Article 8: Mutual Aid Agreement

(Category: costs-eligilbilty)

Article Summary

When an applicant lacks sufficient resources to respond to an incident, it may verbally or formally request help from a providing entity under a mutual aid agreement. FEMA reimburses the requesting entity (never the providing entity directly) for eligible Emergency Work, emergency utility restoration, and grant management under strict conditions:

• The requesting entity must be legally charged for the aid, and payment must not be contingent upon receiving federal funds.
• The claimed costs must be reasonable and consistent with past non-disaster practices.
• Meticulous documentation must look at the work accomplished, the official billing, and proof of payment.

Labor provided by employees of the helping jurisdiction is treated as contract labor, meaning both regular and overtime hours are eligible. However, if the helping entity is just another division within the same local/state government, regular time for budgeted employees is ineligible. If the providing entity must backfill deployed personnel, the overtime costs for those backfill workers are eligible, but their straight-time remains ineligible. Equipment usage is reimbursed based on pre-set agreement terms or official FEMA equipment rates. Standby time, preparation to deploy, out-of-state dispatching, and long-term recovery support are strictly ineligible. Verbal agreements are valid if standard for past practices, but must be documented in writing and executed by both entities, preferably within 30 days of the Applicant's Briefing.

Five Key Takeaways for CTA FEMA Compliance

1. Direct All Claims Through the Requesting Entity: Ensure the entity with legal jurisdiction requests the aid and submits the final FEMA claim, as FEMA will never fund a providing entity directly.
2. Ensure Payment is Independent of Federal Awards: Verify that the mutual aid agreement explicitly binds the requesting entity to pay for services regardless of whether federal reimbursement is ultimately approved.
3. Formalize Verbal Agreements within 30 Days: If a pre-incident written agreement was not in place, document the verbal arrangements in writing, secure signatures from officials of both entities, and submit to FEMA within 30 days of the Applicant's Briefing.
4. Enforce Strict Restrictions on Division Labor: Do not claim straight-time labor if the providing entity is simply another division within your same local or state government structure.
5. Omit Mobilization Standby and Training Costs: Exclude any costs related to personnel "standing by" for deployment, mutual aid training exercises, or long-term community mitigation tasks, as these are strictly ineligible.

‍