FEMA's Public Assistance Program
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FEMA’s Public Assistance Program: A Primer and Considerations for Congress April 1, 2021 Congressional Research Service https://crsreports.congress.gov R46749 SUMMARY R46749 FEMA’s Public Assistance Program: A Primer April 1, 2021 and Considerations for Congress Erica A. Lee The Federal Emergency Management Agency’s (FEMA) Public Assistance (PA) Analyst in Emergency Program is central to contemporary U.S. federal emergency and disaster relief. Over the Management and Disaster past 10 years, PA has been authorized in every county, parish, and municipality in the Recovery United States. The reconstruction of entire infrastructure systems following Hurricane Katrina, mass evacuations ahead of California wildfires, and emergency medical care during the Coronavirus Disease 2019 (COVID-19) pandemic were all funded through PA. Administered by FEMA, the PA Program assists state, tribal, territorial, and local governments and certain nonprofits with both urgent response and long-term recovery work following a presidential declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act, as amended, P.L. 93-288). The Stafford Act provides PA for response and recovery through a federalist model intended to supplement—not supplant—nonfederal resources. FEMA and the state, tribe, or territory that received a declaration jointly administer PA, and the costs are shared between the federal government and nonfederal entities receiving assistance. Congress has addressed the scope, timeliness, and cost of PA in recent legislation and hearings, often in the wake of severe disasters, The Sandy Recovery Improvement Act of 2013 (Division B of P.L. 113-2;) and the Disaster Recovery Reform Act of 2018 (Division D of P.L. 115-254) included modifications to PA authorities that may expedite the completion of PA projects, reduce PA spending, and promote work that mitigates the risk of future damage. Still, as the frequency and severity of PA-eligible disasters mounted in recent years, so did the utilization and cost of PA. This report summarizes PA Program authorities and FEMA’s Public Assistance Program Obligations requirements. It also presents considerations relevant FY2000-FY2020 (billions) to the following policy questions for Congress: How, if at all, may Congress seek to respond to recent PA spending increases? How can the federal government effectively oversee the PA Program while swiftly assisting disaster-stricken communities? How, if at all, may Congress promote resilience through PA? How will the federal government address delays in PA project completion and Source: CRS analysis of data provided by FEMA Office of recovery? Congressional and Legislative Affairs. To promote the timely and cost effective- execution of PA projects, Congress recently authorized Alternative Procedures. Has the implementation of Alternative Procedures met these goals? How may Congress seek to address the potential strain of PA on local, state, and federal workforce capacity, given the demands of grant management? To what extent should FEMA exercise discretion in determining what costs are eligible for PA? Congressional Research Service FEMA’s Public Assistance Program: A Primer and Considerations for Congress Contents Introduction ..................................................................................................................................... 1 Scope and Structure of Report .................................................................................................. 1 Program Overview .......................................................................................................................... 2 Requesting, Authorizing, and Administering PA ...................................................................... 4 Requesting and Authorizing Public Assistance for Emergencies........................................ 4 Requesting and Authorizing Public Assistance for Major Disasters ................................... 5 PA Recipients and Applicants ............................................................................................. 8 Eligibility .................................................................................................................................. 9 Applicants ......................................................................................................................... 10 Facility .............................................................................................................................. 10 Work ................................................................................................................................... 11 Costs.................................................................................................................................. 14 PA Requirements and Procedures............................................................................................ 15 Cost-Share ......................................................................................................................... 15 Insurance Requirements .................................................................................................... 16 Public Assistance Funding Procedures ............................................................................. 17 Building Standards ............................................................................................................ 22 Mitigation Activities ......................................................................................................... 23 PA Funding .................................................................................................................................... 24 DRF Obligations for PA .......................................................................................................... 24 Scale of PA Expenditures ........................................................................................................ 25 Trends in PA Expenditures ...................................................................................................... 27 Obligations by Category ................................................................................................... 27 Obligations by Hazard Type ............................................................................................. 27 Obligations by State .......................................................................................................... 29 Congressional Considerations ....................................................................................................... 29 Cost of PA Program ................................................................................................................. 30 Oversight Challenges .............................................................................................................. 33 Promoting Resilience Through PA .......................................................................................... 35 Project Execution Delays ........................................................................................................ 36 Strained Federal, State, and Local Workforce Capacity .......................................................... 38 Alternative Procedures ............................................................................................................ 41 Agency Discretion ................................................................................................................... 42 Concluding Observations .............................................................................................................. 44 Figures Figure 1. Forms of Public Assistance Authorized Under Stafford Act Declarations ....................... 4 Figure 2. Stafford Act Declaration Request Process ....................................................................... 6 Figure 3. Structure of FEMA Public Assistance Program Administration ...................................... 9 Figure 4. FEMA’s PA Program Eligibility Pyramid ...................................................................... 10 Figure 5. Funding Scenarios for Large Projects Under Alternative and Standard Public Assistance Procedures ................................................................................................................ 21 Figure 6. Disaster RF Obligations by Category, Fiscal Years 2000-2020 ..................................... 25 Congressional Research Service FEMA’s Public Assistance Program: A Primer and Considerations for Congress Figure 7. FEMA’s Public Assistance Program Obligations, Fiscal Years 2000-2020 ................... 25 Figure 8. FEMA’s Public Assistance Program Obligations by Category, Fiscal Years 2000-2020................................................................................................................................... 27 Figure 9. FEMA’s Public Assistance Program Obligations by Hazard, Fiscal Years 2000- 2020 ............................................................................................................................................ 28 Figure 10. FEMA’s Public Assistance Program Obligations by State and Territory, Fiscal Years 2000-2020 ......................................................................................................................... 29 Figure A-1. FEMA-reported PA Obligations for FY2020 by Incident .......................................... 46 Figure A-2. FEMA-reported PA Obligations including