Shelter and Services Program (SSP) FY2023 Funding

Shelter and Services Program (SSP) FY2023 Funding

INSIGHTi

Shelter and Services Program (SSP) FY2023
Funding
Updated August 30, 2023
On June 12, 2023, the Department of Homeland Security (DHS)/Federal Emergency Management
Agency (FEMA) published the first notice of funding opportunity (NOFO) for the new Shelter and
Services Program (SSP). The SSP is a grant program that funds reimbursement or advanced payments to
nonfederal entities that provide shelter and other eligible services to migrants encountered by and released
from DHS custody, as well as funding to increase their temporary shelter capacity.
The SSP is replacing the Emergency Food and Shelter Program-Humanitarian (EFSP-H), which
supplemented the humanitarian relief efforts of local government and nonprofit organizations providing
food, shelter, and supportive services to migrants encountered by DHS at the southern border. However,
the SSP is being implemented somewhat differently, as described below.
Authority and Background
The Department of Homeland Security Appropriations Act, 2023 (P.L. 117-328, Div. F, Title II) directed
U.S. Customs and Border Protection (CBP) to transfer $800 million of its FY2023 appropriation to
FEMA for the SSP. The funding is
to support sheltering and related activities provided by non-Federal entities, including facility
improvements and construction, in support of relieving overcrowding in short-term holding facilities
of U.S. Customs and Border Protection....
Congress authorized FEMA to use a portion of the $800 million—specifically, up to $785 million—to
implement the EFSP-H in FY2023 while the SSP was established. FEMA awarded $425 million for the
EFSP-H. DHS stated that the remaining funding, totaling approximately $360 million, would be awarded
through the SSP. On June 12, 2023, DHS/FEMA published the NOFO for the first tranche of SSP
funding. Subsequently, on August 21, 2023, DHS/FEMA amended the original NOFO, updating it for the
second tranche of SSP funding.
For more information on the EFSP-H and transition to the SSP, see CRS Insight IN12132, FEMA’s
Emergency Food and Shelter Program-Humanitarian Relief (EFSP-H) and the New Shelter and Services
Program (SSP).
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Funding, Eligibility, and the Application Deadline
In FY2023, a total of $363.8 million is being made available for the SSP in two tranches. The first tranche
of SSP funding made $291 million available to eligible applicants. The second tranche of SSP funding
made $77.3 million available to eligible applicants, including $10 million held in reserve for allocation
prior to the end of September 2023.
Unlike the EFSP-H, which was a competitive grant program, DHS/FEMA’s SSP NOFO allocated funding
to eligible applicants based on CBP release and destination data and EFSP-H request data. FEMA, in
coordination with CBP, will administer the grants.
The NOFO lists the eligible applicants and makes specific funding allocations. These specifically
identified government and nonprofit organizations as the only entities that are eligible to apply for SSP
funding. That said, eligible subapplicants with the capacity to perform the SSP allowable activities may
receive subawards from the eligible applicants. Subapplicants can include:
• local governments;
• Indian tribes;
• nonprofit organizations; and
• state governments (i.e., for this purpose, the 50 states, District of Columbia, the
Commonwealth of Puerto Rico, and any agency of instrumentality thereof).
The application submission deadline for the second tranche of SSP funding is September 11, 2023
(eligible applicants from the first tranche must amend their application to incorporate funding from the
second tranche). According to the NOFO, if an eligible applicant does not apply for its full allocation or is
not issued an award, that amount will be rolled into the reserve and reallocated. The $10 million currently
in reserve will be available to eligible applicants from either SSP tranche “to account for rapidly changing
trends and operational considerations.”
Eligible Costs
Per the SSP NOFO and FAQ, eligible costs include the following services, which can only be provided
for “noncitizen migrants within 45 days of their release from DHS,” incurred between March 1, 2023, and
September 30, 2025:
• Primary Services—including shelter, food, transportation, acute medical care, personal
hygiene supplies, and labor for primary services (second tranche applicants must include
at least one primary service in their application);
• Secondary Services—including renovations/modifications and repairs to existing
facilities (not to exceed $250,000; note that SSP funding cannot be used for costs
associated with new construction or the purchase of real estate), clothing, outreach
information, translation services, and labor for secondary services; and
• Management and Administration—including staff time to provide services directly or
in support of migrants, application preparation, grants management, and managing SSP
funds (up to 5% of the award).
Other eligible costs may include pre-award costs (requires prior written approval of DHS/FEMA), and
indirect costs (described in 2 C.F.R. Part 200).
While SSP’s eligible costs generally align with the EFSP-H’s eligible costs, there are some notable
differences including related to how costs are categorized and the level of support that may be provided.

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Both the SSP and EFSP-H prioritize Primary Services; however, the SSP considers more forms of
assistance to be Primary Services (see the above-listed categories). The EFSP-H, however, grouped them
according to five service categories, and limited Primary Services to food and shelter services.
Additionally, the SSP may provide support in excess of what was available through the ESFP-H. For
example, the SSP provides 45 days of hotel/motel services, but the EFSP-H limited hotel/motel services
to 5 days, or 30 days if the individual/family had no sponsor. Also, the SSP permits additional medical
care, such as durable medical equipment and prescription medication.
The amended NOFO for the second tranche of SSP funding increased the caps on hotel/motel and
airfare—related to onward destination transportation—to 10% of the total funding requested (up from
5%), and allows both first and second tranche applicants to apply for a waiver of the caps based on
operational need.
The SSP NOFO further describes program requirements, including related to eligible work, and
compliance (e.g., grant reporting). It also details monitoring and oversight requirements.
Resources
For additional SSP information:
• DHS/FEMA FY2023 SSP NOFO
• FEMA’s “Shelter and Services Program” web page
For additional EFSP-H information:
• FEMA’s “Emergency Food and Shelter Program” web page
• Emergency Food and Shelter National Board Program website (“Humanitarian Funding
Info” tab)
• CRS In Focus IF12026, FEMA’s Emergency Food and Shelter Program (EFSP)

Author Information

Elizabeth M. Webster

Analyst in Emergency Management and Disaster
Recovery

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
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Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
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IN12177 · VERSION 3 · UPDATED