INSIGHTi
Federal Emergency Management Agency
(FEMA) Hazard Mitigation Assistance
Updated December 15, 2020
Introduction
The majority of funding in the United States for both pre- and post-disaster mitigation comes from the
Federal Emergency Management Agency (FEMA), which defines mitigation as “any sustained action to
reduce or eliminate long-term risk to people and property from natural hazards and their effects.”
Mitigation actions have a long-term impact, as opposed to actions associated with immediate
preparedness, response, and recovery activities. Mitigation has been shown to save money. A recent study
by the Multihazard Mitigation Council found that society saves $6 for every dollar spent on mitigation
funded through major federal mitigation grants.
FEMA administers three hazard mitigation grant programs, which it collectively refers to as Hazard
Mitigation Assistance (HMA):
the Hazard Mitigation Grant Program (HMGP);
the Flood Mitigation Assistance (FMA) Grant Program;
the Pre-Disaster Mitigation (PDM) Grant Program, replaced by Building Resilient
Infrastructure and Communities (BRIC).
Eligible applicants include state and local governments and federally-recognized tribes. Certain nonprofit
organizations may apply for HMGP. Individuals may not apply for HMA funding, but they may benefit
from a community application. Applicants to all three programs must have FEMA-approved hazard
mitigation plans. Eligible activities differ for the three programs.
The Hazard Mitigation Grant Program (HMGP)
The Hazard Mitigation Grant Program is authorized by Section 404 of the Stafford Act (42 U.S.C.
§5170c). HMGP assistance is triggered by a major disaster declaration from the President or a Fire
Management Assistance Grant (FMAG) and is funded through the Disaster Relief Fund (DRF). The key
purpose of the HMGP program is to ensure that the reconstruction process following a disaster addresses
opportunities to include mitigation measures to reduce the loss of life and property from future disasters.
Congressional Research Service
https://crsreports.congress.gov
IN11187
CRS INSIGHT
Prepared for Members and
Committees of Congress
Congressional Research Service
2
HMGP funding is awarded as a formula grant to a state based on the estimated total federal assistance per
major disaster declaration or FMAG, subject to a sliding scale formula (42 U.S.C. §5170c(a) and 44
C.F.R. §206.432(b)). HMGP funding normally does not exceed 15% of the estimated total aggregate
federal grant amount, but states with an approved Enhanced State Mitigation Plan in effect before the
disaster are eligible for HMGP funding of 20% of such amount. States can use HMGP funds for any
eligible activity for any type of hazard and are not limited to the hazard or area for which the grant was
awarded. HMGP funds may be used to pay up to 75% of eligible activity costs. Funding from other
federal sources cannot be used for the 25% share, with one exception—funding provided under the
Community Development Block Grant (CDBG) program.
The Pre-Disaster Mitigation Grant Program (PDM)
Pre-Disaster Mitigation (PDM) funding is authorized by Section 203 of the Stafford Act (42 U.S.C.
§5133), with the goal of reducing overall risk to the population and structures from future hazard events,
while also reducing reliance on federal funding to respond to future disasters. The PDM program is now
funded through the DRF. Until FY2019 the amount available for PDM was appropriated annually to a
separate account and PDM grants were awarded competitively. Maximum and minimum amounts to each
state for PDM are set in statute, with each applicant eligible to receive an allocation not less than the
lesser of 1% of total funds for the fiscal year, or $575,000, with no applicant to receive more than 15% of
the appropriated funding.
Changes to Pre-Disaster Mitigation Funding
Funding for pre-disaster mitigation changed significantly with the passage of the Disaster Recovery
Reform Act of 2018 (DRRA, Division D of P.L. 115-254). DRRA authorized a new source of funding for
pre-disaster mitigation called the National Public Infrastructure Pre-Disaster Mitigation Fund (NPIPDM)
For each major disaster declaration, the President may set aside from the DRF an amount equal to 6% of
the estimated aggregate amount of the grants to be made pursuant to the following sections of the Stafford
Act:
Congressional Research Service
3
403 (essential assistance)
406 (repair, restoration, and replacement of damaged facilities)
407 (debris removal)
408 (federal assistance to individuals and households)
410 (unemployment assistance)
416 (crisis counseling assistance and training)
428 (public assistance program alternative program procedures)
The funds from this 6% set-aside go to the NPIPDM. There is potential for significantly increased
funding following a year with many big disasters, but funding could also be less in a year with few
disasters. FEMA anticipates that the NPIPDM will receive $300-$500 million per year on average. As of
November 30, 2020, there was $962 million available in the 6% set-aside from the DRF. This includes a
$500 million set-aside associated with COVID-19; FEMA estimates up to $3.7 billion for BRIC as a
result of the COVID-19 major disaster declarations.
FEMA introduced a new program, the Building Resilient Infrastructure and Communities Grant Program
(BRIC), to replace the PDM Grant Program. Federal funding is generally available for up to 75% of the
eligible activity costs; however, small, impoverished communities may be eligible for up to a 90% federal
cost share. A total of $500 million is available in FY2020, in three categories:
1. State/territory allocation: $33.6 million
2. Tribal set-aside: $20 million
3. National competition: $446.4 million
Further information on BRIC is available in CRS Insight IN11515, FEMA Pre-Disaster Mitigation: The
Building Resilient Communities and Infrastructure (BRIC) Program.
The Flood Mitigation Assistance Grant Program (FMA)
To reduce comprehensive flood risk, FEMA also operates a Flood Mitigation Assistance Grant Program
funded through revenue collected by the National Flood Insurance Program (NFIP), with the goal of
mitigating NFIP-insured flood-damaged properties to reduce or eliminate NFIP claims. FMA funding is
only available to communities which participate in the NFIP.
Congress allows FEMA to withdraw funds from the National Flood Insurance Fund and use those funds
to operate the NFIP, but the spending authority to use these offsetting collections for FMA must be
authorized in appropriations acts (42 U.S.C. §4017(f)). In December 2020, FEMA increased FY2020
funding for FMA to $200 million. Generally, federal funding is available for up to 75% of eligible costs.
However, FEMA may contribute up to 90% for repetitive loss properties and up to 100% for severe
repetitive loss properties.
Congressional Research Service
4
Author Information
Diane P. Horn
Analyst in Flood Insurance and Emergency Management
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
IN11187 · VERSION 8 · UPDATED