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FEMA to Change How Disaster Funds are Disbursed

Craig Fugate, FEMA

According to Fiercehomelandsecurity.com, Federal Emergency Management Agency Administrator Craig Fugate recently told a House panel the agency can change the way it disburses construction project funds from the disaster relief fund.

Fugate told a House Transportation and Infrastructure subcommittee the money currently reimburses the total cost of a project, which leads to some projects remaining open for a long period of time and requires a high-degree of administrative, oversight and review costs.

FEMA now wants to break up large projects into two parts, which includes a design and construction phase. Fugate explained the agency would make one payment at the start of the second phase and that the cost of the two-phase projects would be far less than the current one-phase system.

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