Chapter 2 › I.I Arbitration

Can we go to arbitration instead of a second appeal?

FEMA term

Arbitration (Stafford Act § 423)

Short answer

Yes, if more than $500,000 is in dispute ($100,000 in rural areas), you filed a timely first appeal, and FEMA denied it or didn’t decide within 180 days. You choose arbitration or a second appeal, not both, and the Civilian Board of Contract Appeals (CBCA) decision is final.

What FEMA requires

Request arbitration by emailing the recipient, the CBCA and FEMA at the same time, within 60 days of FEMA transmitting the first appeal decision.
If FEMA hasn’t decided the first appeal within 180 days, withdraw it and request arbitration within 30 days of the withdrawal.
The CBCA charges no fee, but each side pays its own costs, such as attorneys, consultants, copying and travel. Those costs are not eligible for FEMA funding.

Documentation

The first appeal and its decision (or proof of 180 days with no decision), the amount in dispute, and the arbitration request sent to all three parties.

Watch out · Govstar practitioner advice

Weigh arbitration early. It is final, there’s no further appeal, and your representation costs are your own, so it works best for large, well-documented disputes.

Govstar summarizes FEMA’s Public Assistance Program and Policy Guide in plain language and links to the official text. Govstar is independent and not affiliated with FEMA. This is general guidance, not legal advice.