FY 2026 Flood Mitigation Assistance: $400M for NFIP-Insured Flood Risk

FEMA has opened the FY 2026 Flood Mitigation Assistance (FMA) grant program: $400 million to reduce or eliminate repetitive flood damage to buildings insured by the National Flood Insurance Program (NFIP). States, territories, the District of Columbia, and federally recognized Tribes apply to FEMA. Cities, counties, townships, and special districts apply to their state as subapplicants, and the state packages their projects into a single application.

What Changed From FY 2024

If you worked from the FY 2024 notice (see our FY 2024 FMA guide), the three-category structure is the same, but the program is smaller:

• Total funding falls from $600 million to $400 million. Capability and capacity building drops from $60M to $20M, and localized flood risk reduction projects drop from $420M to $260M. The individual flood mitigation floor stays at $120M.
• The localized project cap is $25 million in federal share per subapplication, down from $50 million.
• National priorities for localized projects. The FY 2026 NOFO asks localized flood risk reduction projects to show how they address national-level risk under Executive Order 14239, how they contribute to multistate, regional, or national capabilities (the NOFO names data centers, nuclear power generation, multistate agriculture, and multistate water supply), and how they come as close as possible to a 4:1 benefit-cost ratio. Individual flood mitigation projects are excluded from these requirements.

Because the individual flood mitigation floor held at $120M while the other two pots shrank, buyouts, elevations, and floodproofing of repetitively flooded homes now make up a larger share of the program.

Who Can Apply

Every applicant and subapplicant must participate in the NFIP and not be withdrawn, on probation, or suspended. Check your status in FEMA's Community Status Book.

Applicants (apply directly to FEMA)

• States
• District of Columbia
• U.S. territories
• Federally recognized Tribal Nations

Each one designates a single agency as its FMA applicant, and that agency may submit only one FMA application to FEMA at a time.

Subapplicants (apply through the state, territory, or Tribe)

• Cities, communities, counties, townships, and other local governments
• Special district governments
• Tribal Nations applying through a state

A political subdivision such as a regional flood control district or a county can act as subapplicant if it provides zoning and building code enforcement or planning and community development services for an NFIP community. Multi-entity subapplications are allowed, but one entity must be the primary subapplicant responsible for the award.

Hazard mitigation plan

Subapplicants need a FEMA-approved local or tribal hazard mitigation plan by the application deadline and at obligation. A plan that is "approvable pending adoption" does not count. A multi-jurisdictional plan works only if your jurisdiction participated and formally adopted it; a statewide plan does not. The one exception is a capability subapplication to develop the plan itself. The FEMA Regional Administrator can grant an extraordinary-circumstances exception in limited cases (for example, small impoverished communities of 3,000 or fewer), with a plan due within 12 months of subaward.

The NFIP Policy Clock Already Started

The threshold that will end the most local projects is in the review criteria: every structure included in a project must have an NFIP policy, including a Group Flood Insurance Policy, in effect before the application period opened. The application period opened on October 22, 2026, so a homeowner who buys a policy now will not make their home eligible for this round.

The same date drives scoring. Localized projects earn points for every NFIP policy that is active as of the FMA application start date and verified within the benefiting area. Before you build a property list or a benefiting-area map, pull your NFIP policy and claims data and confirm which structures were insured on that date.

Cost Share

The standard split is 75% federal / 25% non-federal, calculated on the total cost of the activity. The match can be cash, donated or third-party in-kind services, materials, or a combination, and it must consist of costs that would themselves be eligible. Two property categories get a higher federal share if you document that they meet the FMA definitions:

• Severe Repetitive Loss (SRL), up to 100% federal: an NFIP-insured structure with four or more claim payments over $5,000 each totaling more than $20,000, or at least two building claim payments whose total exceeds the structure's market value.
• Repetitive Loss (RL), up to 90% federal: an NFIP-insured structure damaged by flood twice, with average repair cost at or above 25% of market value each time, and with Increased Cost of Compliance coverage on the policy at the time of the second event.

A single subapplication can mix structures with different shares. The NOFO's example pairs $100,000 for an SRL structure at 100% with $100,000 for an RL structure at 90%, giving a combined 95% federal share. Note what cannot be used as match: other federal award funds, third-party in-kind already used to match another federal program, and loans from FEMA's Safeguarding Tomorrow Revolving Loan Fund. If actual costs come in above estimate, FEMA does not increase its share; you cover the overrun.

