FLOOD07834

• County: Statewide
• Community: Nationwide
• Basin: Statewide
• Title: Report on Trends in State Mitigation Spending
• Date: 1/1/1999
• Prepared By: NEMA
• Floodplain - Doc Type: Educational/Technical/Reference Information

FEDERAL FUNDING MECHANISMS

The Federal Emergency Management Agency also administers several programs to
assist states with funding and promoting mitigation. States are using this money to
supplement their own efforts and to support interagency and public/private mitiga-
tion task forces.

The main federal funding mechanism is the Hazard Mitigation Grant Program
(HMGP), which is authorized by Section 404 of the Stafford Act. The HMGP provides
matching grants for up to 75 percent of the cost of mitigation projects. The amount of
federal funds available for the program is limited to 15 percent of the federal share of
grant assistance provided by the Stafford Act (less administrative costs) for major
disasters. The percentage of the cost-share provided by
states varies.

Even Split
Between State
& Local
Government

Other Funding
Methods

Full State
Match

Split with Local Government
and/or Private Nonproflts

Figure 10: State Match for Hazard Mitigation
Grant Funding

Each state determines what portion of the HMGP cost-
share they will match. At least 36 states determine
whether to pay the non-federal share on a case-by-case
basis, while the match is determined by law in seven
states. Two states have both. Only 7 states contribute the
full 25 percent, while 17 states provide no match at all.
The rest of the states split the cost with local govern-
ments and/or private non-profit organizations (Figure 10,
Appendix 8).

To encourage states to develop mitigation programs,
FEMA is now awarding additional funding through the
State Hazard Mitigation Program (SHMP). These funds
are used to support a state hazard mitigation officer,
planning and projects. Beginning in fiscal 1997, SHMP
funding was offered as a 100 percent federal grant
program to be phased into a 75/25 percent cost share
between the federal government and the states over the
next four years.

FEMA also administers programs to help local communities with mitigation. These
include the Flood Mitigation Assistance Program, which helps communities reduce
the money paid out by the National Flood Insurance Program for repetitive flood
claims. FEMA has also launched the Project Impact Program, which awards grants to
help cities implement mitigation programs and to promote the concept of disaster-
resistant communities. After a positive pilot program in 1998, FEMA has expanded the
program in fiscal 1999 to include at least one Project Impact Community in every
state.

~I National Emergency Management Association