFF-PB-16-04.pdf (hereinafter Kousky et al, “Disaster Deductible”).
168 HSGAC, Path to Efficiency, pp. 10-11; Executive Director of the National Association of Counties (NACo) Matt
Chase, Letter to FEMA Administrator Craig Fugate, March 21, 2016, https://www.naco.org/sites/default/files/
attachments/JPS/NACo%20Disaster%20Deductible%20ANPRM%20Comments.pdf; PEW Charitable Trusts, How
States Pay for Natural Disasters in an Era of Rising Costs, May 12, 2020, https://www.pewtrusts.org/en/research-andanalysis/reports/2020/05/how-states-pay-for-natural-disasters-in-an-era-of-rising-costs (hereinafter PEW, How States
Pay); Pew Charitable Trusts, How States Can Manage the Challenges of Paying for Natural Disasters, September 16,
2020, https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2020/09/how-states-can-manage-the-challengesof-paying-for-natural-disasters (hereinafter PEW, States Manage Challenges). For further information and discussion,
see comments for Proposed Rule on Cost of Assistance Estimates, available at https://www.regulations.gov/document/
FEMA-2020-0038-0001/comment.
169 Pew Charitable Trusts, What We Don’t Know About State Spending on Natural Disasters Could Cost Us, June 2018,
p. 10, https://www.pewtrusts.org/-/media/assets/2018/06/statespendingnaturaldisasters_v4.pdf; GAO, Budgeting for
Disasters: Approaches to Budgeting for Disasters in Selected States, GAO-15-424, March 2015, https://www.gao.gov/
assets/670/669277.pdf.
170 By comparison, Presidents issued an annual average of 146 new Stafford Act declarations (emergencies, major
disasters, and Fire Management Assistance Grants) between 2010 and 2020 to which FEMA responded, while also
supporting response to incidents that did not receive Stafford Act declarations as well as response from prior year
incidents (CRS Analysis of data provided by FEMA Office of Legislative and Congressional Affairs, as of January 15,
2021). FEMA Emergency Management Institute, A Citizen’s Guide to Disaster Assistance, Independent Study IS-7,
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consequences for state and local budgets strained by the COVID-19 pandemic,171 as well as the
consequences for communities forgoing federal assistance that are smaller, rural, or have fewer
resources.172
Conversely, Members of Congress who wish to provide further support to nonfederal
governments through PA may consider raising the minimum federal cost share in the Stafford Act
above 75% for all or some PA costs (for example, for emergency work).
If Congress does seel to reduce federal cost support for disaster recovery, Congress may consider
providing additional funds for mitigation projects to help reduce losses and outlays at every level
of government to mitigate the resulting burden to nonfederal governments (see section on
“Promoting Resilience Through PA”).173
Oversight Challenges
Congress has expressed persistent interest in the oversight of the PA Program. GAO and the DHS
OIG have found that FEMA’s rapid response to disasters and emergencies may undermine robust
oversight and fraud prevention among PA Applicants.174
September 2003, pp. 3-4, https://training.fema.gov/emiweb/downloads/is7complete.pdf; cited in testimony of Sallie
Clark, then President of National Association of Counties, U.S. Congress, House Committee on Transportation and
Infrastructure, Controlling the Rising Cost of Federal Response to Disaster, hearing, 114th Cong., 2nd sess., May 12,
2016, H.Rept. 114-40, p. 13, https://www.govinfo.gov/content/pkg/CHRG-114hhrg20214/pdf/CHRG114hhrg20214.pdf.
171 For more information, see CRS Report R46298, General State and Local Fiscal Assistance and COVID-19:
Background and Available Data, by Grant A. Driessen; and “How the COVID-19 Pandemic is Transforming State
Budgets,” Urban Institute, updated March 12, 2021, https://www.urban.org/policy-centers/cross-center-initiatives/stateand-local-finance-initiative/projects/state-fiscal-pages-covid-edition. See also CRS Insight IN11534, Authorizing
Stafford Act Public Assistance, by Erica A. Lee. See also Proposed Rule on Cost of Assistance Estimates, comment #
FEMA-2020-0038-0032 by representatives of Pew Charitable Trust, p. 5, and comment # 2020-0038-0028 by
representatives of the U.S. Council of the International Association of Emergency Managers,
https://www.regulations.gov/document/FEMA-2020-0038-0001/comment.
172 National Advisory Committee Report to the FEMA Administrator, November 2020, pp. 12-13,
https://www.fema.gov/sites/default/files/documents/fema_nac-report_11-2020.pdf; Simone J. Domingue and
Christopher T. Emrich, “Social Vulnerability and Procedural Equity: Exploring the Distribution of Disaster Aid Across
Counties in the United States,” The American Review of Public Administration, June 18, 2019; Rebecca Hersher, “How
Federal Disaster Money Favors the Rich,” NPR, March 5, 2019; Sen. Dick Durbin, “Durbin, Duckworth Work to Bring
Fairness to FEMA Disaster Declaration Process,” webpage, June 13, 2019, https://www.durbin.senate.gov/newsroom/
press-releases/durbin-duckworth-work-to-bring-fairness-to-fema-disaster-declaration-process. Rep. Rodney Davis,
“Davis Urges FEMA to Consider Local Impact When Determining Latest Illinois Disaster Request,” March 9, 2016,
https://rodneydavis.house.gov/news/documentsingle.aspx?DocumentID=398970. See also Proposed Rule on Cost of
Assistance Estimates, comments # FEMA-2020-0038-003, submitted December 17, 2020, and # FEMA-2020-00380020, submitted February 5, 2021, https://www.regulations.gov/document/FEMA-2020-0038-0001/comment.
