Cedar Rapids to save millions on derecho recovery with FEMA funds

CEDAR RAPIDS — The federal government will cover a larger share of the cost for disasters that occurred in 2020 and 2021, a move that will save Iowa communities millions on 2020 derecho recovery expenses.

A bill signed into law by President Joe Biden last month granted a minimum 90 percent federal cost share for any emergency or major disaster declaration occurring between Jan. 1, 2020 and Dec. 31, 2021 — covering the Aug. 10, 2020, derecho that pummeled parts of Iowa, particularly Cedar Rapids, with hurricane-force winds.

That’s a larger share than the 75 percent the Federal Emergency Management Agency typically takes on. As recently as February, city officials said Cedar Rapids would be on the hook for 15 percent of the derecho recovery costs, between $12 million and $15 million.

City Manager Jeff Pomeranz said this brings the city’s cost share down significantly. He still estimates approximately the city may have to cover $8 million to $10 million for projects that are not FEMA-reimbursable such as damage to bridges and waterways.

The boost to the standard 75 percent federal cost share to at least 90 percent includes FEMA’s Public Assistance, Hazard Mitigation Grant Program and specified Individual Assistance programs authorized under emergency and major disaster declarations.

“The cost-sharing as originally contemplated was going to place significant pressure on the city’s budget and take away from the work of the city,” Pomeranz said. “We appreciate the assistance and it means a lot to us because this community has a lot of needs, and these dollars will help us address those needs.”

The city still is working to receive full reimbursement for approximately $80 million to $90 million in expenses for derecho recovery. But Pomeranz previously said he is “positive about getting the full reimbursement, but it's going to take time going through the federal process.”

Iowa Homeland Security and Emergency Management notified cities that had applied for funding about the additional cost sharing on April 7.

FEMA Administrator Deanne Criswell in March announced this additional disaster funding is available to all states, tribal nations and territories with presidential major disaster and emergency declarations in 2020 and 2021.

“From January 2020 through December 2021, FEMA responded to disasters that have impacted millions of Americans,” according to a FEMA news release. “This additional assistance will help communities across the country recover and build a stronger, more resilient nation.”

The city of Marion will benefit as well from FEMA’s cost share adjustment. Amal Eltahir, assistant to the city manager, said Marion incurred $29 million in costs. Now the city is expecting the entirety of the cost to be reimbursed by funding from FEMA and the state.

Before this recent announcement, Marion officials expected to be on the hook for 15 percent of that total.

Eltahir said the city continues to work with FEMA on project documentation and review, but so far FEMA has obligated six out of 10 projects and reimbursed the city more than $7 million.

“Based on our initial analysis, this announcement equates to an increase of $4 million in the amount being reimbursed to the city for costs we incurred in responding to the derecho,” City Manager Ryan Waller said.

“Members of team Marion are currently following up with the state of Iowa to better understand if this will impact the state’s share of the reimbursement back to our community.”

Lucinda Parker, Iowa Homeland Security and Emergency Management public information officer, said in an email that “FEMA will make the cost share adjustments within their systems and, as FEMA approves additional funding as a result of the adjustment, Iowa Department of Homeland Security and Emergency Management will distribute the funding in accordance with our funding procedures.”

In addition to Iowa, the legislation also is critical for Kentucky as communities in the western part of the state grapple with recovery from deadly tornadoes in December that caused billions in damage.

This assistance is in addition to Biden’s March 1 announcement extending the full federal cost share to 100 percent to support all eligible work under COVID-19 emergency and major disaster declarations through July 1.

Gazette reporter Gage Miskimen contributed to this report

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