FEMA Raises Disaster Grant Threshold to Match Construction Cost Inflation
Published Date: 11/6/2026
Notice
Summary
Starting October 1, 2026, FEMA is raising the cutoff for Small Project disaster grants to $1,130,900. This means state, tribal, local governments, and nonprofits can get more money for smaller disaster repairs thanks to a 3.4% cost increase. If you’re dealing with a disaster declared after that date, this new threshold kicks in to help you recover faster and better!
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Small Project Grant Threshold Raised
For disasters declared on or after October 1, 2026, the FEMA Small Project subgrant threshold is $1,130,900. This applies to state, tribal, and local governments and to owners/operators of eligible private nonprofit facilities under section 422 of the Stafford Act.
Threshold Adjusted Annually Using CPI
FEMA will annually adjust the Small Project threshold to reflect changes in the Consumer Price Index for All Urban Consumers. The adjustment for the 12-month period ending August 2026 is based on a 3.4 percent CPI increase, which produced the $1,130,900 threshold for disasters declared on or after October 1, 2026.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-22697, Notice of Adjustment of Minimum Project Worksheet Amount
Starting October 1, 2026, FEMA is raising the minimum amount for disaster recovery projects to $4,300. This change affects anyone applying for help after major disasters or emergencies declared on or after that date. The increase matches rising costs and helps ensure funds keep up with inflation.
2026-22692, Notice of Award Amount Adjustment for Serious Needs Assistance
Starting October 1, 2026, FEMA is boosting the Serious Needs Assistance award to $820 for people affected by emergencies or major disasters. This change helps cover more costs because prices went up by 3.4% last year. If you’re impacted by a disaster declared after that date, you’ll get a bit more financial help from FEMA.
2026-22693, Notice of Maximum Amount of Assistance Under the Individuals and Households Program
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2026-22694, Notice of Adjustment of Statewide Per Capita Impact Indicator
Starting October 1, 2026, FEMA is raising the statewide per person disaster impact amount to $2.01 to keep up with rising costs. This change affects disaster aid calculations for states after that date, helping communities get fairer funding when disasters strike. The increase reflects a 3.4% rise in living costs over the past year.
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2026-21941, Agency Information Collection Activities: Submission for OMB Review, Comment Request; Application for Participation in the National Flood Insurance Program
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Previous / Next Documents
Previous: 2026-22694, Notice of Adjustment of Statewide Per Capita Impact Indicator
Starting October 1, 2026, FEMA is raising the statewide per person disaster impact amount to $2.01 to keep up with rising costs. This change affects disaster aid calculations for states after that date, helping communities get fairer funding when disasters strike. The increase reflects a 3.4% rise in living costs over the past year.
Next: 2026-22697, Notice of Adjustment of Minimum Project Worksheet Amount
Starting October 1, 2026, FEMA is raising the minimum amount for disaster recovery projects to $4,300. This change affects anyone applying for help after major disasters or emergencies declared on or after that date. The increase matches rising costs and helps ensure funds keep up with inflation.