Donated Labor, Resources Help Reduce Financial Burden of Tornado Recovery

Release Date Release Number
NR 037
Release Date:
February 9, 2022

FRANKFORT, Ky. – Volunteers and organizations have been rallying to support Kentucky communities after the Dec. 10-11 tornadoes. Their donations of labor and resources may also count as in-kind contributions and help reduce the Commonwealth’s cost that is owed to the federal government for recovery projects.

After the presidential disaster declaration, many recovery projects came under consideration for federal reimbursement funding under FEMA’s Public Assistance program. The federal cost-sharing program reimburses applicants, including local and state agencies and certain private nonprofits, for not less than 75 percent of eligible costs for disaster-related work such as debris removal or repairs of disaster-damaged infrastructure. State, local and nonprofit applicants are responsible for the remaining 25 percent.

Because of the severity and extent of the early December tornado damage, Kentucky received a break from the federal government.

President Biden authorized 100 percent federal funding for emergency work. However, at this time the full federal coverage is only for 30 days. The Commonwealth can decide which 30-day period they wish to identify to apply for 100 percent funding.

Outside of the 30-day period, the Commonwealth still may be responsible for as much as a 25 percent share for eligible projects.

That’s when donated labor and materials come into play.  

The FEMA Public Assistance program allows eligible applicants to use donated labor and resources to help offset the non-federal share of expenses. For example, if a volunteer performs 40 hours of labor to benefit the recovery, the Commonwealth may apply the dollar-value of that labor to its share of the cost of federal public assistance. The same is true for donated equipment and materials.

Eligible state and local agencies and certain non-profits applying for Public Assistance may provide FEMA with proof of labor and resource contributions. However, they are required to keep careful, verifiable records and follow FEMA’s strict guidelines to get credit. FEMA program delivery managers assigned to Commonwealth agencies and nonprofit organizations can answer questions about this process.

Examples of donated labor and resources that may be eligible for reimbursement include volunteer labor for debris removal, sandbagging, search and rescue operations, shelters and food distribution as well as donated facilities, land, logistical support and equipment. All donated work should follow the Public Assistance program’s eligibility guidelines and must be guided by state/county or local officials.  

Twenty-three Kentucky counties are designated as eligible for at least one category of Public Assistance for the Dec. 10-11 severe storms and tornadoes: Barren, Breckinridge, Bullitt, Caldwell, Christian, Fulton, Graves, Grayson, Hart, Hickman, Hopkins, Logan, Lyon, Marion, Marshall, Meade, Muhlenberg, Ohio, Shelby, Spencer, Taylor, Todd and Warren.

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