173 Governors Steve Bullock and Brian Sandoval on behalf of the National Governor’s Association (NGA), submitted
testimony, and former FEMA Administrator Brock Long, testimony, HSGAC, Prioritizing Preparedness, pp. 5, 61-62;
CBO, Hurricane Damage, pp. 3, 28; CBO, Expected Costs. See also concerns about the effects of reducing PA
declarations on mitigation investments in Proposed Rule on Cost of Assistance Estimates, comment # FEMA-20200038-0032 by representatives of Pew Charitable Trust, pp. 4-5, and comment # FEMA-2020-0038-0025 by
representatives of South Carolina Emergency Management Division, p. 1, https://www.regulations.gov/document/
FEMA-2020-0038-0001/comment. See also National Governor’s Association, “Coalition Letter On FEMA’s Notice Of
Proposed Rulemaking: Cost Of Assistance Estimates In The Disaster Declaration Process For The Public Assistance
Program,” March 5, 2021, https://www.nga.org/advocacy-communications/letters-nga/coalition-letter-fema-assistanceestimates/.
174 DHS OIG, FEMA Must Take Additional Steps to Demonstrate the Importance of Fraud Prevention and Awareness
in FEMA Disaster Assistance Programs, July 24, 2019, pp. 2, 6-7 (hereinafter DHS OIG, FEMA Fraud Prevention),
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One factor that contributes to the challenges of PA oversight is the use of contractors to execute
eligible work. The House Committee on Oversight and Reform reported that 90% of PA funds
reimburse Applicants for procured goods or services.175 In these cases, federal funds move
between four discrete entities: FEMA obligates funds to the Recipient, the Recipient reimburses
the Applicant, who has paid a contractor for the cost of completed work. Tracking PA spending
and compliance through so many transactions over several years requires considerable effort. In
the past several years, the DHS OIG identified more than a dozen FEMA awards with contract
compliance issues, including unreasonable costs and deficient oversight.176
Additionally, the DHS OIG has identified weaknesses in FEMA’s enforcement of the requirement
that PA Applicants obtain and maintain insurance for PA-funded projects.177 The OIG
recommended that FEMA improve oversight of insurance coverage and insurance proceeds for
PA-funded facilities through enhancements to PA information systems.178 Congress may monitor
FEMA’s progress on implementing these recommendations.
In 2018, Congress acted to increase the transparency of the PA Program in DRRA. As required by
DRRA, FEMA provides publicly available data on PA obligations.179 As of October 2019, FEMA
planned to publish information on Applicant contracts over $1 million, also required by DRRA.180
However, PA obligations may not clearly reflect the status of PA projects and broader recovery
efforts. For example, project funding may be fully obligated long before the completion of the onthe-ground reconstruction work. Congress may consider requesting other recovery information
that is currently not publicly or readily available (e.g., project progress reports, project appeals
documents, facility operability metrics). However, Congress may also consider the administrative
burden that more comprehensive reporting requirements may put on FEMA, Recipients, or local
officials, and how such a volume of complex data may be utilized to conduct oversight.
https://www.oig.dhs.gov/sites/default/files/assets/2019-07/OIG-19-55-Jul19.pdf; GAO, FEMA Fraud Risk
Management, pp. 2-3.
175 U.S. House of Representatives Committee on Oversight and Government Reform, Recurring Problems Hinder
Federal Disaster Response and Recovery Efforts, Majority Report, October 2018, p. 28 (hereinafter House Oversight,
Recurring Problems).
176 See DHS OIG, “Audits, Inspections, and Evaluations,” https://www.oig.dhs.gov/reports/audits-inspections-andevaluations?field_dhs_agency_target_id=2&field_fy_value=All. Examples include DHS OIG, Pre-Disaster Debris
Removal Contracts in Florida, OIG-20-44, August 11, 2020, https://www.oig.dhs.gov/sites/default/files/assets/202008/OIG-20-44-Jul20.pdf; FEMA Should Recover $216.2 Million Awarded to the Recovery School District in Louisiana
for Hurricane Katrina, OIG-20-63, September 15, 2020, https://www.oig.dhs.gov/sites/default/files/assets/2020-09/
OIG-20-63-Sep20.pdf; FEMA Whitefish Contracts; FEMA’s Public Assistance Grant to PREPA and PREPA’s
Contracts with Whitefish and Cobra Did Not Fully Comply with Federal Laws and Program Guidelines, OIG-20-57,
July 27, 2020, https://www.oig.dhs.gov/sites/default/files/assets/2020-07/OIG-20-57-Jul20.pdf.
177 Submitted testimony of OIG Representative Matt Jadacki, HSGAC, Stafford Act Reform, pp. 4-5; DHS OIG,
Verification Review: FEMA’s Lack of Process for Tracking Public Assistance Insurance Requirements Places Billions
of Tax Dollars at Risk, OIG-17-50-VR, June 9, 2017, https://www.oig.dhs.gov/sites/default/files/assets/2017/OIG-1750-VR-Jun17.pdf (hereinafter DHS OIG, Lack of Progress); DHS OIG, Tracking PA Insurance 2011.
178 DHS OIG, Lack of Progress, p. 2.
179 §1224 of DRRA, P.L. 115-254, adding a new §430 of the Stafford Act, P.L. 93-288, as amended; 42 U.S.C. §5189h;
FEMA, Disaster Recovery Reform Act (DRRA) Annual Report, October 2019, p. 20, (hereainafter FEMA, DRRA
Annual Report 2019), https://www.fema.gov/sites/default/files/2020-07/fema_DRRA-annual-report_2019.pdf. See for
example, OpenFEMA, “Public Assistance Funded Projects-Details.”
