FEMA reforms Individual Assistance Program

Key Takeaways

The U.S. Federal Emergency Management Agency (FEMA) announced a significant update to its Individual Assistance (IA) Program that will go into effect for all disasters declared on or after March 22, 2024. These IA reforms aim to help survivors recover from disasters faster with new benefits, simplified applications, reduced administrative procedures and widened the scope of eligibility.  

This program update comes in response to the increasing frequency of extreme weather events and draws from feedback collected from disaster survivors, communities and stakeholders, intending to create more equitable outcomes through increased accessibility and eligibility for support post-disaster. 

To provide faster and more flexible assistance, FEMA has introduced two new benefits:

1. Serious Needs Assistance: This replaces the Critical Needs Assistance program, offering a standardized $750 payment to households with serious needs, covering immediate expenses related to sheltering, evacuation, and basic household needs.
2. Displacement Assistance: Recognizing immediate housing needs, this benefit offers upfront funds to eligible survivors, providing flexibility in choosing immediate housing options until they secure a long-term solution.

FEMA is also cutting red tape and expanding eligibility to reach more individuals, including:

• Removing loan application requirements: Survivors are no longer required to apply for a U.S. Small Business Administration (SBA) loan before seeking certain types of financial assistance, simplifying the process.
• Helping underinsured survivors: Streamlining insurance-related rules to assist survivors who don't receive enough insurance coverage, providing financial assistance up to $42,500 for costs not reimbursed by insurance.
• Simplifying assistance for entrepreneurs: Self-employed individuals can now receive initial financial support from FEMA to replace disaster-damaged tools and equipment, streamlining the process to reopen their businesses.
• Expanding habitability criteria: FEMA has broadened the definition of "habitability," allowing support for repairs to homes with pre-existing conditions, eliminating limitations on home repair assistance.

FEMA is also simplifying the application process to meet survivors' individual needs, including removing barriers for late applicants, streamlining temporary housing assistance applications and simplifying the appeals process.

More information about the FEMA IA updates can be found in the FEMA Advisory and the IA Reform One-Pager.