Federalism and FEMA




The costs of a disaster to states and localities can pile up quickly. Federal assistance becomes fully available with the approval of the President and at the request of the governor. Public help for governments to repair facilities is 75% federally funded with local governments responsible for covering the rest (unless the state grants aid or loans). FEMA does not compensate for buildings that have been improperly maintained by the state or local government nor does it pay to upgrade or improve facilities. FEMA coordinates but does not fund disaster assistance provided by the Small Business Administration or the Farmers Home Administration. FEMA grant-in aid funds come from revenue sharing, the Department of Housing and Urban Development and the Department of Transportation. Grants for disaster preparedness can be used by flood control districts.

Many states have disaster relief agencies of their own. In the event of a disaster outside of a state's operating capacity, the director of said agency will advise the Governor whether or not to proclaim a state of emergency. Declaring a state of emergency, upon Presidential approval, entitles a state to federal assistance. It is important to note that proclaiming a state of emergency does not guarantee federal assistance. States also rely on mutual aid agreements, such as the Civil Defense and Disaster Compact. A mutual aid agreement can be between neighboring states, cities, counties and cities, states and cities or an entire region. These agreements allow agencies to share resources so they are better prepared for emergencies.

Local governments have the most immediate responsibility. Four factors shape local disaster response:

  1. The extent of tax base depletion
  2. The scope of lost sales tax revenue
  3. Access to other forms of revenue
  4. Amount of city debt

Having a mostly intact tax base allows local governments to maintain steady revenue stream. Business unharmed by a disaster will be able to continue to generate sales tax revenue. Cities with access to large revenue reserves and strong mutual aid agreements will have greater response capacity. While cities with large municipal debt that would be unable to pay back state or federal loans would be in a difficult situation.

U.S. v. Parish of Jefferson et aledit

This case gave FEMA the right to sue in like order to recover funds paid out in flood insurance claims for flood damage as a result of poor decisions by local officials and developers. The case also gave FEMA the power to sue localities who fail to meet flood plain management requirements.

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