180 §1224 of DRRA, P.L. 115-254, adding a new §430 of the Stafford Act, P.L. 93-288, as amended; 42 U.S.C. §5189h;
FEMA, DRRA Annual Report 2019, p. 20.
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Promoting Resilience Through PA
Some observers have raised concerns that PA may increase the casualties and costs of future
hazards by encouraging reconstruction in disaster-prone areas. For example, CBO has found that
federal disaster assistance may subsidize growth in disaster-prone areas by shielding inhabitants,
including PA Applicants, from the full costs of response and recovery.181 Before recent legislative
changes, some Members of Congress raised concerns that PA may provide funding to rebuild
facilities to predisaster condition—even if those facilities were subject to weak building codes
and/or situated in disaster-prone areas. As Representative DeFazio explained:
As I have noted many times before, it is nonsensical that the Federal Government pays to
rebuild communities after a disaster back to inadequate standards only to have those
facilities destroyed in another disaster with the Federal Government once again coming in
and building back to the original standard as opposed to a more resilient and more robust
standard. It is time to get smarter about how we respond and how we rebuild after
disasters.182
The enactment of DRRA in 2018 revised Stafford Act authorities to promote resilience in
federally-funded structures.183 First, DRRA authorized the provision of PA to pay for the costs
required to adopt, implement, and enforce building codes on PA projects—supporting resilience
and hazard-resistant building across a community.184 DRRA also authorized FEMA to provide PA
to reconstruct disaster-damaged facilities in accordance with “the latest published editions of
relevant consensus-based codes, specifications, and standards that incorporate the latest hazardresistant designs….”185
These enhanced authorities may reduce disaster costs and casualties over time, particularly given
the risks of future damages exacerbated by climate change.186 The Multi-Hazard Mitigation
Council estimates that each federal grant dollar invested in disaster mitigation projects may save
an average of six dollars in post-disaster reconstruction costs.187 For this reason, the
implementation of DRRA may reduce future PA expenditures for response and recovery costs.
FEMA has begun implementing many DRRA amendments to promote resilient PA-funded
reconstruction, including the ability to receive PA to rebuild to the latest hazard-resistant codes.188
181 CBO, Hurricane Damage: Federal Budget, p. 25.
182 Rep. Peter DeFazio, oral testimony, HSGAC, Prioritizing Preparedness, pp. 6-7.
183 U.S. Congress, House Committee on Transportation and Infrastructure, Disaster Recovery Reform Act, report to
accompany H.R. 4460, 115th Cong., 2nd sess., H.Rept. 115-1098, part 1 (Washington, DC: GPO, 2018), pp. 15-16; see
also U.S. Congress, Senate Committee on Homeland Security and Governmental Affairs, Disaster Recovery Reform
Act of 2018, report to accompany S. 3041, 115th Cong., 2nd sess., S.Rept. 115-446, (Washington, DC: GPO, 2018), pp.
2-4.
184 §1206(b) of DRRA, P.L. 115-254, as it amends §406(a)(2) of the Stafford Act, P.L. 93-288, as amended, 42 U.S.C.
§5172(a)(2).
185 §1235(b) of DRRA, Division D of P.L. 115-254, as it amends §406(e)(1)(A) of the Stafford Act, P.L. 93-288, as
amended, 42 U.S.C. §5172(e)(1)(A).
186 CBO, Expected Costs, pp. 4, 6-7, 25-27; International Panel on Climate Change, Climate Change 2014: Impacts,
Adaptation, and Vulnerability: Summary for Policymakers, Cambridge: Cambridge University Press, pp. 1-32.
187 Multi-Hazard Mitigation Council of the National Institute of Building Sciences, Natural Hazard Mitigation Saves:
2019 Report, p. 1, https://cdn.ymaws.com/www.nibs.org/resource/resmgr/reports/mitigation_saves_2019/
mitigationsaves2019report.pdf (hereinafter Mitigation Council, Mitigation Saves). Actual savings may vary depending
on the occurrence, severity, location of future disasters and actual federal relief outlays. See GAO, Natural Disasters:
Economic Effects of Hurricanes Katrina, Sandy, Harvey, and Irma, GAO-20-633R, September 10, 2020, p. 11.
188 §1235(b) of DRRA, P.L. 115-254, as it amends §406(e)(1)(A) of the Stafford Act, P.L. 93-288, as amended, 42
U.S.C. §5172(e)(1)(A); FEMA, “Consensus-Based Codes, Specifications and Standards for Public Assistance,” FEMA
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Congress may consider additional options to promote mitigation through PA, particularly because
some nonfederal mitigation projects have been reduced as a result of COVID-19 outlays.189 For
example, Congress could consider increasing the allowable cost share for PA mitigation
projects.190 Alternatively, Congress may consider whether to impose restrictions on PA in areas
prone to nonflood hazards (the Stafford Act already restricts PA in high-risk flood zones.)191
Congress may also review FEMA’s restrictions on the relocation of facilities sited in disasterprone areas.192 Some nonfederal officials may be concerned that mitigation is costly, overly
burdensome, or may detract from other economic development goals.193 Congress may also
consider whether FEMA’s other mitigation programs are more effective vehicles for mitigation
policies and funds.194
Project Execution Delays
Recovery delays associated with FEMA’s multi-step PA application and review process has
attracted some concern. Some Recipients and Applicants report that the program is overly
complex and time-intensive, and find that changing guidance impedes project execution.195
As noted earlier, regulations require that emergency work projects be completed within 6 months
and permanent work within 18 months from the date of declaration, though Recipients and FEMA
may grant extensions.196 Publicly available data suggests that PA projects commonly exceed the
timeframes established in regulations. For example, FEMA data on permanent work projects
including mitigating measures reflects that approximately 60% of project closeout dates exceeded
the 18-month deadline.197 Additionally, GAO and the DHS OIG have documented PA project
delays multiple times, particularly following severe events.198
Recovery Interim Policy FP-104-009-11 Version 2, December 2019.
