FEMA triples its funding for low-interest loans funding disaster resilience projects

Due to a high level of interest, the Federal Emergency Management Agency (FEMA) is tripling its funding for low-interest loans for disaster resilience projects this year to $150 million. With the beginning of 2024, the agency launched its “Year of Resilience,” which includes a second funding opportunity for the Safeguarding Tomorrow Revolving Loan Fund grant program, according to a statement.

“We listened to our emergency management partners from across the nation and using their guidance, fine-tuned this new program and increased the funding to allow for more under-resourced communities to benefit from this opportunity,” said FEMA Administrator Deanne Criswel in the statemenl. “These low-interest loans will fund even more mitigation projects at the local level, increasing our nation’s resilience to natural hazards and climate change.”  

The program, which is funded by the Bipartisan Infrastructure Law, provides capitalization grants to eligible applicants across the nation. In turn, applicants offer low-interest loans directly to local communities to reduce their vulnerability to disasters, promote equity, foster greater community resilience and reduce disaster impacts. The program has a goal of removing barriers and increasing equitable access to resilience-related funding. 

It’s part of FEMA’s Hazard Mitigation Assistance program, which aims to increase resilience to extreme heat waves, drought, wildfires, floods and hurricanes by paying for “transformational projects that reduce risk to multiple hazards, support adaptation to future conditions and reduce the impact of all disasters on our nation’s most at-risk, underserved and disadvantaged communities,” the statement says.

Eligible applicants include states, territories and federal recognized tribes that have received a major disaster declaration. At the local level, elibile projects must increase the resilience of major economic sectors or critical infrastructure, and reduce the risk of harm to infrastructure. They also must involve a partnership with other eligible entities, and account for local impacts. 

Eligible applicants include states, the District of Columbia, territories and federally recognized tribes that have received a major disaster declaration. Local governments may can then apply for low-interest loans for projects and activities that reduce the effects of natural hazards.

Of the nearly $7 billion available in Bipartisan Infrastructure Law funding to FEMA, $500 million is invested in the Safeguarding Tomorrow Revolving Loan Fund program over five years to reduce disaster suffering and avoid future disaster costs. For the first year of the program, FEMA made $50 million available in capitalization grants. In addition, there are five additional FEMA mitigation and cyber security programs to receive multi-year Bipartisan Infrastructure Law funding.