Disaster Assistance Policy Discretion and Cost Reasonableness Standards

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Restore Equitable Access to Federal Disaster Relief Funds

AKA “Eliminate FEMA’s Discretionary Red Tape”


Which agency/agencies promulgated the regulation? *
Federal Emergency Management Agency (FEMA), Department of Homeland Security
Which title, parts, and/or sections of the Code of Federal Regulations (C.F.R.) should be rescinded? *
44 CFR Part 206, Subpart B—specifically remove §§ 206.48 and 206.226.
What is your name?
—OPTIONAL--
Is your proposed rescission a notice of proposed rulemaking, final rule, direct final rule, interim final rule, or interpretive rule? *
Notice of Proposed Rulemaking
What is the name of the regulation being rescinded, if applicable? *
Disaster Assistance Policy Discretion and Cost Reasonableness Standards
Please provide a short summary of the justifications for the rescission. *
FEMA’s §§ 206.48 and 206.226 grant overly broad authority to deny aid based on subjective cost-reasonableness and “duplicative benefit” assessments. These provisions have been used to delay or block funding for low-income and minoritized communities, undermining equitable disaster recovery and FEMA’s statutory mission.
Please insert the address of the agency. [NPRM, DFR, and IFR only]
500 C Street SW, Washington, DC 20472
Please insert the contact information for the agency. *
Phone: (202) 646-2500 Email: FEMA-Regulations@fema.dhs.gov
What is the background for the regulation being rescinded? *
Under the Stafford Act, FEMA administers federal disaster assistance to states and localities. In Subpart B of Part 206, FEMA established cost-reasonableness and duplicative-benefits standards (§§ 206.48, 206.226) to control program integrity—but over time these criteria have been applied in ways that restrict aid contrary to equitable recovery goals.
Explain the reasons for the rescission. *
– Subjective “cost reasonableness” reviews have delayed funding disbursement to communities lacking technical capacity. – “Duplicative benefit” rules have been invoked inconsistently to deny aid to vulnerable households. – Removing §§ 206.48 and 206.226 refocuses FEMA on statutory eligibility criteria and ensures timely, equitable access to disaster assistance.
Describe the text of the relevant C.F.R. provisions as it will exist after the rescission. *
The remainder of 44 CFR Part 206, Subpart B will remain intact. §§ 206.48 (“Cost Reasonableness Determinations”) and 206.226 (“Duplicate Benefits”) will be struck; cross-references to these sections elsewhere will be renumbered or amended accordingly.
Please insert the name of the current agency head. *
David Richardson
Please insert the title of the agency head. *
Acting Head of FEMA

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