Three Funding Categories, Selected in Order

FEMA selects subapplications up to $400 million in a fixed sequence: capability and capacity building first, then localized projects, then individual flood mitigation projects.

1. Capability and capacity building (up to $20M)

• Mitigation plans: up to $100,000 per applicant; maximum $50,000 for a state plan and $25,000 for a local plan.
• Technical assistance by states to communities: up to $50,000 per applicant, available only to applicants that received at least $1 million in federal share from the FY 2024 FMA award.
• Project scoping: up to $500,000 federal share per applicant to gather data and develop future projects. A map and geospatial files of the benefiting area are required. FY 2026 scoping projects are not eligible for FY 2026 project funding, so scoping is a play for a later round.

Scoring here is small: 5 points for a comprehensive RL strategy with Substantial Damage procedures, 3 for Community Rating System (CRS) participation, and 3 for Cooperating Technical Partners (CTP) participation.

2. Localized flood risk reduction projects (up to $260M)

These are community-scale projects that must benefit NFIP-insured properties. The NOFO's examples are localized flood control, floodwater storage and diversion, floodplain and stream restoration, stormwater management, and wetland restoration or creation. Non-localized projects are unallowable. Every subapplication needs a map and geospatial file showing the project footprint, the benefiting area, and active NFIP policies where data are available.

The benefiting area must contain a minimum number of active NFIP policies or the project is marked Does Not Meet Hazard Mitigation Assistance Requirements:

Eligible localized projects are then ranked on these points:

• NFIP policyholders: 2 points per active policy in the benefiting area, up to 200
• SRL and RL properties: 10 points per SRL and 5 per RL structure in the benefiting area, up to 175
• High Claims Resilience: 100 points if the applicant has at least $1 million in NFIP claims paid in the 12 months before the application period closes
• Prior FMA capability award: 50 points if the project came from a previous FMA capability and capacity building award
• CRS participation: 25 points
• CTP participation: 25 points

Ties go to the jurisdiction with more NFIP claim dollars paid in the benefiting area over the five years before the deadline. An internal FEMA review panel also reviews each localized project as a whole to confirm it benefits the NFIP.

3. Individual flood mitigation projects (at least $120M)

These projects mitigate specific NFIP-insured structures: acquisition, elevation, mitigation reconstruction, floodproofing, and similar work. To be in the priority pool, at least 75% of the structures in the subapplication must meet one of five SRL/RL definitions, ranked in this order:

1. FMA SRL: two or more claims whose total exceeds the structure's market value
2. FMA SRL: four or more claims over $5,000 each, totaling more than $20,000
3. FMA RL: two floods averaging 25% or more of market value, with ICC coverage
4. NFIP SRL definition
5. NFIP RL definition: two claims of at least $1,000 within 10 years

If requests exceed $120 million, FEMA ranks by the count of qualifying properties (in that priority order) and then by total NFIP claim dollars on the properties. Three cost signals matter:

• Subapplications may be ranked lower if average federal share exceeds $250,000 per elevation or $750,000 per acquisition for single-dwelling units.
• Single-family homes with a building value under $750,000 (replacement cost value from the most recent claim, then actual cash value, then assessed value) get higher priority.
• Final scoring adds 10 points per structure the community determined substantially damaged within five years of the deadline (with a verification letter, no cap), up to 30 points when more than 35% of properties are SRL or RL (15 points at 25–35%), and 20 points if the project came from a prior FMA capability award.

What FMA Will Not Pay For

• Any activity not designed to eliminate the risk of repetitive flood damage to NFIP-insured buildings
• Non-localized flood risk reduction projects
• Exercise-related costs and operational overtime
• Expenses not directly tied to approved flood mitigation activities, including entertainment and excessive administrative costs
• Construction where ground disturbance has already started; non-construction activities already underway may not be considered
• Using FMA funds as match for another federal award, lobbying, or prosecuting claims against the government
• Covered telecommunications equipment (Section 889) and drones made or assembled by a covered foreign entity

Pre-award costs for developing the application are allowable with FEMA's written approval, listed as a separate dated line item. If your subapplication is not selected, those costs are not reimbursed.

