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FEMA disaster relief fund 'critically low' at about $3.3 billion, Alameda County committee told

Board of Supervisors Personnel Administration Legislative Committee · September 30, 2024
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Summary

County staff and lobbyists told the Board of Supervisors’ legislative committee that FEMA’s disaster relief fund stood at roughly $3.3 billion, requiring damage assessments by OMB/FEMA and likely a congressional supplemental appropriation to reimburse local jurisdictions.

County policy staff and outside consultants briefed the Board of Supervisors’ Personnel Administration Legislative Committee on Sept. 30 that FEMA’s disaster relief fund (DRF) is critically low and that Congress will likely need to pass a supplemental appropriation after damage assessments are complete.

John, a CJ Lake representative, told the committee that FEMA’s posted balance for the disaster relief fund was "about $3,300,000,000," and that the fund does not yet reflect all recent disaster allocations. He said that when the DRF is low, the federal government ‘‘triages’’ funding to immediate disasters while other reimbursements are delayed until Congress refills the fund.

Supervisor Tam pressed the presenters on how depleted the fund is and whether congressional committees were examining insurance‑industry behavior after recent storms. The presenters said committees had not held related hearings this year but that interest could rise after OMB and FEMA complete damage assessments from the recent hurricane impacts; John said OMB will likely transmit an updated request to Congress once assessments take place, a process that could take roughly a month.

Why it matters: local governments typically advance recovery costs and later receive federal reimbursement; a low DRF can delay reimbursements for months or years and may compel lawmakers to draft and pass a disaster supplemental to restore the fund.

No formal county action was taken. Presenters recommended monitoring OMB/FEMA assessment timelines and potential supplemental requests to Congress.