Appendix G › IV. Use of Funding; Excess Funds

What can we spend fixed cost funds and excess funds on?

FEMA term

Use of fixed cost and excess funds

Short answer

Fixed cost funds can be shared across all your alternative procedures projects for repairs, replacement, new facilities (including land), equipment and cost-effective mitigation. Once that work is done, excess funds can also pay for mitigation on undamaged facilities, insurance premiums, training, disaster planning and PA staff salaries, but never for debt, operating costs, budget gaps or the local cost share.

What FEMA requires

Fixed cost funds may be shared across all alternative procedures projects for repair, restoration or replacement; new facilities including land acquisition; equipment; or cost-effective hazard mitigation.
If mitigation funding is included, you must complete the approved mitigation scope to keep that funding.
Excess funds may be used, once the approved scope is complete, for cost-effective risk reduction and to improve future PA operations or planning, as shown in the table.
Submit a proposed scope and timeline for excess funds to the recipient within 90 days of completing your last alternative procedures project; the recipient forwards it to FEMA within 180 days. You can request an extension.
FEMA reviews proposed uses for reasonableness and sets a completion deadline within the disaster’s period of performance.
Category I projects cannot be included in alternative procedures projects. All work must otherwise be PA-eligible.

<table class="pt-table"><thead><tr><th>Work or cost</th><th>Fixed cost funds?</th><th>Excess funds?</th></tr></thead><tbody><tr><td>Restoring disaster-damaged facilities and equipment</td><td>Yes</td><td>Yes</td></tr><tr><td>Alternate projects in declared areas (equipment, new facilities, improving undamaged facilities such as shelters and EOCs)</td><td>Yes</td><td>Yes</td></tr><tr><td>Cost-effective mitigation for undamaged facilities</td><td>No</td><td>Yes</td></tr><tr><td>Future insurance premiums, including obtain and maintain requirements</td><td>No</td><td>Yes</td></tr><tr><td>Response and recovery training, including grants management and procurement courses</td><td>No</td><td>Yes</td></tr><tr><td>Planning for future disasters (debris, mitigation, recovery and emergency plans, exercises)</td><td>No</td><td>Yes</td></tr><tr><td>Salaries for PA or emergency management staff</td><td>No</td><td>Yes</td></tr><tr><td>Facilities ineligible for failing earlier obtain and maintain requirements</td><td>No</td><td>No</td></tr><tr><td>Paying down debt, operating expenses, budget shortfalls</td><td>No</td><td>No</td></tr><tr><td>Non-federal cost share of FEMA or other federal awards</td><td>No</td><td>No</td></tr></tbody></table>

Documentation

A proposed scope of work and timeline for any excess funds, submitted to the recipient within 90 days of completing your last alternative procedures project, and the recipient’s submission to FEMA within 180 days.

Watch out · Govstar practitioner advice

Excess funds have their own clock: a proposed scope and timeline to the recipient within 90 days of finishing your last alternative procedures project. Missing it can cost you the savings, so plan the excess-fund uses before the last project closes.

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.