FEMA reform · Funding routesFEMA Review Council · Recommendation 6

RAPID Explained

The Reformed and Partnered Initiative for Disasters (RAPID) is the FEMA Review Council’s proposal to replace Public Assistance with a formula-based block grant to the state, paid within 30 days of a declaration. This page explains how it would work, what would change for local governments, and what you can prepare now.

Status: a recommendation, not law (November 2026)

The Council approved its final report on May 7, 2026. Replacing Public Assistance would require an act of Congress; the Council called for phasing its reforms in over two to three years.
H.R. 4669, the FEMA Act of 2025, takes a different approach (upfront grants based on cost estimates) and is pending in the House. See Block Grants and Upfront Grants.
Details on this page come from the Council’s report. The public draft (April 22, 2026) matches the final report’s published terms; check the final text before relying on a specific detail.

30 daysFederal funds transferred to the state treasury after a major disaster declaration

50–75%Federal share of the parametric amount, rising with state performance

1 yearCPA audit accounting for every project and cost

8 yearsAll funds spent or returned, with a final closeout audit

1How RAPID would work

Council report, Rec. 6 & App. B

RAPID would keep the presidential declaration but replace FEMA’s project-by-project damage assessment with a parametric amount: a dollar figure set by a formula from objective, independently verifiable data such as population affected, wind speed, flood depth or earthquake magnitude. The formula itself has not been written; the Council recommends that the future agency develop it with states, tribes, territories and the private sector, using data from the authoritative federal source for each hazard.

The Council’s worked example

A hurricane with Category 3 winds hits Florida. The parametric model projects $300 million in damage, about $13 per capita for 23 million residents.
The governor requests a major disaster declaration. Authorization rests on two showings: evidence the parametric trigger occurred, and evidence that response needs exceed state and local capacity.
Within 30 days the agency transfers 50–75% of the parametric amount. As a “high performing state,” Florida receives 75%: $225 million.
Florida decides project eligibility, uses its own environmental review and its own procurement rules (not 2 CFR Part 200), and distributes funds by disaster-caused need.
Within one year, Florida delivers a certified audit accounting for every project.
Under-runs may go to mitigation or insurance. For over-runs, the report’s example lets a state request up to the remaining 25% of the parametric amount; the recommendation text says additional federal funding is not available for overruns, with a higher share possible for “High-Performance” states. This point needs clarification in any legislation.
All money must be spent within eight years; any residual is returned with a final certified audit.

Eligibility would be simpler, not gone. The state would certify four things for each project: an eligible applicant, an eligible facility, eligible work (emergency or permanent) and eligible cost (necessary, reasonable and documented). The current categories and facility-type rules would give way to an outcome test: restoring public function and safety.

2What would change from Public Assistance

Side by side

Topic	Public Assistance today	RAPID as proposed
Who receives funds	Recipient (state) passes grants to each applicant, project by project	Lump sum to the state treasury; the state allocates to local governments and nonprofits
Timing	After damage is documented and projects are obligated; months to years	Within 30 days of the declaration
Amount based on	Eligible cost of each project	A parametric formula for the event, statewide
Federal share	At least 75% of eligible cost	50% to 75% of the parametric amount, by state performance
Declaration factors	Statewide per capita indicator ($1.94 for FY 2026) and other factors	Indicator reset to $2.99 for missed inflation, plus a minimum annual state disaster expenditure
Procurement	2 CFR Part 200 standards	State procurement rules
Environmental review	Federal NEPA, Section 106, ESA and related reviews	State programs certified in advance, in lieu of federal review
Insurance	Proceeds reduce eligible cost; obtain-and-maintain checked by FEMA	Proceeds do not reduce the parametric amount; insurance required and verified through the state audits
Oversight	FEMA reviews, OIG audits, project closeout	Two state CPA audits (one year and closeout); the federal audit eliminated
Mitigation	Section 406 on each project; HMGP after the event	Under-runs may fund mitigation; HMGP replaced by a 5% Rapid Mitigation Advance and a 10% Strategic Mitigation Allocation (the R3P program)

The shift that matters most to local governments: today, FEMA’s obligation follows each eligible project’s cost. Under RAPID, the federal contribution is fixed by the formula, and the state decides how it is divided. A local government’s recovery would depend on the formula, the state’s performance share and the state’s allocation method, not on its own documented damage.

