The Federal Emergency Management Agency (FEMA) released an Advance Notice of Proposed Rulemaking to consider states making a predetermined financial commitment (deductible) prior to receiving disaster financial assistance under the Public Assistance Program.  Currently, the Stafford Act requires the federal share of assistance to be not less than 75 percent of the eligible cost of damaged facilities, and that is after a state has exceeded its calculated cost threshold.  FEMA’s concept is to have states make a predetermined financial commitment, which could be offset with credits based on investment in resilience and disaster mitigation, prior to receiving any financial assistance.  FEMA anticipates that the concept would incentivize mitigation strategies and investments in resilience, reducing the costs of future disaster events for both states and the federal government.    

However, the concept has not been well developed and it is unclear how it would relate to the existing threshold and cost share under the Stafford Act.  RCRC is concerned that the staff and time investment in policy development and a verification process of eligible deductible contributions and credits would surpass the cost share program and potentially delay the distribution of disaster relief.  RCRC joined the California State Association of Counties (CSAC) and the Urban County Caucus (UCC) in submitting comments.  The joint letter can be accessed here.

If FEMA chooses to pursue this concept, they will develop a model based on the comments received and seek public comment through a Notice of Proposed Rulemaking.