What happens to the FEMA hazard mitigation 404 program in the omnibus budget bill? Is the competitive grant program in the bill?

The 2003 Omnibus Spending Bill just recently passed jointly between the U.S. House of Representatives and the U.S. Senate has eliminated the Federal Emergency Management Agency’s (FEMA) Hazard Mitigation Grant Program (HMGP).  For the remainder of fiscal year 2003, a national pre-disaster mitigation fund was established.  The text of this fund in the 2003 omnibus spending bill is as follows:

For a pre-disaster mitigation grant program pursuant to 42 U.S.C. 5131 et seq., $25,000,000, to remain available until expended: Provided, That grants shall be awarded on a competitive basis subject to the criteria in 42 U.S.C. 5133(g): Provided further, That notwithstanding 42 U.S.C. 5133(f), grant awards shall be made without reference to State allocations, quotas, or other formula-based allocations of funds.

This pre-disaster mitigation grant program will be fully established in the fiscal year 2004 budget.  The 2004 budget proposes a new $300 million pre-disaster hazard mitigation program.  This new program will replace the formula-based Hazard Mitigation Grant Program currently funded through the Disaster Relief Fund. The Hazard Mitigation Grant Program was a post disaster program that provided mitigation assistance to states and communities.

The new program will operate independently of the disaster relief programs, assuring that funding remains stable from year to year and is not subject to spikes in disaster activity. Awarding grants on a competitive basis will ensure that the most worthwhile, cost-beneficial projects receive funding.  Experience has shown that the devastation caused by disasters can be minimized through well-designed mitigation programs. This new program replaces the existing formula-based program previously funded through the Disaster Relief Fund with competitive awards to ensure that the most worthwhile and cost effective projects are funded.

From 1993 to 2000, 45 percent of projects funded from FEMA’s Hazard Mitigation Grant Program were either minimally cost effective or not cost effective at all.  The United States General Accounting Office (GAO) submitted a report to the Senate committee on governmental affairs in September of 2002 addressing the issue of changing the HMGP.  In the report, the GAO addresses these changes and the impact that they will have on FEMA's approach to mitigation.  As an example, the GAO raised a red flag to the focus on preventing and preparing for terrorism resulting in less emphasis on natural hazards.  The FEMA Director submitted comments on the draft GAO report, indicating agreement with GAO's assessment that success in reducing disaster losses is affected by both pre- and post-disaster mitigation.

http://www.fema.gov
http://thomas.loc.gov - Bill # H.J. Res. 2 or HR 5605 / S.2797
http://www.gao.gov - Report # GAO-02-1035