Requirements That Catch Subapplicants Late

• Benefit-cost analysis. Projects must show cost-effectiveness using FEMA-approved methods such as the BCA Toolkit. Questions go to BCHelpline@fema.dhs.gov.
• Go/No-Go milestones. Every project's work schedule needs at least one Go/No-Go milestone. Missing one can cancel the subaward, and progress is reported quarterly.
• Acquisitions. A signed Statement of Voluntary Participation for each property (post-award), and deed restrictions keeping the land as open space in perpetuity. Larger relocations must show how the area will be resettled to reduce future risk.
• Design standards. Where a mitigated structure remains, design must meet NFIP standards in 44 CFR Part 60 and the latest ASCE 24 as a minimum. Owners in the Special Flood Hazard Area must carry flood insurance for the life of the structure.
• Personnel information. Subapplicants must submit short bios and resumes covering the entity type, leadership, and board members, with names and addresses. Resumes are subject to approval, and personnel changes during the award must be resubmitted. The NOFO also says subapplicants should not include foreign nationals or noncitizens, and that any who are included must be vetted.
• Grant writer conflicts. FEMA treats a contractor who helps develop a grant application, project plan, or budget as having an organizational conflict of interest. That contractor cannot be paid with federal funds to perform the resulting work unless a single properly procured contract covered both.
• Environmental and historic preservation. NEPA information is part of the FEMA GO subapplication, and projects in a floodplain or wetland go through the 8-step review under 44 CFR Part 9.
• Buy America. Iron, steel, manufactured products, and construction materials in infrastructure projects must be produced in the United States, unless FEMA grants a waiver.

Management Costs

States can request up to 10% of total costs for recipient management costs, in a separate management-cost subapplication. Subapplicants can request up to 5% of project costs as their own budget line. Combined management costs cannot exceed 15%. Management costs carry the same cost share and count against the category caps, not on top of them.

Submission Mechanics and Timeline

1. Registrations: UEI and active SAM.gov registration (the NOFO says several weeks), an EIN, a Login.gov account, and FEMA GO registration with an Authorized Organizational Representative. FEMA estimates registration can take up to four weeks.
2. Your state's process: subapplicants submit to the state, territory, or Tribal applicant in FEMA GO on that agency's schedule. Ask your State Hazard Mitigation Officer for the internal deadline.
3. Subapplication types: plans go in a "plan" subapplication, state technical assistance in "technical assistance," scoping in "project scoping," localized and individual projects in "project," and applicant management costs in "management costs."
4. Properties section: property projects must list accurate NFIP policy numbers and SRL/RL numbers.
5. Federal deadline: the state submits the full application in FEMA GO by 3:00 PM ET on February 26, 2027. System problems must be reported to FEMA by that same time.

After review, each subapplication is marked Identified for Further Review, Not Selected, or Does Not Meet HMA Requirements. Requests for reconsideration based on a technical or procedural error go to the FEMA Regional Office within 60 days, through your state. Awards must be accepted within 30 days in FEMA GO. Financial and performance reports are quarterly.

Practical Guidance for FY 2026 Subapplicants

• Call your SHMO this week. The state's internal deadline, not February 26, is the one you need to plan to.
• Confirm your hazard mitigation plan is approved and adopted. Check the expiration date against both the deadline and the expected obligation date.
• Build the property list from October 22 policy data. Structures that were not insured when the period opened cannot be included, and policy counts set both your localized-project tier and your score.
• Check the $1 million claims test. The 100-point High Claims Resilience bonus is the largest single item on the localized scoring sheet.
• For individual projects, keep average costs under the signals. $250,000 per elevation and $750,000 per acquisition are the levels above which FEMA may rank lower.
• Document substantial damage determinations. Ten points per structure with no cap is the most open-ended score in the program.
• Procure your grant writer and engineer carefully. A consultant who drafts the application cannot be paid federal funds for the work unless a single procured contract covered both.

Contact Information

• Program questions: your FEMA Regional Office or State Hazard Mitigation Officer
• Benefit-cost analysis: BCHelpline@fema.dhs.gov
• FEMA GO help desk: femago@fema.dhs.gov, (877) 585-3242, weekdays 9 AM to 6 PM ET
• FEMA Grants News: fema-grants-news@fema.dhs.gov, (800) 368-6498
• Environmental and historic preservation: FEMA-OEHP-NOFOQuestions@fema.dhs.gov

How Avila Can Help

FMA is a data-heavy subapplication: NFIP policy and claims records, a benefiting-area map, a benefit-cost analysis, and a property list that has to match FEMA's definitions exactly, all due to your state well before February. Avila helps local governments find programs like FMA, organize the documentation, draft the narrative, and track the award once it is made. Book a demo to see how it works.

For related FEMA mitigation guides, see our FY 2024 FMA guide, the BRIC program guide, and our FHWA PROTECT resilience grants guide. For registration help, see SAM.gov registration.