189 Lauren Sommer, “California Was Set to Spend over $1 Billion to Prevent Wildfires. Then Came COVID-19,” NPR,
June 7, 2020.
190 The Stafford Act currently authorizes FEMA to increase the federal cost share for projects the increase readiness or
resilience from 75% to 85%; §406(b)(3) of the Stafford Act; 42 U.S.C. §5172(b)(3).
191 Restrictions on PA in high-risk flood zones may be found at Section 406(d) of the Stafford Act, 42 U.S.C. §5172(d).
Kousky, Carolyn, “Managing shoreline retreat: A US perspective,” Climate Change Vol. 124, pp. 9-20, 2014;
Testimony of Alice C. Hill, Council on Foreign Relations, U.S. Congress, House of Representatives Select Committee
on the Climate Crisis, Creating a Climate Resilient America: Reducing Risks and Costs, 116th Cong., 1st sess.,
November 20, 2019, No. 116-15, p. 46 (hereinafter House Committee on Climate Crisis, Climate Resilient America).
192 Testimony of former FEMA Administrator Craig Fugate, House Select Committee on the Climate Crisis, Climate
Resilient America, p. 38; FEMA, PAPPG 2020, pp. 160-161.
193
GAO, Disaster Resilience: Actions Are Underway, but Federal Fiscal Exposure Highlights the Need for Continued
Attention to Longstanding Challenges, GAO-14-603T, May 2014, pp. 4-6; National Research Council, Disaster
Resilience: A National Imperative, Washington, DC: The National Academies Press, 2012.
194 See CRS Insight IN11515, FEMA Pre-Disaster Mitigation: The Building Resilient Infrastructure and Communities
(BRIC) Program, by Diane P. Horn; CRS Insight IN11187, Federal Emergency Management Agency (FEMA) Hazard
Mitigation Assistance, by Diane P. Horn.
195 See, for example, House Homeland, FEMA Readiness, pp. 27-29.
196 44 C.F.R. §206.204(c).
197 CRS analysis of data provided by FEMA Office of Congressional and Legislative Affairs, as of January 2021.
198 For example, GAO, Puerto Rico Hurricanes 2019; GAO, FEMA Actions, pp. 27-29; DHS OIG, FEMA’s
Longstanding IT Deficiencies Hindered 2017 Response and Recovery Operations, OIG-19-58, August 27, 2019, pp.
17-19, https://www.oig.dhs.gov/sites/default/files/assets/2019-08/OIG-19-58-Aug19.pdf.
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In 2017, FEMA implemented a new “National Delivery Model” to streamline and improve the
complicated, multi-step PA grant review process and improve workforce readiness.199 The new
system aimed to expedite and standardize PA project review by enlisting experts to formulate and
process PA projects throughout the United States. Among the features of the new system is a
program delivery manager who serves as a single point of contact for Applicants, a new digital
information system for PA grants (the PA Grants Portal),200 and the centralization of many PA
project scoping, costing, and review steps in Consolidated Resource Centers (CRCs; four are in
operation nationwide).201 After testing the National Delivery Model from 2015 to 2017, FEMA
implemented the system in November 2017.202
GAO found that some Applicants reported these initiatives increased the ease of the PA
application process, particularly the availability of digital documentation submission and a single
FEMA point of contact.203 However, others reported persistent problems with the model,
including delays with FEMA project reviews and reimbursement processing.204 GAO
subsequently recommended, and FEMA implemented, multiple improvements to its PA
information technology system.205 FEMA has also announced additional initiatives to expedite
PA, including simplified PA applications, remote damage assessments, and simplified “selfcertification” for Applicants completing “small projects.”206 Some of these initiatives have
already proved successful, according to FEMA; for example, the small project certification
process reportedly reduced review time by 50%.207 FEMA employed a reportedly simplified PA
application for COVID-19 costs, and expanded the use of remote disaster assessments during the
pandemic.208
199 FEMA, “Public Assistance Delivery Model,” fact sheet, https://www.fema.gov/sites/default/files/2020-07/
fema_pa_delivery-model_factsheet.pdf; U.S. Congress, House Committee on Homeland Security, Assessing FEMA’s
Readiness for Future Disasters, 116th Cong., 1st sess., June 12, 2019, Serial No. 116-26, pp. 27-28 (hereinafter House
Homeland, FEMA’s Readiness).
200 FEMA, PA Grants Portal, https://grantee.fema.gov/.
201 GAO, PA Redesign, p. 15. For more information on the PA Grants portal, see FEMA, PAPPG 2020, p. 35; FEMA,
Grants Portal, https://grantee.fema.gov/; FEMA, “How to Apply for Public Assistance,” https://www.fema.gov/
assistance/public/apply; FEMA, “PA Process Overview,” briefing slides January 16, 2020, provided by FEMA Office
of Congressional and Legislative Affairs to CRS (hereinafter FEMA “PA Process Overview”). Available to
congressional staff upon request.
202 FEMA “PA Process Overview, p. 44.
203 GAO, Wildfire Disasters: FEMA Could Take Additional Actions to Address Unique Response and Recovery
Challenges, GAO-20-5, October 2019, pp. 19-20, https://www.gao.gov/assets/710/702013.pdf (hereinafter GAO,
Wildfires: Additional Actions); GAO, PA Redesign, p. 15; GAO, 2017 Hurricanes and Wildfires Initial Observations
on the Federal Response and Key Recovery Challenges, GAO-18-472, September 2018, pp. 58-59,
https://www.gao.gov/assets/700/694231.pdf (hereinafter GAO, 2017 Hurricanes and Wildfires).
