: Pursuant to 44 C.F.R. § 206.225, the labor charges incurred by the Applicant are not eligible costs because they reflect “down” or “standby” time when the Applicant’s employees and contractors were not performing eligible emergency work. However, Section 705(c) prohibits FEMA from recovering the ineligible costs because all statutory requirements of the Section have been met.

Stafford Act §§ 403 and 705(c). OMB Circular A-87, 2 C.F.R. § 225. 44 C.F.R. § 206.225. PA Guide, at 34-35. Headnotes Pursuant to the Stafford Act § 403 and 44 C.F.R. § 206.225(a)(1), FEMA may reimburse a state or local government for work and services completed that are essential to saving lives and protecting property before, during, and immediately after a disaster.