Chapter 6 › VII–IX. Disposition

What happens to equipment and supplies we bought with FEMA funds once the disaster is over?

FEMA term

Disposition

Short answer

When FEMA-funded equipment or supplies are no longer needed, you may owe FEMA its share of what is left if the value is $10,000 or more. Local governments and nonprofits can first move equipment to other federally funded programs if they tell FEMA.

What FEMA requires

Equipment is property with a useful life over one year and a unit cost at or above the lesser of your capitalization level or $10,000. Everything else is a supply. Small projects handle fair market value during project formulation, with no reduction for supplies.

<table class="pt-table"><thead><tr><th>Item</th><th>Who</th><th>Rule</th></tr></thead><tbody><tr><td>Equipment</td><td>States, territories, tribes</td><td>Follow your own laws and procedures (tribes without them follow 2 CFR 200.313(c)–(e))</td></tr><tr><td>Equipment</td><td>Local governments, nonprofits</td><td>Calculate current fair market value per item; if $10,000 or more, FEMA reduces funding by its cost share</td></tr><tr><td>Supplies</td><td>All applicants</td><td>Total unused residual supplies; if over $10,000, FEMA reduces funding by its cost share</td></tr><tr><td>Real property</td><td>All applicants</td><td>Get disposition instructions from FEMA</td></tr></tbody></table>

Documentation

An inventory of FEMA-funded equipment and supplies, with fair market value calculations when they are no longer needed.

Watch out · Govstar practitioner advice

Equipment examples include ventilators, hospital beds and refrigerated trucks; laptops, iPads and PPE are supplies. Classify items correctly when you buy them.

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.