FEMA Updates Natural Disaster Assistance Program To Speed Up Aid; Cites Climate Change – Forbes Advisor – Technologist

The Federal Emergency Management Agency is making it easier for disaster victims to get the financial help they need.

FEMA has just announced updated disaster relief measures meant to streamline the process of applying for aid. The goal is to provide faster, more flexible support to meet survivors’ housing and financial needs in light of an increase in “extreme weather events fueled by climate change,” it said in a news release.

The agency said it based the changes on feedback it had solicited from disaster survivors. FEMA is fast-tracking the new rule, published Monday in the Federal Register, and expects it to take effect in late March.

“Limitations on federal assistance have frustrated survivors and delayed recovery for far too long,” FEMA Administrator Deanne Criswell said in a statement, adding that officials are “determined to remedy this situation and help reach more people.”

Help for Homeowners Facing Insurance Gaps

An increase in natural disasters has forced insurers to grapple with the financial burden of covering policyholders’ losses from wildfires and hurricanes. A few major insurance companies have even stopped doing business in some states, leaving many homeowners unprotected.

FEMA is authorized to provide survivors with up to $42,500 for rebuilding. Under existing rules, a household that receives $42,500 from insurance is ineligible for additional aid, regardless of whether that sum is enough to cover all losses.

The new system will pay survivors up to $42,500 to defray costs not reimbursed by homeowners insurance, including deductibles and underinsured losses.

Simplified Process for Self-Employed and Gig Workers

Previously, disaster-stricken entrepreneurs and gig workers could not seek out FEMA help for personal property losses until after they had applied for a disaster loan from the Small Business Administration, or SBA—even if they didn’t want one.

Under the new policy, FEMA can offer initial financial support for replacing tools and equipment, subject to a $42,500 cap. Additional federal support is available through SBA disaster loans beyond this limit.

New Rule Amps Up Cash and Housing Assistance

The new rule also expands eligibility for immediate cash assistance.

Cash relief has previously been made available only after certain disasters. Now, for all disasters where individual assistance is given, a program called Serious Needs Assistance—replacing the Critical Needs Assistance program—will provide standardized financial support right away.

Qualifying households will receive a $750 payment. These funds will supplement other assistance based on individual circumstances.

The rule also introduces another new program, Displacement Assistance, to address short-term housing needs for survivors unable to return home.

Additional Changes

• FEMA’s individual assistance program no longer requires late aid applicants to provide documentation justifying their delay.

• FEMA has revamped its website DisasterAssistance.gov to be faster and more user-friendly. The agency anticipates the changes will cut registration time by more than 15%.