FEMA’s DISASTER ASSISTANCE PROGRAM GOT a makeover!

In January of 2024, FEMA issued a press release announcing reforms to the Disaster Assistance Program. FEMA claims to help survivors recover faster. These changes apply to disasters that occur on or after March 22, 2024. Here’s how the reforms will affect you in the future:

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1. Serious Needs Assistance:

   • An immediate check, aka “Serious Needs Assistance:” $750 to cover emergency costs.

   • FEMA is standardizing immediate financial support. The “Critical Needs Program” is now called “Serious Needs Assistance” and will be an immediate $750 check.

   • It aims to help cover immediate expenses related to sheltering, evacuation, and meeting basic household needs.

2. Displacement Assistance:

   • A new benefit aka “Displacement Assistance:” Upfront funds for housing.

   • This is a new benefit. It aims to provide up-front funds to assist with immediate housing options for survivors who can’t return home.

   • It is for costs associated with staying with family and friends until they are able to secure a rental option to focus on their long-term recovery.

3. No SBA Loan App Required:

   • Survivors will NOT have to apply for a SBA Loan to receive assistance.

   • Previously, FEMA required some applicants to apply for SBA loans automatically before FEMA Individual Assistance Relief could be considered. This was confusing for applicants because FEMA required both business owners and non-business owners to apply for loans.

   • This requirement has been removed.

4. No Letter Required for Appealing a FEMA Denial:

   • The process for appealing a FEMA denial is now more simple.

   • This is arguably the biggest change to FEMA Assistance. Previously, if you were appealing a FEMA denial, you needed to submit a signed letter with your appeal.

   • FEMA is removing this letter requirement. Under the new reforms, applicants will be able to submit additional documentation by itself.

5. Insurance Payouts will no Longer Prevent FEMA Assistance:

   • Previously, you were ineligible for FEMA if you received an insurance payout up to the federal cap ($42,500 in 2024).

   • If you received an insurance payout over the $42,500 max, you would be automatically denied by FEMA even if your repairs cost more than this amount. Now, you can still get FEMA funds (in addition) if your repairs cost more than this cap.

6. Survivors with Disabilities Can Now Use Funds to Increase Accessibility:

   • In a huge win for disability rights, FEMA expanded the scope for the use of Individual Assistance.

   • People with disabilities can now renovate their homes to make them more accessible using FEMA funds. Additionally, homes with pre-existing issues, such as a leaky roof, that existed before a disaster can get funding to make repairs.