FEMA makes changes to disaster aid
Last month the Federal Emergency Management Agency, or FEMA, announced reforms to its assistance policies.
The changes are meant to ease the maze of paperwork people must navigate to get aid after a disaster.
“The limitations on federal assistance have frustrated survivors and delayed recovery for far too long,” FEMA Administrator Deanne Criswell said in a statement.
Some of the changes likely would have helped residents of Western Alaska trying to recover losses in the aftermath of ex-Typhoon Merbok, but the reforms are not retroactive. They will only apply to new disasters declared on or after March 22, 2024.
FEMA will no longer require people to apply for a loan from the Small Business Administration, or SBA, before being considered for certain assistance from FEMA. The agency said this policy created “significant confusion” for applicants who didn’t want an SBA loan but still had to apply for one.
Homes with pre-existing damage will now be eligible for more assistance under FEMA’s new “habitability” criteria.
“Previously, if a home had a leaky roof prior to a disaster, that area of the home would not qualify for FEMA supported repairs,” a fact sheet from FEMA said. “These changes mean that survivors who need to fix a disaster-damaged home, may qualify for FEMA support, to include home repair regardless of pre-existing conditions, so the home is in a safe and sanitary condition.”
FEMA said this new policy also makes it possible for people to fund more mitigation measures to prevent future damage. Survivors with disabilities will be able to make accessibility improvements with their assistance, too.
The agency created a new benefit called Displacement Assistance which offers up-front funds to help cover costs for people who can’t go back home after a disaster.
Another change offers more help for people whose insurance policies don’t cover the extent of disaster damage.
“Previously, if a survivor received $42,500 from their insurance company (the 2024 maximum amount of money Congress authorizes FEMA to provide for repairs), a household was ineligible to receive additional assistance,” FEMA said in its announcement. “It did not matter if the insurance payment would not cover all rebuilding costs or if the survivor had losses not covered by insurance. Under this amended approach, financial assistance is now available up to the $42,500 cap, to cover costs not reimbursed by insurance including deductibles and underinsured losses.”
Alaska has its own disaster assistance program, and the state has coordinated with FEMA to try to address gaps in coverage, said Jeremy Zidek, a public information officer with the Alaska Division of Homeland Security and Emergency
Management.
“I think it’s really kind of too early to say which policy changes will benefit Alaskans the most, but certainly, we are happy to see these changes and continue to work with FEMA to try to implement them here in Alaska,” Zidek said. “A lot of the things that are in the changes to FEMA’s individual assistance programs are things that we’ve advocated for and had had exemptions in the past.”
For example, he pointed to FEMA’s new flexibility in the documentation it will accept to establish proof of residence or ownership.
“That was kind of in practice here in Alaska, but now it has kind of been formalized with the changes to their program,” Zidek said, noting that sometimes homes are multi-generational, and occupants don’t have formal titles or lease documents.
He also commended the changes FEMA made to help entrepreneurs after a disaster. Previously, self-employed individuals had to apply for an SBA loan to cover all business losses. But now they’ll be able to apply for some initial federal support to replace damaged tools and equipment, up to the $42,500 maximum cap.
“Here in Alaska, lots of times people will have home businesses, and some of their personal possessions are mixed with their business possessions,” Zidek said. “And this is going to give FEMA greater flexibility to look at our unique businesses and environments here in Alaska, and see if they can use their programs to provide assistance.”
Zidek also wanted to remind residents that these assistance programs are not designed to “make people whole” after a disaster. He said only comprehensive insurance could fully cover losses, though he acknowledged that insurance prices have gone up as the costs of construction, labor and transportation have also gone up in the state.