204 House Homeland, FEMA’s Readiness, pp. 27-28; GAO, 2017 Hurricanes and Wildfires, pp. 42, 59.
205 Testimony of Former FEMA Administrator Jeffrey Byard, U.S. Congress, House Committee on Transportation and
Infrastructure, An Assessment of Federal Recovery Efforts from Recent Disasters, 116th Cong., 1st sess., October 22,
2019, no. 116-38, p. 28 (hereinafter House T&I, Recent Disasters).
206 Ibid., pp. 143-144. Small projects are those under $132,800 for FY2021 application procedures. FEMA, “Per Capita
Impact Indicator and Project Thresholds,” https://www.google.com/search?q=fema+per+capita+indicator&rlz=
1C1CHBD_enUS879US879&oq=FEMA+per+capita+indicator&aqs=
chrome.0.0i457j0i22i30j69i64j69i59j69i60j69i65j69i60.2690j0j7&sourceid=chrome&ie=UTF-8.
207 Ibid.
208 FEMA, “Public Assistance Simplified Application,” April 14, 2020, https://www.fema.gov/fact-sheet/publicassistance-simplified-application; FEMA, “COVID-19 Pandemic Operational Guidance for the 2020 Hurricane
Season,” May 2020, p. 14, https://www.fema.gov/media-library-data/1589997234798adb5ce5cb98a7a89e3e1800becf0eb65/2020_Hurricane_Pandemic_Plan.pdf.
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Congress may consider additional options to expedite project execution. Some have proposed
reviewing the PA reimbursement process to remedy cash flow constraints that stall reconstruction
progress while Applicants await reimbursement.209 One option includes broadening access to cash
advances, which are currently only permitted in limited circumstances for large projects (those
exceeding $132,800 for FY2021).210 FEMA does permit Applicants completing small projects to
access funds as soon as they are obligated, reducing complications and delays (see Appendix
B).211 However, Congress may consider that advancing funds could cause additional oversight
challenges, as may other efforts to streamline PA application review. State and local stakeholders
have also proposed that FEMA permit PA for management costs to be shared across disasters,
reducing documentation burdens for Recipients and review time for FEMA.212 Additionally,
remedies for federal, state, and local capacity shortfalls may reduce project completion times and
expedite recovery (see next section on “Strained Federal, State, and Local Workforce Capacity”).
Strained Federal, State, and Local Workforce Capacity
The federalist design of the PA Program requires considerable involvement of both federal and
SLTT officials throughout project execution. Applicants must understand program expectations,
eligibility requirements, and rules and manage large-scale, multi-year projects. FEMA officials
must conduct site inspections, assist Applicants and Recipients in program navigation, scope
projects, estimate costs, and conduct compliance reviews. Recipients participate in many of these
activities and additionally manage many PA awards throughout the jurisdiction.213 The demand on
participating agencies across all levels of government—and incapacity to meet this demand—is a
source of persistent concern among some stakeholders and Members of Congress.214
According to multiple reports and testimony by GAO and the DHS OIG over the past 10 years,
high turnover rates, lack of adequate training, and insufficient expertise among the FEMA PA
workforce consistently contributed to recovery delays.215 Both oversight agencies have made
209 See, for example, testimony by Rep. Plaskett, Rep. Titus, and Rep. Garamendi, House T&I, DRRA Implementation,
pp. 26-27, 33, 119; testimony by Rep. Garamendi, House T&I, Recent Disasters, pp. 44-45.
210 See 44 C.F.R. §206.205(b); 2 C.F.R. §200.305; email from FEMA Office of Congressional and Legislative Affairs
to CRS, September 10, 2020. FEMA defines project size based on an annually adjusted cost threshold. In FY2021, a
small project is a project above $3,320 and equal to or less than $132,800. FEMA, “Per Capita Impact Indicator and
Thresholds,” https://www.fema.gov/assistance/public/applicants/per-capita-impact-indicator.
211 44 C.F.R. §206.205(a); 2 C.F.R. §200.305.
212 Testimony, National Emergency Management Agency (NEMA) representative Sima Merick, House T&I, DRRA
Implementation, pp. 44-45, 117, 119.
213 Erin J. Greten and Ernest B. Abbott, “Representing States, Tribes, and Local Governments Before, During, and
After a Presidentially-Declared Disaster,” The Urban Lawyer, vol. 48, no. 3 (Summer 2016), pp. 489-561.
214
See, for example, GAO, PA Redesign, pp. 2-3; House T&I, DRRA Implementation, pp. 116, 125; GAO
Representative Chris Currie, testimony, House T&I, Recent Disasters, pp. 36-38.
215 GAO, Hurricane Sandy: An Investment Strategy Could Help the Federal Government Enhance National Resilience
for Future Disasters, GAO-15-515, July 2015, pp. 25-26, 31, https://www.gao.gov/assets/680/671796.pdf (hereinafter
GAO, Resilience in Hurricane Sandy); Submitted Testimony OIG Representative Matt Jadacki, HSGAC, Stafford Act
Reform, pp. 42-44; GAO, PA Redesign, pp. 2-3, 5, 12. Department of Homeland Security, Office of Inspector General
(OIG), FEMA Can Enhance Readiness with Management of Its Disaster Incident Workforce, OIG-16-127-D,
September 2, 2016, pp. 7, 11, https://www.oig.dhs.gov/assets/GrantReports/2016/OIG-16-127-D-Sep16.pdf
(hereinafter DHS OIG, FEMA Workforce); GAO, 2018 Pacific Disasters, pp. 17-18; GAO, Wildfires: Additional
Actions, pp. 19-21; House Homeland, FEMA’s Readiness, pp. 32-33; GAO, Puerto Rico Hurricanes 2019, pp. 21-22;
GAO, 2017 Hurricanes and Wildfires, p. 112; GAO, FEMA Disaster Workforce: Actions Needed to Address
Deployment and Staff Development Challenges, GAO-20-360, May 2020 (hereinafter GAO, FEMA Workforce),
https://www.gao.gov/assets/710/706619.pdf); GAO, FEMA Progress, pp. 21-26.
