	Federal Role in Hazard Mitigation

		Fiscal Management Challenge

Since 1989, the federal government has spent over $96.1 billion for disaster assistance provided by the Federal Emergency Management Agency (FEMA). Mitigation activities are generally categorized as structural and nonstructural. Structural mitigation activities may include physical changes to a structure or development of standards such as building codes and material specifications. Physical changes to a structure could include retro-fitting a building to be more resistant to wind-hazards or earthquakes, or elevating a structure to reduce flood damage. Nonstructural activities may include community planning initiatives such as developing land-use zoning plans, disaster mitigation plans, and flood plans. Other nonstructural community activities may include participating in insurance programs and developing warning systems. Federal disaster mitigation assistance provides funding for both structural and nonstructural mitigation activities. A primary source of federal disaster mitigation assistance is the Hazard Mitigation Grant Program (HMGP), authorized by Section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act). In an effort to alleviate the costs of future disasters through mitigation, Congress amended the 1974 Disaster Relief Act in 1988. While the 1988 amendment established the foundation of hazard mitigation, the devastating disasters of the 1980s and 1990s led Congress to reassess the role of HMGP. 110th Congress Legislation

Legislation introduced in the 110 th Congress would have expanded allowances for the use of HMGP funds administered by the Federal Emergency Management Agency (FEMA) in the Gulf Coast. These bills include the following:
H.R. 1239 , a bill that would establish a homeowner mitigation loan program; H.R. 308 , a bill that would provide a tax credit for mitigation expenditures; and, H.R. 327 , a bill that would create a National Hurricane Research Initiative to improve hurricane preparedness. Though some federal grant programs provide funding for planning and technical assistance, Congress may wish to consider increasing the funding to provide a greater degree of technical expertise in risk assessment and disaster impact predictions. Assistance to Small Businesses

Under current authorities, private businesses are not eligible to apply for HMGP funding. One area of complication is the lag between a major disaster declaration and expenditure of federal hazard mitigation assistance.
Since 1989, the federal government has spent over $96.1 billion for disaster assistance provided by the Federal Emergency Management Agency (FEMA). Over $4.4 billion of the disaster assistance was for hazard mitigation of natural disasters such as floods, wildfires, hurricanes, tornados, and earthquakes. The unpredictable nature of the location and scale of natural disasters poses a significant fiscal management challenge to Congress. To alleviate the federal costs of disasters, Congress amended the Disaster Relief Act of 1974 in 1988 (P.L. 100-707), which was renamed the Robert T. Stafford Disaster Relief and Emergency Assistance Act (commonly known as the "Stafford Act"), to provide federal assistance to mitigate the impacts from future disasters.
Hazard mitigation activities are generally categorized as structural and nonstructural. Structural mitigation activities may include physical changes to a facility or development of standards such as building codes and material specifications. Examples of physical changes to a structure are retrofitting a building to be more resistant to wind-hazards or earthquakes, or elevating a structure to reduce flood damage. Nonstructural activities may include community planning initiatives such as developing land-use zoning plans, disaster mitigation plans, and flood plans. Other nonstructural community activities may include participating in property insurance programs and developing warning systems.
Federal disaster mitigation assistance provides funding for both structural and nonstructural mitigation activities. A primary source of federal disaster mitigation assistance is the Hazard Mitigation Grant Program (HMGP). Legislation introduced in the 110th Congress would have expanded allowances for the use of HMGP funds administered by FEMA in the Gulf Coast. Legislation introduced in the 111th Congress include provisions that would establish a homeowner mitigation loan program (H.R. 1239), provide a tax credit for mitigation expenditures (H.R. 308), and create a National Hurricane Research Initiative to improve hurricane preparedness (H.R. 327).
Issues that Congress may wish to consider, in addition to eligible uses of HMGP funds, include the role of federalism in disasters, the lag between a major disaster declaration and expenditure of HMGP funds, the accuracy of risk assessment and disaster predictions, consolidation of hazard mitigation grant programs under a block grant, and disaster assistance to small businesses.
This report will be updated as warranted by events.