Biden Administration Retroactively Adjusts FEMA's Cost Share to 100% Federal
Since August of 2020, NLC and other state and local groups and emergency management organizations have asked FEMA and Congress to increase the federal cost-share for the COVID-19 Emergency Major Disaster declarations to 100 percent.
During his first week in office, President Biden issued a memorandum that increased FEMA's cost share to 100 percent federal. However, it was not clear if this adjustment would be retroactive. Today, the Biden Administration clarified that FEMA would be "retroactively reimbursing states fully for the FEMA-eligible services – including masks, gloves, emergency feeding actions, sheltering at-risk populations and mobilization of the National Guard - backdated to the beginning of the pandemic in January 2020."
The revised memorandum states that FEMA shall provide a 100 percent Federal cost-share for all work eligible for assistance under Public Assistance Category B, pursuant to sections 403 (42 U.S.C. 5170b), 502 (42 U.S.C. 5192), and 503 (42 U.S.C. 5193) of the Stafford Act performed from January 20, 2020.
Local governments should contact their state emergency management agencies and their regional FEMA offices to ensure they receive the full reimbursement for the cost-share adjustment.