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several recommendations to address these concerns, including increasing staff, training, and
establishing a qualification-tracking system.216
Insufficient capacity among PA Recipients and Applicants also reportedly delays recovery and
undermines compliance. GAO and DHS OIG have concluded that insufficient familiarity with PA
Program and eligibility rules among SLTT officials slows recovery and increases compliance
violations.217 Nine out of ten surveyed tribal officials reported to GAO that a lack of capacity and
the need for technical assistance from FEMA was a major factor in decisions to apply for FEMA
aid as a Recipient or as an Applicant through a state’s request.218 Lack of state and local capacity
may be a particular problem in cases of catastrophic disasters, as in the case of Puerto Rico’s
recovery from the 2017 hurricanes.219 Local officials may also lack the capacity and expertise
required to identify and complete mitigation projects through PA, resulting in missed
opportunities to rebuild resiliently.220 Further, insufficient construction workforce availability has
complicated recovery from large incidents in relatively remote areas like the Virgin Islands
(recovering from hurricanes in 2017) and the Commonwealth of Northern Mariana Islands and
Guam (both recovering from typhoons in 2018).221
FEMA has responded to a number of these workforce issues, for example, by enlisting PA experts
in centralized project review as part of the National Delivery Model in 2017,222 hiring an
additional 1,200 PA staff in 2018,223 and enhancing training and performance management
systems for FEMA staff.224 In 2019 and 2020, GAO evaluated FEMA’s improvements to its PA
disaster workforce and deployment challenges. GAO recognized that FEMA had implemented
new staffing models to address appeals processing, developed new regional workforce plans, and
enhanced coach-and-evaluator training.225
Despite these changes, workforce incapacity continues to raise concern among FEMA personnel,
PA Recipients, and Applicants.226 For example, new hires have sometimes received insufficient
training in PA policies.227 As a result, FEMA may deploy field personnel unable to fulfill certain
216 GAO, FEMA Workforce, p. 16, 44-45; DHS OIG, FEMA Workforce, p. 4.
217 GAO, 2018 Pacific Disasters, pp. 18-20. DHS OIG, Capacity Audit of FEMA Grant Funds Awarded to the Puerto
Rico Department of Transportation and Public Works, OIG-20-25, April 9, 2020.
218 GAO, Emergency Management: Implementation of the Major Disaster Declaration Process for Federally
Recognized Tribes, GAO-18-443, May 2018, pp. 17-20, https://www.gao.gov/assets/700/691962.pdf.
219 For example, the Puerto Rico Electric Authority required additional resources to execute PA projects to restore the
territory’s electric grid following the 2017 hurricanes. Testimony of Carlos Torres, Puerto Rico Power Restoration
Coordinator and consultant for Edison Electric Institute, House Committee on Energy and Commerce, “Puerto Rico’s
Electric Infrastructure,” hearing, 115th Cong., 2nd sess., April 11, 2018, p. 54.
220 GAO, Resilience in Hurricane Sandy, pp. 42-44.
221 GAO, 2018 Pacific Disasters, pp. 19-20; GAO, U.S. Virgin Islands Recovery: Additional Actions Could Strengthen
FEMA’s Key Disaster Recovery Efforts, pp. 20-21.
222 GAO, PA Redesign, p. 21.
223 GAO, 2018 Pacific Disasters, p. 18.
224 FEMA Representative Joseph Nimmich, Testimony, HSGAC, The Path to Efficiency, pp. 4-5; GAO, FEMA
Progress, pp. 17-18.
225 GAO, FEMA Disaster Workforce: Actions Needed to Address Deployment and Staff Development Challenges,
GAO-20-360, May 2020, pp. 3, 26, 22-23, 29-31, https://www.gao.gov/assets/710/706619.pdf (hereinafter GAO,
FEMA Workforce).
226 GAO, FEMA Progress, pp. 25-26.
227 GAO, 2018 Pacific Disasters, p. 18.
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responsibilities, including PA administration.228 FEMA has also acknowledged that the
implementation of the National Delivery Model increases Applicants’ responsibility for PA
project execution—possibly compounding the strain on the local workforce.229 Where Applicants
are not sufficiently trained, PA may operate slowly or inconsistently.230 For example, officials in
Texas reported that large, populous areas like Houston recovered more quickly after Hurricane
Harvey under the National Delivery Model than smaller communities that lacked emergency
management experts.231
Some stakeholders have noted that the increasing number and scale of PA-eligible disasters has
exacerbated the strain on PA stakeholders. The especially active 2017 and 2018 disaster seasons
revealed vulnerabilities in FEMA’s PA capacity and general deployment strategy. In response,
FEMA and GAO issued new recommendations.232 In the summer of 2020, GAO recommended
that FEMA develop a plan to accurately assess employee competency, assess deployment
efficacy, and create a new staff development program.233 Congress may monitor implementation
of these recommendations.
Congress may also monitor newly proposed rulemaking by FEMA that intends to reduce the
number of PA-eligible disaster declarations, shifting more of the work of smaller incident
response from FEMA to SLTTs.234 FEMA explains:
the constraints imposed by numerous and cumulative smaller disasters affect the Agency’s
readiness to support disaster recovery operations without unacceptable delays by
consuming FEMA staff time and resources that would be better used for larger disasters….
