Detailed Discussion
Examples of Common Ineligible Costs (1 of 2)
The Stafford Act authorizes FEMA to provide Public Assistance funding for specific work performed as a result of the incident. It does not authorize FEMA to provide Public Assistance funding for all losses or costs resulting from the incident.
Examples of Common Ineligible Costs include but are not limited to:
Duplication of Benefits:
FEMA is legally prohibited from duplicating benefits from other sources. If the Applicant receives funding from another source for the same work that FEMA funded, FEMA reduces the eligible cost or de-obligates funding to prevent a duplication of benefits. For example, FEMA cannot provide Public Assistance funding that duplicates insurance proceeds. When it comes to non-Federal grants and cash donations, duplication depends on whether the funds are provided toward a specific purpose and whether that specific purpose is otherwise eligible for Public Assistance funding.
Loss of Revenue:
FEMA cannot provide Public Assistance funding for revenue lost as a result of the incident. The following are examples of when loss of revenue may occur as a result of an incident:
- Hospitals release non-critical patients to make room for survivors
- Hospitals sustain damage that reduces pre-existing capacity
- States open a toll road for evacuation and do not charge a toll
- States waive the normal fee for ferry service to encourage alternate transportation after an incident
- A utility system is shut down as a result of the incident
- Events are cancelled as a result of an entity using a venue for incident-related activities, such as sheltering
Examples of Common Ineligible Costs include but are not limited to (continued):
Loss of Useful Service Life:
FEMA cannot provide Public Assistance funding for the projected loss of useful service life of a facility. For example, if a road has been inundated by flood waters for an extended period of time, FEMA cannot provide Public Assistance funding for the value of the projected loss of useful life of the road due to the long-term effects the inundation might have on the road.
Tax Assessments:
State, Territorial, Tribal, and Local governments may conduct tax assessments to re-assess real property values after an incident. Costs related to conducting these assessments are not eligible because the assessments are neither essential to addressing an immediate threat to life or improved property, nor connected with the permanent restoration of eligible facilities.
Increased Operating Costs:
Increased costs of operating a facility or providing a service are generally not eligible, even when directly related to the incident. However, short-term increased costs that are directly related to accomplishing specific emergency health and safety tasks as part of emergency protective measures may be eligible.