Spend FEMA Money Wisely
Release Date: September 12, 2007
Release Number: 1720-021
» More Information on Ohio Severe Storms, Flooding, and Tornadoes
FINDLAY, Ohio -- People who get disaster grants must follow the letter-the letter from FEMA, that is.
Federal Emergency Management Agency (FEMA) grants come with very few strings. They are tax free and do not have to be repaid. They are not counted as income for welfare or other federal benefit programs. They cannot be garnished or otherwise encumbered.
However, FEMA grants must be used as intended. Every recipient receives a letter about the same time they receive any money. The letter outlines how the money can be spent. It may be for temporary housing, home repairs or disaster-related personal expenses.
The bottom line: All expenditures must be disaster-related.
Any FEMA grant may be subject to an audit. Each recipient is responsible for spending the money as intended. If the grant money is not used as outlined in the letter, a recipient may have to pay it back and may lose eligibility for any further help.
Recipients are strongly encouraged to fully document their disaster-related expenses. They must keep receipts or bills for three years to demonstrate how all of the money was used in meeting disaster-related needs.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Wednesday, 12-Sep-2007 14:08:00