Presidential Memo Allows FEMA To Pay 100% Cost Share

The COVID-19 pandemic has been extremely challenging for many of us, but state, local and tribal governments have really struggled to deal with financial and programmatic disruptions.

These governments did receive a boost of sorts recently as President Biden issued the Memorandum on Maximizing Assistance from the Federal Emergency Management Agency (FEMA), which will allow FEMA to increase its support to state, local, tribal and territorial governments through additional federal funding, and by enabling FEMA to pay 100% federal funding for the costs of activities that have previously been determined eligible, from the beginning of the pandemic in January 2020 to Sept. 30, 2021.

This means that all work eligible under FEMA’s existing COVID-19 policies, including increasing medical capacity, non-congregate sheltering and emergency feeding distribution will be reimbursed at 100% federal share. For projects that have already been approved, FEMA will amend the existing awards to adjust the federal funding amounts. No action will be required by the applicants.

In addition, the directive allows FEMA to expand the activities eligible for reimbursement for work conducted after Jan. 21, 2021, until Sept. 30, 2021. Specifically, the costs to support the safe opening and operation of eligible schools, child-care facilities, healthcare facilities, non-congregate shelters, domestic violence shelters, transit systems and other eligible applicants will be eligible after Jan. 21. This may include funding for the provision of personal protective equipment, disinfecting services and supplies. These costs will also be reimbursed at 100% federal share.

Going into this week, FEMA said it has provided more than $2.29 billion for expenses related to COVID-19 vaccination at 100% federal cost share.

FEMA officials noted that they will issue an amended COVID-19 policy soon to implement this directive. The battle to fight this pandemic is ongoing and hopefully, as the year goes on, we will see some progress. Until then, any assistance provided to state, local and tribal governments will definitely be welcomed.

Join us for our following Thompson Grants events:
Virtual Federal Grants Forum | February 23-25, 2021
Subaward Compliance Management: How to Effectively Monitor Subrecipients | March 25, 2021