New Disaster Bill Mandates 90% Federal Funding for Small Mitigation Projects and Boosts Tribal Access

The Building Resilience and Stronger Communities Act is essentially a major overhaul of how the federal government funds pre- and post-disaster mitigation efforts, making FEMA’s financial commitment less discretionary and much more certain. This bill mandates higher federal cost-sharing for local projects, dedicates specific funding to infrastructure, and finally gives Indian Tribes direct access to critical hazard mitigation grants.

The Federal Government is Now Mandated to Pay Up

If you’ve ever seen a local government struggle to find the matching funds for a federal grant, this section is for you. The bill amends the Stafford Act to significantly increase the federal share of costs for small mitigation activities—those costing less than $1,000,000. Instead of the federal government potentially covering a portion, the new rule is that they must pay at least 90 percent of the cost. This is a game-changer for smaller towns and counties that need to do things like reinforce a flood wall or upgrade a small drainage system but can’t float the 25% or 50% local match.

Even more interesting is the provision for “critical facilities”—think hospitals, police stations, schools, and power plants. If a mitigation project for one of these facilities costs under $1,000,000, the federal government may pay more than 90 percent of the cost. This means better protection for the infrastructure you rely on most when disaster strikes, and less financial strain on your local tax base to get those projects done.

Mitigation Funding Moves from 'May' to 'Must'

One of the biggest structural changes in this bill is in Section 3, which removes FEMA’s discretion in providing hazard mitigation funding after a major disaster. Currently, the law states that FEMA may provide funding; this bill changes that language to “shall,” making it mandatory. For any major disaster declared since 2006, FEMA is now required to provide funding for hazard mitigation measures. Furthermore, FEMA must contribute up to 75 percent of the cost for measures that are determined to be cost-effective and substantially reduce future risks.

This shift from may to shall provides much-needed certainty. It means that when a disaster hits, communities can plan on getting federal help to rebuild smarter, not just faster. The catch here, however, is that the criteria for what constitutes “cost-effective” and “substantially reduces risk” are still determined by the President (and by extension, FEMA), leaving some wiggle room for interpretation on which specific projects get that mandatory 75% contribution.

Dedicated Funds for Public Infrastructure and Tribal Access

Section 4 mandates that a specific slice of the predisaster mitigation assistance budget must be set aside for public infrastructure projects. The bill requires that not less than 3 percent and not more than the total predisaster funds must go toward fixing and strengthening things like roads, bridges, and water systems before they fail. This mandatory minimum ensures that infrastructure resilience isn't overlooked in the rush to fund other types of mitigation projects.

Finally, the bill addresses a long-standing inequity by adding Indian Tribes to the list of entities eligible for the Hazard Mitigation Grant Program in Section 5. Previously, Tribes often had to go through a State or local government to access these funds. Now, they can be selected directly by the President, or receive funding through a Tribal-set aside. This provision also ensures that the assistance provided to Tribes is specifically for “Direct Technical Assistance” to help them build their own strong mitigation programs and develop high-quality project applications, empowering them to manage their own resilience efforts.