Chapter 9 › II.A Project Thresholds

What makes a project small or large, and is there a minimum?

FEMA term

Minimum project threshold; large and small project threshold

Short answer

FEMA sets two dollar amounts each federal fiscal year. A project below the minimum threshold is not eligible at all. A project at or above the large project threshold is a large project, funded on actual costs; anything between is a small project, funded on the estimate. The amounts change every year, so use the ones for the fiscal year of your declaration.

What FEMA requires

The minimum threshold applies to each project application, not each line item. The total includes hazard mitigation costs and accounts for insurance and other reductions.
FEMA will not combine sites into one project just to reach the minimum, and does not process projects under it unless you intend to appeal scope or costs that would bring it up to the minimum.
The minimum does not apply to donated resources or management costs, but these are only eligible when tied to an eligible project that meets it.
A large project has costs equal to or above the large project threshold; a small project is below it.
For large projects that are not capped, FEMA adjusts estimates to actual incurred costs. For small projects, it does not.
FEMA decides large or small on the final approved eligible amount after adjustments, including insurance reductions.

<table class="pt-table"><thead><tr><th>Project total</th><th>Result</th><th>How funding works</th></tr></thead><tbody><tr><td>Below the minimum threshold</td><td>Not eligible</td><td>No funding, unless an appeal would raise it to the minimum</td></tr><tr><td>At or above minimum, below large project threshold</td><td>Small project</td><td>Funded on the estimate; not adjusted to actual costs</td></tr><tr><td>At or above the large project threshold</td><td>Large project</td><td>Estimate adjusted to actual costs at closeout (unless capped)</td></tr></tbody></table>

Documentation

FEMA publishes the minimum project threshold and the large project threshold for each federal fiscal year on its Per Capita Impact Indicator and Project Thresholds page. Use the amounts for the fiscal year your disaster was declared.

Watch out · Govstar practitioner advice

The size is set on the final approved amount after insurance and other reductions, so an insurance payment can turn a large project into a small one. Small projects are not trued up to actual costs, which makes an accurate estimate up front essential.

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.