FEMA Urges You to Spend Disaster Funds Wisely

Release Date Release Number
006
Release Date:
May 13, 2021

Clanton, Ala. – As survivors start to receive help for rental assistance and home repairs, be assured federally approved disaster assistance funds are tax-free, and grants do not have to be repaid. However, FEMA urges you to use the funds quickly, wisely, and only for disaster-related expenses. Here’s some helpful tips below:

FEMA will send you a letter listing approved uses if you were awarded a grant, to include:

  • home repairs (e.g., structure, water, septic and sewage systems)
  • rental assistance for a different place to live temporarily
  • repair or replacement of a damaged primary vehicle
  • uninsured out-of-pocket medical expenses for an injury caused by the disaster
  • repair or replacement of occupational specialized tools
  • essential educational materials (e.g., computers, schoolbooks, supplies)
  • moving and storage expenses related to the disaster
  • and other disaster-related expenses 
     
    You may spend your FEMA grant in any way that helps you achieve the goal of permanent, safe, sanitary, and functional housing. Remember to keep all receipts for verification of how you spent the disaster funds.
  • Rental assistance grant provides temporary housing when a disaster leaves your home uninhabitable or inaccessible.                                                                                    
  • As a homeowner or renter, you can choose to rent an apartment, house, mobile home, or some other temporary rental unit.
  • If you intend to seek continued rental assistance, you will need receipts to show you used the grant for rent.

Disaster grants are not for regular living expenses, such as utilities, food, medical or dental bills, travel, entertainment, or any discretionary expenses unrelated to the disaster.

It is important to remember that federal law prohibits duplicating federal grants from other sources. FEMA also encourages you to keep your receipts for three years to show how you spent the funds.

When you get a letter from FEMA, read it carefully. If you have any questions, call the FEMA Helpline, 800-621-3362. TTY users can call 800-462-7585 6 a.m. to 10 p.m. central time, seven days a week.

For referrals to Alabama’s health and human service agencies as well as community organizations, dial 211, text 888-421-1266, or chat with referral specialists via www.211connectsalabama.org.

For more information on Alabama’s disaster recovery, visit ema.alabama.gov, AlabamaEMA Facebook page, www.fema.gov/disaster/4596 and www.facebook.com/fema.

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FEMA’s mission: Helping people before, during, and after disasters.

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