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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations
Similarly, the shift from State allocations of grant funding to a competitive-based program that allows grants to be allocated to the most vulnerable properties, resulted in distributional impacts where recipients in certain States receive more in grant funding where others see a decrease.
FEMA was not able to isolate this effect from the effect of changing the cost shares, since they were implemented at the same time.
First, FEMA analyzed the shift in grant priorities as a distributional impact between grant programs. This was done by subtracting the total value
of grants pre-BW12 from the total value of grants post-BW12 for each program, showing the relative decreases and increases by type of FMA grant caused by making the grants competitive and shifting funding to riskier properties.20
The seven-year total share of standard mitigation grants decreased by $226,989,994 post-BW12
$60,036,266$287,026,260.
The seven-year total share of RL
grants increased by $116,958,614 postBW12 $121,467,328$4,508,714.
The seven-year total share of SRL
grants increased by $647,138,779 postBW12 $647,977,892$839,113.

This shows the total seven-year relative increases and decreases between FMA programs in terms of post-BW12 grant funding:
$226,989,994 for standard grants +
$116,958,614 for SL grants +
$647,138,779 SRL grants =
$537,107,399.
Table 6 shows changes in the total number of grants as well as the Federal and non-Federal shares for all grants pre-BW12 and post-BW12 with the percent change in grants and funding.

TABLE 6CHANGE IN AVERAGE ANNUAL NUMBER OF GRANTS AND FUNDING PRE-BW12 TO POST-BW12
2019$
Pre-BW12

Percent pre-BW12

Post-BW12

Percent post-BW12

Percent change
Standard Mitigation Grants per Year
Funding per year

54
$41,003,751

97.2
98.2

19
$8,576,609

21.3
7.2

75.9
90.9

1.3
1.5

8
$17,352,475

9
14.6

+7.7
+13.1

Repetitive Loss Grants per Year
Funding per year

0.71
$644,102

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Severe Repetitive Loss Grants per Year

0.86

1.5

62

69.7

+68.2

Funding per year

$119,873

0.3

$92,568,270

78.1

+77.8

When comparing pre-BW12 standard mitigation grants to post-BW12, the average annual total amount of funding dropped from $41 million to $8.6
million. For RL structures, the average annual amount of funding increased from $0.64 million to $17.4 million. For SRL structures, the average annual funding increased from $0.12 million to $92.6 million when compared to preBW12. This reflects BW12 shifting priority from standard mitigations to RL
and SRL structures. FEMAs data indicate a trend toward both larger project sizes and an increased number of RL and SRL projects.
FEMA then analyzed the distributional impacts of the Federal cost shares that resulted from both the shift in priorities and the changes in cost shares. The Federal cost share for standard mitigation grants remained at 70 percent over the post-BW12 period.
The cost share for RL grants increased from an average of 75 percent pre-BW
12 to 87 percent post-BW12. SRL

grants had an average 92 percent cost share pre-BW12 and a 94 percent cost share post-BW12. FEMA also analyzed the change in the Federal cost share for the three grant categories together, which shows the impact of BW12
changes to cost share amounts as well as shifting funding to RL and SRL
grants, which have higher cost shares.
The total Federal share of all FMA
grant categories pre-BW12 was 70.4
percent $205,762,109 $292,374,087
100. Post BW12, the Federal share was 91.5 percent $758,759,675
$829,481,486 100. The increase in transfers from FEMA to grantees as a result of the changed cost shares and changed priorities, in terms of post-BW
12 grant funding, was $174,739,76191.5
percent 70.4 percent $829,481,486
over seven years, or an average increase of $24,962,823 per year.
Under a no-action baseline, this rule results in no transfer impacts, as FEMA
has already implemented the updated cost share percentages in the 2013 HMA

Guidance. Under a pre-statutory preBW12 baseline, the revisions to the cost share and re-prioritization to grants with higher cost shares result in distributional transfer impacts shifting funding to the most vulnerable properties and an increase in transfers from FEMA to grant recipients. The discounted total seven-year transfers from FEMA to grant recipients are $174,739,761 million $24.96 million annual average.21
Mitigation Planning Grants. BW12
lowered the funding cap on the amount of money that could be used for the flood portion of the individual multihazard mitigation plans from $150,000
in recipients and $50,000 for subrecipients to $50,000 per recipient and $25,000 per subrecipient, but removed a restriction that grantees could only receive funding for planning grants once every 5 years. Lowering the cap on Federal funds results in decreased funding per applicant.
However, FEMA believes this is offset
20 These figures include a large increase in grant funding post-BW12 for the 3 programs resulting from Congressional appropriations that are not due to changes in from this rule. This increase in overall
funding is not held constant in the comparisons shown. From 20062012, total funding was $292.4
million and from 20132019, total funding was $829.5 million.

21 The annualized amounts for 3 percent and 7
percent are equal to the estimated annual transfers of $24.96 million because the amounts for each year are identical and the first year is discounted.

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