Costs Eligilbilty

Common Ineligible Costs

Detailed Discussion

Examples of Common Ineligible Costs (1 of 2)

The Stafford Act authorizes FEMA to provide Public Assistance funding for specific work performed as a result of the incident. It does not authorize FEMA to provide Public Assistance funding for all losses or costs resulting from the incident.

Examples of Common Ineligible Costs include but are not limited to:

Duplication of Benefits:

FEMA is legally prohibited from duplicating benefits from other sources. If the Applicant receives funding from another source for the same work that FEMA funded, FEMA reduces the eligible cost or de-obligates funding to prevent a duplication of benefits. For example, FEMA cannot provide Public Assistance funding that duplicates insurance proceeds. When it comes to non-Federal grants and cash donations, duplication depends on whether the funds are provided toward a specific purpose and whether that specific purpose is otherwise eligible for Public Assistance funding.

Loss of Revenue:

FEMA cannot provide Public Assistance funding for revenue lost as a result of the incident. The following are examples of when loss of revenue may occur as a result of an incident:

  • Hospitals release non-critical patients to make room for survivors
  • Hospitals sustain damage that reduces pre-existing capacity
  • States open a toll road for evacuation and do not charge a toll
  • States waive the normal fee for ferry service to encourage alternate transportation after an incident
  • A utility system is shut down as a result of the incident
  • Events are cancelled as a result of an entity using a venue for incident-related activities, such as sheltering

Examples of Common Ineligible Costs include but are not limited to (continued):

Loss of Useful Service Life:

FEMA cannot provide Public Assistance funding for the projected loss of useful service life of a facility. For example, if a road has been inundated by flood waters for an extended period of time, FEMA cannot provide Public Assistance funding for the value of the projected loss of useful life of the road due to the long-term effects the inundation might have on the road.

Tax Assessments:

State, Territorial, Tribal, and Local governments may conduct tax assessments to re-assess real property values after an incident. Costs related to conducting these assessments are not eligible because the assessments are neither essential to addressing an immediate threat to life or improved property, nor connected with the permanent restoration of eligible facilities.

Increased Operating Costs:

Increased costs of operating a facility or providing a service are generally not eligible, even when directly related to the incident. However, short-term increased costs that are directly related to accomplishing specific emergency health and safety tasks as part of emergency protective measures may be eligible.

Related Subjects & Topics

Costs Eligilbilty

This website  is intended as a national source of information about  the delivery of  financial recovery services. It includes resources on eligibility, procurement, grant management delivery, and issues related to various Federal Programs currently supporting FEMA  Public Assistance program  financial recovery for governments and non-profits. This website is not affiliated or endorsed or sponsored  by  FEMA  or any other Federal grant program. The information provided in various webpage documents is derived largely from Federal  published materials. In general, under section 105 of the Copyright Act, such works are not entitled to domestic copyright protection under U.S. law and are therefore in the public domain.  The goal is to help navigate the various Federal websites and summarize grant information and requirements. It does not constitute legal advice or grant management advise and is provided for general informational purposes only. Only the Federal Agency responsible for grants can make determinations on eligibility and grant amounts. You should consult with your professional services advisors and State and Federal Grant Coordinators for more detailed guidance on specific FEMA Public Assistance financial recovery issues.

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