FEMA
Advisory
FEMA Increases Public Assistance Small
Project Maximum to $1 Million
FEMA Administrator Deanne Criswell announced today the
agency is moving forward in reducing the administrative burden on government
entities and nonprofit organizations receiving FEMA financial grants following
a disaster..
FEMA has implemented a regulatory change to increase the small project
maximum for the agency’s Public Assistance program
to $1 million.
“We have to make
it easier for applicants to seek help following a disaster,” said Secretary of
Homeland Security Alejandro N. Mayorkas. “Today’s important change means a
smoother and faster process for getting federal disaster assistance dollars
into the hands of government entities and nonprofit organizations.”
“This policy
change is a reflection of FEMA and President Biden’s commitment to reduce red
tape, cut back on bureaucracy and ensure that communities get the resources
they deserve when they need them most,” said Administrator Criswell. “FEMA’s
Public Assistance remains our flagship program for helping communities rebuild
infrastructure, restore critical services to the public, and build climate
resilience. By simplifying the application process, we will break down barriers
and better meet the funding needs of small communities and our nonprofit
partners.”
Section 422 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act allows FEMA
to implement simplified procedures for projects below an established threshold.
Congress authorized simplified procedures in 1988 to support program efficiency
and allow lower dollar projects the opportunity to get recovery funding faster,
setting the small project maximum at $35,000.
Simplified
procedures allow FEMA to fund eligible small projects based on estimates, which
expedites disaster recovery funding to applicants.
After the Sandy Recovery Improvement Act in January 2013, FEMA completed an analysis of the program
and in 2015 adjusted the threshold to $120,000. FEMA conducted another review
in 2020, showing 77% of projects were considered small, and that if a $1
million threshold were applied, 94% of projects would be small and help put
additional recovery dollars in the hands of applicants faster.
Per the Fall
2021 and Spring 2022 Unified Agendas, FEMA implemented a regulatory change to
increase the Simplified Procedures threshold to $1 million, including
unobligated COVID-19 projects.
Applicants are
not required to submit quarterly progress reports on small projects or
reconcile final costs, but must still comply with all application laws,
regulations, and policies. National emergency management partners
have supported FEMA making this change to reduce administrative burdens,
more efficiently use resources, simplify the program for smaller applicants
with smaller dollar projects, and speed up the closure of projects.
The Department
of Homeland Security and FEMA are committed to providing equitable and
accessible recovery support to affected communities. FEMA intends to continue
adjusting the threshold annually to reflect changes in the Consumer Price Index
for All Urban Consumers and reviewing the base threshold every three years.
The $1 million
threshold applies to all projects under major disasters and emergencies
declared on or after Aug. 3, 2022. The $1 million threshold also applies to all
unobligated PA projects in major disasters and emergencies declared between
March 13, 2020, and Aug. 3, 2022.
Contact Us
If you have any
questions, please contact Office of External Affairs:Private Sector Engagement at (202) 646-3444 or
at nbeoc@max.gov