4Insurance and the asset registry under RAPID

Council report, Rec. 6

Insurance

Proceeds would not cut the payout

Because the parametric amount is not reduced by insurance, every insured dollar would be additive. That reverses today’s incentive, where insurance proceeds reduce the FEMA grant.

Registry

A public, centralized asset registry

States may be required to keep and publish a digitized registry of all public and nonprofit facilities receiving permanent repair funding, with insurance details, applied retroactively.

Self-insurance

Risk pools and declared retention

A template for approving self-insurance plans and risk pools, and a requirement that every jurisdiction declare its self-insured amount. Unused funds could seed a new pool.

This is why GovStar treats the UNIFORMAT II Replacement Valuation Model, the statement of insured values and the asset registry as one record: under RAPID it would be the main evidence that a jurisdiction’s share of the state’s allocation is fair.

5The debate

Supporters and critics

The case for RAPID

What supporters point to

Speed and certainty: cash in weeks instead of reimbursements that can take years, reducing borrowing by local governments.
Lower overhead: the report cites about $21 billion in grant management and project management costs and roughly $11 billion in FEMA administration on $180 billion of PA over five years.
State control: local priorities, state procurement and certified state environmental review.
Backlog relief: more than 600 open disasters and about $54.8 billion in unliquidated obligations on overdue projects.
Precedents: the Coronavirus Relief Fund, CDBG and parametric insurance.

The concerns

What critics raise

Basis risk: public power groups note formula payouts average out across an insurer’s large portfolio but not for one utility or one city.
Lower federal share: a 50% floor replaces today’s 75% minimum; one advocacy analysis estimates Texas would have received almost $1 billion less after Hurricane Harvey.
Unwritten formula: the report leaves the parametric model to be developed later.
Estimate risk: CRS notes that past awards based on large upfront estimates have seen delays and cost overruns.
Overrun exposure: local governments that cannot contract without appropriated funds could stall if their allocation falls short.

6Local share simulator

Interactive tool

What would your jurisdiction carry under RAPID vs. today’s PA?

Enter a statewide parametric amount, the state’s performance share, the portion of the state’s allocation you would expect to receive, and your own restoration cost and insurance. RAPID’s formula and each state’s allocation method do not exist yet, so the allocation percentage is your assumption. The PA comparison uses the 75% minimum federal share and ignores other adjustments.

Statewide parametric amount ($)

The Council’s example uses $300 million.

State performance share (%)

50% floor; 75% for high performers.

Your share of the state’s allocation (%)

How the state might divide the funds.

Your eligible restoration cost ($)

From your registry or estimates.

Insurance recoveries ($)

PA federal share (%)

Minimum 75%; can be raised.

Public Assistance today

Eligible cost after insurance: –
FEMA share: –
Insurance recovery: –
Your local cost: –

RAPID as proposed

Federal amount to the state: –
Your allocation from the state: –
Insurance recovery (not deducted): –
Your local cost: –

7What to do now

Useful under any outcome

Know your exposure

Value your facilities

Build a registry with replacement values by building system.
Test the basis risk for your critical facilities.

Prove your insurance

Clean up insured values

Reconcile your statement of values to replacement cost.
List every obtain-and-maintain requirement by facility.

Be ready in 30 days

Speed up damage data

Practice PDA reporting with your state.
Pre-build your damage inventory from the registry.

Plan the local share

Finance the gap

Size a disaster reserve for a 25–50% non-federal share.
Look at parametric insurance for the gap.

Talk to your state

Ask how it would allocate

How would the state divide a lump sum among jurisdictions?
Would it certify its environmental and procurement programs?

Keep current rules

Nothing has changed yet

Today’s PA rules, deadlines and documentation still apply.
See the Applicant-Managed PA process for new disasters.

8Sources and related reading

Verify before relying

Primary

Report and analysis

Stakeholder views

Comments and analysis

GovStar

In this section

This page summarizes a proposal that may change before, or if, it becomes law. It is not legal advice and is not FEMA guidance. Status checked November 2026. GovStar is independent and not affiliated with FEMA.