State and Local Funding Resources - Overview

This section provides information on state-level funding sources that may be available during the recovery process. Information about this funding, as well as the availability and extent of this funding, varies by state, and thus this section does not provide specific funding information for all states. Instead, it presents a general scenario for funding availability at the state level. Also provided in this section, by Adobe pdf, is contact information for the Emergency Management offices in each state, so that you may contact your state's office directly to inquire about the programs that are specific to your state. Additionally, this section provides case studies that examine states' responses to various disasters.

In the event that a Presidential Declaration is made for a disaster, a state becomes eligible for Federal Emergency Management Agency (FEMA) Public Assistance (PA) cost-sharing grants. In many cases, these grants require state match funds of 25%, although in cases of extreme devastation the cost-sharing requirement may be waived or reduced. States typically have a Disaster Emergency Fund, which gets regularly appropriated by the state government, that can be used to finance recovery efforts and to match grant dollars provided by the Federal government, per program requirements. The amount that these funds contain varies by state; states that are more vulnerable to disasters may place greater amounts of money in their fund than states that have not typically been victim to many disasters. In most cases, if this funding is not enough, or the state requires additional recovery funding that cannot be acquired from other sources, the Governor (or another similar state government official) has the authority to allocate additional state funding for recovery assistance.

For some states, the availability of state funding sources ends with the Disaster Emergency Fund. For others, however, additional resources may also be available for the recovery process, including additional funding from different state departments (ex. the state Department of Transportation) for specific types of projects. For example, as directed by the Minnesota Statutes Chapter 162.06 and 162.12, the Minnesota Department of Transportation administers disaster assistance funds to state-aid roads and streets. In other cases, there may also be funding available from the affected counties or other localities, local private organizations, and non-profit agencies. Additionally, in the aftermath of a large disaster, some states opt to create a new funding program specifically targeted towards raising and allocating money for the recovery process.

In the event that a Governor's Declaration is made, but not a Presidential Declaration, disaster recovery funding comes first from the affected locality, as well as the area's respective county/parish. If these resources have been exhausted, then funding may also be provided via the aforementioned state Disaster Emergency Fund. Other state level funding sources may be available from various state departments, as well as from federal agencies (for example, the Federal Highway Administration (FHWA) Emergency Relief (ER) funds do not require a Presidential Declaration), depending on the type of recovery projects being undertaken. Additional funding and resources may also be sought out from private organizations and non-profit agencies.