INSIGHTi
Recent Funding Increases for FEMA Hazard
Mitigation Assistance
Updated March 23, 2022
Introduction
The Federal Emergency Management Agency (FEMA) announced that $3.46 billion in Hazard Mitigation
Grant Program funding (HMGP) will be made available to states, territories, and tribes (STTs) with major
disaster declarations for the COVID-19 pandemic. FEMA also announced increased funding for the
Building Resilient Infrastructure and Communities (BRIC) program for FY2021. In addition, significant
new mitigation funding will be available from FY2022 through the Infrastructure Investment and Jobs
Act (IIJA).
The Infrastructure Investment and Jobs Act
The IIJA appropriated $3.5 billion for the Flood Mitigation Assistance Grant Program (FMA). This
represents the first time that funding has been appropriated for FMA, which has previously been funded
by NFIP policyholders. The IIJA appropriated $1 billion for BRIC and $500 million to establish state
revolving loan funds for hazard mitigation, which were authorized by the STORM Act.
The Hazard Mitigation Grant Program and the
COVID-19 Disasters
HMGP assistance is triggered by a major disaster declaration or a Fire Management Assistance Grant
(FMAG) under the Stafford Act, awarded on a sliding scale as a percentage of the estimated amount of
total federal assistance for the disaster. States with a FEMA-approved Enhanced Hazard Mitigation Plan
before the disaster are eligible for HMGP funding of 20% of the total amount of disaster assistance.
States, territories, and tribes (STTs) can use HMGP funding for mitigation projects for any type of natural
hazard and for any eligible activity that reduces risk and builds resilience. HMGP funding does not have
to be used for the particular incident or disaster type for which it was allocated. For example, funding
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allocated for wildfires in one county could be used for flood mitigation activities in a different county, if
eligible.
FEMA announced on August 5, 2021, that HMGP funding will be made available to every STT that
received a major disaster declaration for the COVID-19 pandemic for 4% of eligible relief costs (see
Figure 1). This funding is not restricted to pandemic-related mitigation activities. Four percent is a lower
percentage than is usually awarded for HMPG, but the total funding of $3.46 billion represents the largest
amount of HMGP funding in a single fiscal year. (The largest amount previously was $2.29 billion in
FY2005.)
Pre-Disaster Mitigation
Over the years, post-disaster mitigation has received significantly more funding than pre-disaster
mitigation. GAO found that of the approximately $11.3 billion in mitigation funding obligated from
FY2010 to FY2018, 88% was for post-disaster grants through HMGP and PA. FEMA’s competitive pre-
disaster grant programs, FMA and the Pre-Disaster Mitigation Grant Program (the predecessor of BRIC)
accounted for about 12% of the total; see Figure 2.
Building Resilient Infrastructure and Communities
The BRIC Program began in FY2020, following the Disaster Recovery Reform Act of 2018, which
authorized the President to set aside from the Disaster Relief Fund (DRF), for every major disaster
declaration, an amount equal to 6% of the total funding awarded under seven sections of the Stafford Act.
Based on historical disaster expenditures, FEMA’s expectation was that this set-aside would be $300-500
million per year; however, the COVID-19 major disaster declarations resulted in additional funding. As of
February 28, 2021, $1.808 billion was set aside in the DRF for pre-disaster mitigation.
$500 million was available for BRIC in FY2020 and of $1 billion available in FY2021. The IIJA
appropriated $1 billion for BRIC, with $200 million in each of FY2022-FY2026. This funding is in
addition to the 6% set-aside.
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Figure 1. Hazard Mitigation Grant Program Funding for Major Disaster Declarations
Related to the COVID-19 Pandemic
Source: FEMA, HMGP Allocations for COVID-19 Declarations.
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Figure 2. Funding for Pre-Disaster Mitigation FY1997-FY2021
Sources: CRS Report RL34537, FEMA’s Pre-Disaster Mitigation Program: Overview and Issues; FEMA, National Pre-Disaster
Mitigation Fund, Fiscal Year 2017 Report to Congress, September 1, 2017, p. 4; FEMA Notices of Funding Opportunity for the
Pre-Disaster Mitigation Grant Program 2017, 2018, and 2019; FEMA Notices of Funding Opportunity for BRIC FY2020 and
FY2021.
Flood Mitigation Assistance
FEMA also operates a Flood Mitigation Assistance Grant Program (FMA), available only to communities
which participate in the NFIP (National Flood Insurance Program). $200 million was available for FMA
in FY2020 and $160 million was available in FY2021 for FMA. Twenty-six states did not submit FMA
applications in FY2020 and 31 states did not apply in FY2021.
The IIJA appropriated $3.5 billion for FMA, with $700 million for each of FY2022 to FY2026, and
provides a 90% federal cost share for a property: (1) that is located in a census tract with a CDC Social
Vulnerability Index score of not less than 0.5001; or (2) that serves as a primary residence for individuals
with a household income of not more than 100% of the applicable area median income. FEMA recently
announced the first initiative to be funded with the IIJA funding, the Swift Current Initiative Funding
Opportunity. The goal of Swift Current is to obligate FMA dollars for NFIP-insured and substantially
damaged properties as quickly and equitably as possible after a flood. Swift Current allocates $60 million
to Louisiana, Mississippi, New Jersey, and Pennsylvania. These states were selected because they were
affected by Hurricane Ida and have the highest repetitive loss and severe repetitive loss of NFIP-insured
unmitigated properties, and the highest total insurance claims within their respective FEMA regions.
STORM Act
A new source of hazard mitigation funding will be available through the Safeguarding Tomorrow through
Ongoing Risk Mitigation Act of 2020 (STORM Act), which amends the Stafford Act by authorizing
FEMA to enter into agreements with STTs to establish hazard mitigation revolving loan funds. The
STORM Act authorized the appropriation of $100 million annually for FY2022 and FY2023 to make
grants to capitalize new revolving loan funds. The IIJA appropriated $500 million for the revolving loan
program, with $100 million for each of FY2022 to FY2026. FEMA expects that it will take 18-24 months
to stand up and implement the program, with the first Notice of Funding Opportunity in FY2023.
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Author Information
Diane P. Horn
Analyst in Flood Insurance and Emergency Management
Disclaimer
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