FEMA could be faster and more effective in planning for, responding to, and recovering
from large catastrophic disasters if more of its workforce was able to focus on such large
disasters, rather than being dispersed to numerous smaller incidents more appropriately
handled by the States.235
Congress may monitor FEMA’s proposed rulemaking, including comments received during the
public notice and comment period.236 Several stakeholders have expressed concern that the
rulemaking would leave state and local governments without the necessary capacity to respond to
disasters.237
228 Ibid.
229 GAO, PA Redesign, pp. 22-24.
230 Ibid.; Committee on Post-Disaster Recovery of a Community’s Public Health, Medical, and Social Services; Board
on Health Sciences Policy; Institute of Medicine, “Disaster Recovery Funding; Achieving a Resilient Future?” Healthy,
Resilient, and Sustainable Communities After Disasters: Strategies, Opportunities, and Planning for Recovery,
Washington: National Academy of Academies Press, 2015.
231 GAO, Natural Disasters: Economic Effects of Hurricanes Katrina, Sandy, Harvey, and Irma, September 10, 2020,
GAO 20-633R, p. 6, https://www.gao.gov/assets/710/709293.pdf.
232 GAO, FEMA Progress, pp. 21-26; GAO, FEMA Workforce, pp. 2, 18-26; FEMA, 2017 Hurricane Season FEMA
After-Action Report (AAR), July 12, 2018, p. 39, https://www.fema.gov/media-library-data/15336432621956d1398339449ca85942538a1249d2ae9/2017FEMAHurricaneAARv20180730.pdf.
233 GAO, FEMA Workforce, pp. 43-44.
234 FEMA, “Proposed Rule: Cost of Assistance Estimates,” pp. 80723-80724.
235 Ibid.
236 Comments received during the rulemaking process are generally available on http://www.Regulations.gov. The
docket for this rule, “Cost of Assistance Estimates in the Disaster Declaration Process for the Public Assistance
Program,” Docket ID: FEMA-2020-0038, is available at https://www.regulations.gov/docket/FEMA-2020-0038.
237 See, for example, Proposed Rule on Cost of Assistance Estimates, comment # FEMA-2020-0038-0044 by Diane
Yentel, President and CEO, National Low Income Housing Coalition, and comment # FEMA-2020-0038-0054 by Sima
Merick, President, National Emergency Management Association, https://www.regulations.gov/document/FEMA-
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Finally, Congress may consider proposals to increase technical assistance available to Recipients
and Applicants, particularly those with fewer available resources and less expertise.238 Additional
technical assistance may help Recipients and Applicants navigate the complex PA Program and
execute projects. Such improvements may in turn expedite recovery and reduce compliance
issues.
Alternative Procedures
The use of Alternative Procedures has been a significant source of congressional interest since
their authorization in the Sandy Recovery Improvement Act in 2013 (for a detailed description of
Alternative Procedures see “PA Alternative Procedures” and Appendix B).239
One area of interest concerns the implementation of Alternative Procedures as a pilot program.
SRIA amended the Stafford Act after Hurricane Sandy to authorize FEMA to promulgate
regulations or “expeditiously” implement Alternative Procedures as a pilot program without
standard rulemaking.240 FEMA has not promulgated rules for Alternative Procedures since
implementation in 2013. Instead, FEMA has issued four distinct iterations of guidance for
permanent work projects and seven iterations of guidance for debris removal, in addition to
guidance for specific disasters widely utilizing Alternative Procedures (Appendix C). The
proliferation of policy guidance may have generated confusion among Recipient and Applicants,
contributing to recovery delays and expenditures ineligible for PA.241 Promulgating Alternative
Procedures in regulations may increase clarity and facilitate recovery. However, promulgating
regulations may reduce FEMA’s flexibility to expeditiously improve the Alternative Procedures
pilot. Congress may inquire if, or when, FEMA plans to promulgate such regulations.
A second issue relates to the fiscal capacity of Applicants who implement PA projects under
Alternative Procedures. Applicants’ assumption of the financial risk of budget overruns under
Alternative Procedures may complicate recovery efforts. For example, Applicants without
sufficient capital to initiate projects before receiving reimbursement or to cover cost overruns
may not be able to complete PA-funded projects and advance recovery efforts.242
2020-0038-0001/comment.
238 GAO, Puerto Rico Disaster Recovery: FEMA Actions Needed to Strengthen Project Cost Estimation and Awareness
of Program Guidance, GAO 20-221, February 2020, pp. 30-31, https://www.gao.gov/assets/710/704282.pdf
(hereinafter GAO, FEMA Actions). On targeted technical assistance outreach to socially vulnerable communities, see
Simone J. Domingue and Christopher T. Emrich, “Social Vulnerability and Procedural Equity: Exploring the
Distribution of Disaster Aid Across Counties in the United States,” The American Review of Public Administration,
vol. 49, no. 8, pp. 897-913, November 2019.
239 The Sandy Recovery Improvement Act (SRIA), P.L. 113-2, 127 Stat. 39; Stafford Act Section 428. The Public
Assistance Program Alternative Procedures are codified at Section 1102 of SRIA; 42 U.S.C. §5189(f).
240 Section 428(f) of the Stafford Act, P.L. 93-288, as amended; 42 U.S.C. §4189f(f).
241 DHS OIG, Clearer Guidance Would Improve FEMA’s Oversight of the Public Assistance Alternative Procedures
Pilot Program, OIG-16-03-D, October 27, 2015, https://www.oig.dhs.gov/assets/GrantReports/2016/OIG-16-03-DOct15.pdf (hereinafter DHS OIG, Clearer Guidance); GAO, Puerto Rico Hurricanes 2019, p. 22; GAO, FEMA
Actions, pp. 33-35.
