FEMA is launching a notice of intent to fund resilience projects that will make communities safer from natural hazards.
The Safeguarding Tomorrow Revolving Loan Fund program will make no less than $50 million available in capitalization grants to fund low-interest loans to local governments. These loans will allow jurisdictions to reduce vulnerability to natural disasters, foster greater community resilience and reduce disaster suffering.
FEMA expects to publish the program funding opportunity before the end of the calendar year and receive applications through spring 2023.
Under the Infrastructure Investment and Jobs Act of 2021 signed by President Biden in 2021, also commonly known as the Bipartisan Infrastructure Law, Congress appropriated $500 million for the program opportunity, or $100 million per year, through 2026.
FEMA is launching the funding in its first year to increase public understanding and learn from participating communities about how to enhance the program in future iterations.
These capitalization grants complement FEMA’s other hazard mitigation grant programs to empower communities to better withstand a worsening climate.
Funds can be used for hazard mitigation projects that reduce disaster risks for homeowners, businesses, nonprofit organizations and communities. Other uses of loans include satisfying a local government’s non-federal cost-share match for FEMA Hazard Mitigation Assistance programs, update building codes adoption and enforcement, make zoning and land use changes.
FEMA’s Hazard Mitigation Assistance helps communities increase resilience to extreme heat waves, drought, wildfires, flood and hurricanes by funding transformational projects that reduce risk to multiple hazards, support adaptation to future conditions and lessen the impact of all disasters on our nations most underserved residents and disadvantaged communities.
The agency will hold a series of listening sessions with emergency management agencies and state governments. The sessions will gauge interest in this opportunity, identify challenges or barriers to implementing and managing a revolving loan fund and learn and successes from states that currently have revolving loan funds.