FEMA revises $1.1B flood mitigation grant programs, opens for applications

The Federal Emergency Management Agency (FEMA) has opened two funding opportunities worth a combined $1.1 billion to help reduce or eliminate repetitive flood damage to buildings and infrastructure. Applications for the $600 million Flood Mitigation Assistance (FMA) program are due Aug. 6, while those for the FMA Swift Current program are due Dec. 30. 

Both of these opportunities were originally published in 2024. However, with the recent changes in administrations and reshaped focus for grant programs, the opportunities were revised to reflect new federal guidance and priorities. The opportunities will affect any sites insured under the National Flood Insurance Program (NFIP) and support flood mitigation activities to reduce flood risk to qualifying structures. 

Among the revisions FEMA made to the programs, the most notable include the removal of any requirement for projects to address climate change impacts. Projects no longer need to promote actions that simultaneously support flood hazard risk mitigation as well as climate adaptation, equity and resilience. 

The FMA opportunity will distribute its awards across three project categories: 

• Localized Flood Risk Reduction Projects – $420 million. 
• Individual Flood Mitigation Projects – $120 million. 
• Capability and Capacity Building Activities – $60 million. 

For localized flood risk reduction efforts, the agency will empower recipients to reduce community flood risks. Each project may receive up to $50 million. By comparison, the individual flood mitigation category covers individual structures with no federal cap. Capability and capacity building activities encompass development efforts for future localized flood risk reduction projects and individual flood mitigation projects that reduce flood claims. 

FEMA anticipates making around 40 awards, with potentially up to 725 subawards. Eligible applicants include: 

• States. 
• U.S. territories. 
• Native American tribes. 
• Nonprofit Native American tribal organizations. 
• Cities and townships. 
• Counties. 
• Special districts. 
• The District of Columbia. 

Local governments, territories and the District of Columbia must apply through their state or territory to quality. Federal funding will cover up to 75% of eligible costs for capability and capacity building activities and localized flood risk reduction efforts, leaving recipients to cover the remaining 25%. Individual flood mitigation projects, however, may receive up to 100% federal cost share funding. 

The FMA Swift Current opportunity has both similar goals and requirements, providing up to $500 million for individual flood mitigation projects for repetitive loss (RL), severe repetitive loss (SRL) or substantially damaged (SD) properties. The funding represents a $200 million increase from the previous funding round. The agency may also provide awards for project scoping and management costs. 

FEMA will award a maximum of $40 million per project, depending on what criteria applies to each submission. Eligible applicants are identical to the FMA program. The agency may cover up to 100% of project costs for individual flood mitigation, up to 75% for project scoping and up to 10% of aggregate of all total subapplication budgets for management costs. 

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