President Joe Biden increased the percentage of recovery costs that will be covered by the federal government for the July 2023 flooding that devastated communities across the state to 90%, FEMA announced on Monday.
The previous cost-sharing arrangement for damage that occurred between July 7-21, 2023, required state and local governments to shoulder 25% of eligible costs, but under Biden’s directive, this share is now reduced to 10%.
The change means more federal dollars will be available for rebuilding efforts, from repairing public infrastructure to aiding families with housing needs, according to Doug Farnham, Vermont’s chief recovery officer.
Although the extra aid is earmarked specifically for public bodies, such as municipalities, it will have some side benefits for individuals as well, Farnham explained.
The state budget includes funding to help municipalities pay their 10% cost-sharing portion and stipulates that portion can be reallocated towards housing. “Any money that we don’t use for the state will then be put into housing mitigation projects, so it has a one-for-one indirect benefit to individuals,” Farnham said.
Vermont was eligible for the increased federal share because the costs of recovery from the July 2023 flooding have exceeded $112 million, which is a threshold set by the agency based on population. However, that bump was not automatic.
“It was not an obligation that the president had to approve it, but we are very grateful,” Farnham said.
Read the story on VTDigger here: Federal government boosts support for July 2023 flood recovery effort.