242 For example, see Puerto Rico’s recovery from Hurricane Maria. To address liquidity constraints for Applicants
completing large projects under Alternative Procedures, the Government of Puerto Rico announced in 2020 the
establishment of a $1 billion Working Capital Fund. Government of Puerto Rico, 2020 Fiscal Plan for Puerto Rico, As
Submitted to the Financial Oversight and Management Board for Puerto Rico on May 3, 2020, pp. 28-29,
https://www.aafaf.pr.gov/assets/2020-fiscal-plan-may-3-2020.pdf. CRS Report R46609, The Status of Puerto Rico’s
Recovery and Ongoing Challenges Following Hurricanes Irma and María: FEMA, SBA, and HUD Assistance,
coordinated by Elizabeth M. Webster.
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Finally, Congress may consider the delays and challenges associated with the use of fixed cost
estimates in Alternative Procedures. One Member of Congress noted that Alternative Procedures
was “intended to provide States and territories significantly more flexibility in building back
better and faster. Yet [it] seems to be looking more like the paper-intensive 406 [standard
procedures] process.”243 Reports that the use of Alternative Procedures sometimes encumber or
slow recovery may be of interest to Congress, given statutory aims to expedite and increase the
flexibility of PA through the pilot program.244
Some observers have attributed delays to the need to determine and establish consensus on
estimated costs for PA Alternative Procedures. FEMA and GAO have both attributed delays to the
process of determining, validating, and establishing consensus on fixed-cost estimates in Puerto
Rico; GAO referred to this process as a “massive challenge.”245 Other recovery efforts have also
reported delayed agreements on cost estimates, including the 2018 typhoons in the
Commonwealth of the Northern Mariana Islands (CNMI).246 Recovery stalled in both Puerto Rico
and the CNMI. Two years after the hurricanes made landfall in Puerto Rico, FEMA reported that
19 projects out of 9,344 identified damaged worksites on the island (0.2% of the total) had
finalized fixed cost estimates.247 In the case of the CNMI, fixed-cost estimates for Alternative
Procedures projects initiated in November 2018 were settled in February-May 2020.248
SRIA required the DHS OIG to assess and report on the efficacy of Alternative Procedures.249 The
OIG reported in June 2018 that too few projects had been implemented under Alternative
Procedures to undertake the review.250 Congress may consider new opportunities for program
assessment given the growth of Alternative Procedures expenditures since authorization.
Congress may consider reviews that include assessment of cost savings under Alternative
Procedures, in addition to the status of projects, Applicants’ fiscal capacity to meet unforeseen
costs, and the overall progress of recovery.
Agency Discretion
Some Members of Congress, the DHS OIG, and nonfederal stakeholders have raised concern
regarding FEMA’s discretion in determining the eligibility of specific costs and work for PA.251
For example, in 2020, FEMA determined that Personal Protective Equipment (PPE) purchases
and other emergency measures enacted by schools and courthouses in response to the COVID-19
pandemic were ineligible for PA, given that such purchases were not “directly related to the
243 Testimony of Rep. Meadows, House T&I, Recent Disasters, pp. 142-143.
244 Section 428(c) of the Stafford Act, P.L. 93-288, as amended; 42 U.S.C. §4189f(c).
245 Omar J. Marrero, Governor of Puerto Rico’s Authorized Representative, Letter to Gene I. Dodaro, Comptroller
General of the United States, January 30, 2019, in GAO, Puerto Rico Hurricanes 2019, pp. 37-38; GAO Representative
Chris P. Currie, oral testimony, U.S. Congress, House Homeland Security Subcommittee on Emergency Preparedness,
Response and Recovery, Hearing on Puerto Rico and Virgin Islands Hurricane Recovery, 116th Cong., 1st sess., July
11, 2019.
246 GAO, 2018 Pacific Disasters, pp. 16-18.
247 GAO, FEMA Actions, p. 18
248 GAO, 2018 Pacific Disasters, pp. 16-17.
249 Section 428(h)(1)-(2) of SRIA, 42 U.S.C. §5189f(h)(1)-(2).
250 DHS OIG, Sandy Recovery Improvement Act Review, OIG-18-66, June 1, 2018, https://www.oig.dhs.gov/sites/
default/files/assets/2018-06/OIG-18-66-Jun18.pdf (hereinafter DHS OIG, SRIA Review).
251 DHS OIG, Submitted Testimony, HSGAC, Stafford Act Reform, pp. 41-42; GAO, PA Redesign, pp. 12-13; House
Oversight, Recurring Problems, p. 33.
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performance of otherwise eligible emergency work.”252 The determination garnered significant
criticism from Applicants, news media, and some Members of Congress.253 Additionally, the DHS
OIG and GAO have cited examples where FEMA has approved ineligible—and
sometimesfraudulent—costs (see “Oversight Challenges”).254 On the other hand, some Members
of Congress and FEMA officials have noted that it is important that FEMA retain flexibility given
the particularities of each incident.255
Recent statutory and policy changes may provide clarity and consistency to FEMA’s eligibility
determinations. GAO found that some Applicants reported that certain changes to PA delivery
through the National Delivery Model, including the assignment of a single point of contact for
Applicants, may remedy some of the confusion created by program rules and procedures.256
However, Applicants’ reported challenges and delays with eligibility determinations have
persisted even after the implementation of the National Delivery Model. GAO has found that in
some cases, eligibility determinations may seem less transparent under the new model, as
reported by some PA Applicants during the 2017 hurricanes a
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