FEMA’s Hazard Mitigation Grant Program: Overview and Issues

Summary

Since 1989, the federal government has spent over $96.1 billion for disaster assistance provided by the Federal Emergency Management Agency (FEMA). Over $4.4 billion of the disaster assistance was for hazard mitigation of natural disasters such as floods, wildfires, hurricanes, tornados, and earthquakes. The unpredictable nature of the location and scale of natural disasters poses a significant fiscal management challenge to Congress. To alleviate the federal costs of disasters, Congress amended the Disaster Relief Act of 1974 in 1988 (P.L. 100-707), which was renamed the Robert T. Stafford Disaster Relief and Emergency Assistance Act (commonly known as the “Stafford Act”), to provide federal assistance to mitigate the impacts from future disasters.

Hazard mitigation activities are generally categorized as structural and nonstructural. Structural mitigation activities may include physical changes to a facility or development of standards such as building codes and material specifications. Examples of physical changes to a structure are retrofitting a building to be more resistant to wind-hazards or earthquakes, or elevating a structure to reduce flood damage. Nonstructural activities may include community planning initiatives such as developing land-use zoning plans, disaster mitigation plans, and flood plans. Other nonstructural community activities may include participating in property insurance programs and developing warning systems.

Federal disaster mitigation assistance provides funding for both structural and nonstructural mitigation activities. A primary source of federal disaster mitigation assistance is the Hazard Mitigation Grant Program (HMGP). Legislation introduced in the 110th Congress would have expanded allowances for the use of HMGP funds administered by FEMA in the Gulf Coast. Legislation introduced in the 111th Congress include provisions that would establish a homeowner mitigation loan program (H.R. 1239), provide a tax credit for mitigation expenditures (H.R. 308), and create a National Hurricane Research Initiative to improve hurricane preparedness (H.R. 327).

Issues that Congress may wish to consider, in addition to eligible uses of HMGP funds, include the role of federalism in disasters, the lag between a major disaster declaration and expenditure of HMGP funds, the accuracy of risk assessment and disaster predictions, consolidation of hazard mitigation grant programs under a block grant, and disaster assistance to small businesses.

This report will be updated as warranted by events.