New Monetary Thresholds for FEMA’s Public Assistance Program

The Sandy Recovery Improvement Act (SRIA) of 2013 directs FEMA to implement changes to the Simplified Procedures thresholds for eligibility under the Public Assistance (PA) grant program. FEMA’s PA program provides supplemental Federal disaster grant assistance to state, local, tribal, and territorial governments and certain types of private nonprofit organizations for debris removal, emergency protective measures, and the repair, replacement, or restoration of disaster-damaged facilities.

FEMA determined that a change in the thresholds for Simplified Procedures would benefit grantees and sub-grantees, specifically raising the Simplified Procedures maximum threshold to $120,000 (from $68,5000) and raising the minimum threshold for project eligibility to $3,000 (from $1,000), thereby eliminating much of the administrative burden placed on larger projects. Both threshold amounts will be revised annually to reflect changes in the Consumer Price Index for All Urban Consumers (CPI) published by the U.S. Department of Labor. The Final Rule is effective February 26, 2014.