Urgent Action: Why Replenishing the Disaster Relief Fund is Vital to Protect Communities
By: IEM Senior Executive Advisors Elizabeth Zimmerman, Former FEMA Associate Administrator of Response and Recovery & Edward Johnson, Former FEMA Chief Financial Officer
October 3, 2024 Update: The Disaster Relief Fund (DRF) was funded under the Continuing Resolution for the federal government and Immediate Needs Funding (INF) was lifted effective October 1, 2024.
Before we dive in, what you need to take away: As recent disasters like Hurricanes Beryl and Debby have shown, recovery efforts can be significantly delayed without immediate funding, leaving survivors and communities in limbo. To prevent this, Congress must fully fund FEMA’s Disaster Relief Fund and avoid the continued status of Immediate Needs Funding, which limits recovery support. The stakes are high, and every moment counts. At IEM, we are ready to help you craft precise, actionable spending plans, ensuring your community is prepared to swiftly access the funds when they become available. Together, we can turn challenges into recovery.
Communities across the nation are still reeling from disasters like Hurricane Maria, the COVID-19 pandemic, and devastating wildfires. The Federal Emergency Management Agency’s (FEMA) Disaster Relief Fund (DRF) is their lifeline. But without immediate Congressional action, recovery efforts remain halted, leaving communities vulnerable.
What Happened?
As billion-dollar disasters continued to impact the United States, the FEMA Administrator warned Congress in April 2024 that without additional funding for the DRF, FEMA would be forced to limit disaster recovery support. By August, with the DRF’s balance dangerously low, FEMA implemented Immediate Needs Funding or INF to ensure monies were available for lifesaving, life-sustaining efforts.
Under INF, essential disaster response operations and specific programs continue, including Individual Assistance (IA), Public Assistance (PA) for lifesaving and life-sustaining activities, and Fire Management Assistance Grants (FMAG). However, under INF, FEMA pauses new PA permanent work and reimbursement for work already completed, and Hazard Mitigation Grant Program (HMGP) projects. FEMA continues to accept and process PA and HMGP applications, but the lack of funding stops community recovery without the DRF monies to support these projects.
The Impact on Communities
When INF kicks in, essential rebuilding projects get delayed, leading to mounting costs and unmet needs. Communities can’t fully recover without the DRF, leaving them more vulnerable to future disasters. Without supplemental appropriations, communities will be unable to fully recover and will face cascading effects from project delays, including incurring additional costs and critical infrastructure left vulnerable.
Our communities cannot afford to take the risks associated with the lack of appropriate funding to assist communities recover and rebuild after major disasters.
What can States, Tribes, and Territories Do?
To avoid cascading delays once the DRF is fully funded, we urge state, local, tribal, and territorial (SLTT) agencies to take time now to ensure their recovery work is aligned with FEMA operations. To ensure SLTT agencies are fully prepared when the DRF is replenished, here are some key actions you could take now:
- Have projects ready for approval or obligation to include preparing Project Worksheets (PWs) with accurate estimates.
- Complete damage assessments promptly and accurately.
- Align spending plans with FEMA to ensure readiness and accuracy.
- Follow up on reimbursement requests to confirm the timing of payments.
- Identify de-obligations for recoveries as soon as possible.
- Focus on preparedness and readiness efforts, tapping into other resources as needed to respond to new disasters in a timely manner.
- Partner with experts like IEM to help navigate the complexities of funding streams and be ready when funds become available.
Taking these actions now, could prevent further delays and ensure that your communities recover quickly and resiliently.
What are the Next Steps for the DRF?
It is important to note that since 2001, FEMA has implemented INF nine times, including back-to-back in 2023 and 2024, indicating a pattern. A pattern that needs to be broken. If all currently deferred or delayed projects were ready to be obligated, the current projected DRF deficit would be approximately $6.258 billion.
Congress has multiple avenues to restore the DRF. In the coming weeks, Congress can choose to:
- Include substantial DRF funding in a CR to extend government operations into Fiscal Year 2025;
- Pass supplemental funding specifically targeted at replenishing the DRF; or
- Combine DRF funding with regular appropriations to provide more comprehensive relief.
Our Commitment
At IEM, we work hand-in-hand with SLTT agencies to simplify the often-overwhelming process of disaster recovery and federal funds management. As disasters grow more frequent and severe, ensuring adequate funding through FEMA’s DRF is critical to protecting communities. Without swift Congressional action to replenish the DRF, recovery efforts will grind to a halt, leaving vulnerable areas exposed and delaying vital rebuilding efforts.
The urgency is clear: Congress must act now to ensure that communities have the resources they need to recover and prepare for future disasters. At IEM, we specialize in helping SLTTs navigate the complexities of federal funding, providing start-to-finish support for grants management, compliance, project development, and more.
Our goal is simple: to ensure your community is ready when the funds become available so your community’s recovery can move forward with confidence. Contact IEM today to learn how we can help you maximize your disaster recovery efforts and secure the funding needed to rebuild stronger. Together, we can ensure a more resilient future.
