Recent Funding Increases for FEMA Hazard Mitigation Assistance

Recent Funding Increases for FEMA Hazard Mitigation Assistance

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INSIGHTi

Recent Funding Increases for FEMA Hazard
Mitigation Assistance
Updated December 22, 2022
Introduction
Federal Emergency Management Agency (FEMA) Hazard Mitigation Assistance programs all received
additional funding in the 117th Congress, particularly through the Infrastructure Investment and Jobs Act
(IIJA).
Over the years, post-disaster mitigation has received significantly more funding from FEMA than pre-
disaster mitigation. GAO found that of the approximately $11.3 billion in FEMA mitigation funding
obligated from FY2010 to FY2018, 88% was for post-disaster grants through the Hazard Mitigation Grant
Program (HMGP) and Public Assistance (PA). FEMA’s competitive pre-disaster grant programs, the
Flood Mitigation Assistance program (FMA) and the Pre-Disaster Mitigation Grant Program (PDM)
accounted for about 12% of the total; see Figure 1.
Building Resilient Infrastructure and Communities
(BRIC)
Funding for pre-disaster mitigation was changed by 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 November 30, 2022, $3.997 billion was set aside in the DRF for pre-disaster mitigation.
The BRIC Program began in FY2020, with $500 million available for BRIC in FY2020 and $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. $2.295 billion in BRIC funding is available in
FY2022.
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Figure 1. Funding for Pre-Disaster Mitigation FY1997-FY2022

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
(NOFOs) for PDM 2017, 2018, and 2019; FEMA NOFOs for BRIC FY2020, FY2021, and FY2022.
Flood Mitigation Assistance
FEMA also operates the FMA program, which is available only to communities that participate in the
NFIP (National Flood Insurance Program). $200 million was available for FMA in FY2020 and $160
million was available in FY2021. 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. $800 million is
available for FMA in FY2022.
On March 14, 2022, FEMA 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 allocated $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, as well as the highest total insurance claims within
their respective FEMA regions. As of December 1, 2022, $10.28 million has been obligated for Swift
Current projects.

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The Hazard Mitigation Grant Program and the COVID-
19 Disasters
HMGP assistance is triggered by a major disaster declaration or 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
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 $3.46 billion in HMGP funding was made available to states,
territories, and tribes (STTs) with major disaster declarations for the COVID-19 pandemic for 4% of
eligible relief costs (see Figure 2). 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.)
Congressional Community Projects
Funding was appropriated in FY2022 for the PDM program for 68 Congressional Community Projects,
(commonly referred to as earmarks, which were restored by the 117th Congress in both the House and the
Senate), with awards totaling $153,922,408 to one tribe and 28 states (some states received multiple
awards).
Safeguarding Tomorrow Revolving Loan Program
A new source of hazard mitigation funding will be available from a new program known as the
Safeguarding Tomorrow Revolving Loan Fund Program (STRLF) which was created by the STORM Act
of 2020. This law amended 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 through
FY2026. FEMA released the first Notice of Funding Opportunity for the STRLF program on December
20, 2022, with $50 million available for FY2023. The STRLF program represents the first time that a
revolving loan fund has been set up to fund hazard mitigation.

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Figure 2.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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Author Information

Diane P. Horn

Specialist 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.
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IN11733 · VERSION 11 · UPDATED