OMB Issues Budget Summary for Reduction in Federal Emergency Management Agency State & Local Grants/Training

WASHINGTON, June 18 -- The Office of Management and Budget issued the following report, "A Budget for America's Future Major Savings and Reforms", including a budget summary for the Department of Homeland Security entitled "Reduction in Federal Emergency Management Agency State and Local Grants/Training":

The Budget proposes to reduce the Federal Emergency Management Agency's (FEMA) funds that support training and grants to State and local governments by $535 million compared to the 2020 enacted level. These savings are generated by proposed eliminations and reductions, as well as a proposed 25 percent non-Federal cost match for certain grant programs that currently do not require one. Federal resources must be targeted to those activities that provide clear results and that do not supplant State and local responsibilities.

The 2020 budget request from the Trump administration represents a savings of $535 million.

Justification

The Budget proposes to eliminate funding for FEMA's Continuing Training Grants, National Domestic Preparedness Consortium (NDPC), Center for Homeland Defense and Security (CHDS), Regional Catastrophic Preparedness Grants, Rehabilitation of High-Hazard Potential Dams, and Emergency Food and Shelter Program.

These programs are proposed for elimination because they are duplicative of other Federal grant programs and are primarily the responsibilities of States and localities.

Continuing Training Grants, NDPC, and CHDS are proposed for elimination because other Federal grant funds to State and local entities can be used to pay for training activities, they are duplicative of FEMA's Emergency Management Institute and Center for Domestic Preparedness, and they are State and local responsibilities.

Regional Catastrophic Preparedness Grants are proposed for elimination because those activities can generally be funded under the existing Homeland Security Grant Program or the Administration's proposed National Security and Resilience Grant Program. The Rehabilitation of High-Hazard Potential Dams grant program is proposed for elimination because non-Federal dam rehabilitation and repair is a clear State and local responsibility.

The Emergency Food and Shelter Program is proposed for elimination because it is duplicative of Federal homeless assistance programs administered by the Department of Housing and Urban Development, and because emergency food and shelter is primarily a State and local responsibility.

The Budget further proposes to reduce funding for Emergency Management Performance Grants (EMPG), the State Homeland Security Grant Program (SHSGP), the Urban Area Security Initiative (UASI), Port Security Grant Program, and Transit Security Grant Program (TSGP). The budget proposes a 25 percent non-Federal cost match for grant programs that currently do not require one (SHSGP, UASI, and TSGP) in order to share accountability with State and local partners and to align with other FEMA grant programs.

The Budget also proposes reductions to unauthorized programs (Port and Transit Security Grant Programs). Other reductions to State and local grants are proposed in order to ensure adequate funding for core Department of Homeland Security missions and higher priority investments, and encourage grant recipients to begin to incorporate the full cost of preparedness activities into their own budgets.

Additionally, the Government Accountability Office has repeatedly recommended that FEMA assess national preparedness to prioritize grant funding./1/2/3/4 Though FEMA has begun taking steps to assess how their program funding closes State and local entities' capability gaps, there is much more to be done to determine grant results. The Federal Government should not continue to spend billions of dollars on non-competitive grant programs where FEMA is unable to measure outcomes. Finally, activities currently eligible under SHSGP, UASI, TSGP, and PSGP could -- and should be-- accomplished and measured through the Administration's proposed National Security and Resilience Grant Program.

In 2019 and 2020, the Congress appropriated more than $3 billion in FEMA Federal Assistance. This generous pipeline of funding, when combined with the $2.5 billion requested in the Budget, would ensure adequate resources for State and local projects for the foreseeable future. Of the $5.3 billion in awards made since 2015, recipients of FEMA's two largest grant programs - SHSGP and UASI - are currently carrying $2.7 billion in unspent balances, or 50 percent of awarded funds. The Federal Government cannot afford to over-invest in programs that State and local partners are slow to utilize when there are other pressing needs.

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Citations

1/ Government Accountability Office, FEMA Has Taken Steps to Strengthen Grant Management, But Challenges Remain in Assessing Capabilities, GAO-18-512T, (April 2018).

2/ Government Accountability Office, Homeland Security Grant Program: Additional Actions Could Further Enhance FEMA's Risk-Based Grant Assessment Model, GAO-18-354, (September 2018).

3/ Government Accountability Office, Grants Performance: Justice and FEMA Collect Performance Data for Selected Grants, but Action Needed to Validate FEMA Performance Data, GAO-13-552, (June 2013).

4/ Government Accountability Office, National Preparedness: FEMA Has Made Progress in Improving Grant Management and Assessing Capabilities, but Challenges Remain, GAO-13-456T, (March 2013).

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The budget report can be viewed at: https://www.whitehouse.gov/wp-content/uploads/2020/02/msar_fy21.pdf

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