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Town learns FEMA misclassification will shift road reimbursements to Federal Aid Highway program
Summary
Town staff told the Select Board that several road projects were classified as Federal Aid Highway "major collectors," prompting FEMA to recall prior payments but creating an opportunity to recover more funds through the Federal Aid Highway disaster program at a higher reimbursement rate.
Town staff told the Select Board that FEMA recently reclassified several town roads as part of the Vermont functional "major collector" network, which means past FEMA awards for four Graniteville Road projects must be returned and the town must submit the work to the Federal Aid Highway program.
The staff member said the change was FEMA’s error on the mapping and that the town expects a better reimbursement rate under the Federal Aid Highway disaster program. “We will actually get 95% because the the Federal Aid Highway for for disasters is 95% or versus 75% for FEMA,” he said, adding the town expects to recover roughly $110,000 for the four projects. He told the board the town has already applied through the Federal Aid Highway system to be reimbursed.
Board members and staff said they do not anticipate a net financial shortfall because the alternate reimbursement rate is higher than FEMA’s share, though the reclassification required administrative work and returning previously disbursed funds while the town pursues reimbursement through the federal-aid process.
