House Panel Signals Intent To Renew FEMA Grant Program

Wed. Apr. 30, 2008


With a popular pre-disaster mitigation program set to expire in September, a House panel is moving quickly to reauthorize the program while appearing set to adjust its rules for awarding grants. First included as part of the Stafford Act reauthorization of 2003, the Federal Emergency Management Agency's Pre-Disaster Mitigation Program gives grants to local governments for infrastructure improvements aimed at reducing the impact of natural disasters. Common projects include strengthening buildings to better withstand earthquakes or hurricanes and buying out or elevating structures in flood plains. According to FEMA, the program has distributed about $500 million in grants for nearly 1,500 projects. At a House Transportation Economic Development Subcommittee hearing today, members cited a CBO study and an independent one that concluded that the program saves $3 or $4 for each dollar spent.

Representatives from local emergency organizations sought simplification of the grant application process and changes to how applications are considered, but urged quick reauthorization. "While [we] have concerns about some aspects of the ... program, we remain firm that the program's reauthorization is particularly important," said James Mullen, mitigation chair of the National Emergency Management Association. House Transportation and Infrastructure Economic Development Subcommittee Chairwoman Eleanor Holmes Norton, D-D.C., praised the program, but suggested the panel may alter rules to make it easier for nonprofits to apply for grants. Now, nonprofits like colleges or hospitals can apply for a share of state grant as a sub-applicant if they find a city or county to act as lead applicant. Calling that step "unnecessary and burdensome" Robert Bohlman, U.S. governmental affairs chairman for the International Association of Emergency Managers, urged that the subcommittee allow direct applications by nonprofits -- a proposal that won Norton's backing. FEMA Assistant Administrator David Maurstad suggested the program's current mechanism for nonprofit applications is adequate, but said the change "would be workable in our process."

The subcommittee is considering requests for changes to the program's grants process, which now gives grants competitively with amounts set aside for projects in each state. According to Maurstad, about one out of three applications receives funds. Some program critics have urged awarding funds via a fixed formula or a combination of a formula and the current approach. Mullen said the competitive program hurts smaller rural communities that lack resources to produce strong grant applications. But Norton was wary of altering the current approach, arguing other methods may overfund areas with little danger of natural disaster. "We have to have some way to weed people out," she said. Her panel also cited concern that the program takes too long to award grants. Of $50 million made available in FY06, $39 million has been awarded, according to the subcommittee. But Maurstad said such concerns result partly from confusion over how money is distributed.

by Dan Friedman

Wed. Apr. 30, 2008