FEMA: A Higher Education Risk Tool

By Deb Gallagher and Jeb McPherson

By Deb Gallagher

Higher education institutions are facing a new operational reality. Severe weather events, flooding, wildfires, and public health emergencies are affecting campuses with increasing frequency and scale.

According to Climate Central, in 2025, the United States experienced 23 separate weather and climate disasters that each caused more than $1 billion in damages, resulting in approximately $115 billion in total losses.¹

For campuses, disasters do far more than damage buildings, with recovery efforts often reaching tens or hundreds of millions of dollars.

Disasters disrupt enrollment cycles, interrupt research programs, displace students from housing, and strain operating budgets. Laboratories may lose years of research data. Athletic facilities and student housing can become unusable for extended periods. Infrastructure failures can affect entire campus systems.

In this environment, risk managers, CFOs, and governing boards must ensure institutions are prepared to recover efficiently, which includes not overlooking the importance of FEMA’s Public Assistance program in their risk management plan before an event occurs.

How FEMA Public Assistance Supports Higher Education

FEMA’s Public Assistance program provides cost-sharing reimbursement to eligible applicants following federally declared disasters. Public and private nonprofit higher education institutions are eligible FEMA applicants.

FEMA supports several recovery categories:

Debris Removal (Category A)
- Supports clearing roads, walkways, parking areas, and open spaces after disasters.
Emergency Protective Measures (Category B)
- Eligible activities include:
  - Temporary emergency power for critical facilities
  - Security services
  - Stabilization of compromised structures
  - Temporary relocation of students from unsafe housing
  - Temporary shelters for students and the community
Permanent Work (Categories C-G)
- Supports repair or replacement of damaged facilities:
  - Academic buildings
  - Research laboratories
  - Campus utilities
  - Roads and bridges
Hazard Mitigation (Section 406)
- Allows institutions to rebuild stronger after a disaster.
  - Examples include:
    - Elevating mechanical equipment above flood levels
    - Installing flood barriers
    - Reinforcing building systems to withstand severe weather
    - Installing generators for temporary power

Where FEMA and Insurance Intersect

FEMA is a means of last resort after all available property insurance is exhausted. FEMA may reimburse:

Deductibles
Eligible costs that exceed insurance policy limits
Policy exclusions
Hazard mitigation that is not covered by insurance

Important: FEMA funding is not automatic. Eligibility depends on:

Damages resulting from a declared event
Detailed documentation
Procurement compliance
Proper coordination with insurance recoveries

Lessons From Campus Recovery

Flood Recovery Case

A large Midwestern institution experienced widespread campus flooding. FEMA supported much of the recovery, but some replacement facilities were deemed ineligible because they expanded beyond the original pre-disaster structures. As a result, the institution had to secure alternative funding to complete portions of its redevelopment plan.

Pandemic Funding Case

A major West Coast university system relied heavily on Department of Education relief funding for testing programs and protective measures during the COVID-19 pandemic. Later reviews indicated some costs may have also qualified for FEMA reimbursement. Because FEMA was not pursued concurrently, the system may have missed the opportunity to recover millions of additional dollars.

Insurance Coordination Case

After tornado damage at a Southeastern university, auditors determined FEMA reimbursement should have been reduced because insurance proceeds were not properly accounted for. The audit recommended a significant reduction in federal funding, highlighting the importance of coordinating insurance recovery with FEMA claims management.

The takeaway: FEMA eligibility alone does not guarantee recovery. Institutions must also demonstrate disciplined compliance with documentation, procurement, and financial management standards.

Five Questions You Should Ask Before the Next Disaster

Do our emergency procurement procedures meet federal grant compliance requirements under 2 CFR 200?
How will insurance recoveries be tracked and coordinated with FEMA?
Are facilities teams trained to document damage using FEMA’s DDD framework?
Do we have pre-event contracts in place for debris removal, restoration services, and FEMA advisory support?
Has our institution conducted a disaster recovery exercise that includes FEMA documentation and cost-tracking procedures?

Managing FEMA Risk Before Disaster

Institutions that recover most effectively prepare for FEMA before disaster strikes.

Institutions that recover most effectively prepare for FEMA before disaster strikes.

Key steps include:

Align Procurement Policies
- Procurement policies should align with federal grant requirements under 2 CFR Part 200. Emergency contracting shortcuts during disaster response are understandable, but often become a primary source of FEMA funding reductions.
Coordinate Insurance and FEMA Recovery
- Processes should be established to track insurance payments and calculate duplication-of-benefits adjustments. Clear documentation of insurance proceeds prevents audit findings and funding reductions.
Train Facilities Teams on Damage Documentation
- FEMA evaluates damage using a framework known as Damage, Description, and Dimensions (DDD). Training staff to photograph and document damaged buildings can accelerate FEMA reimbursements.
Establish Cross-Functional Recovery Teams
- Institutions benefit from recovery teams across risk management, procurement, finance, facilities, and emergency management. Conducting tabletop exercises that simulate campus disasters allows institutions to test FEMA documentation and cost-tracking procedures before a real event occurs.
Plan for Resilience Improvements
- FEMA hazard mitigation funding can support long-term resilience initiatives. FEMA supports projects with outcomes that reduce future institutional risk.
FEMA as a Strategic Risk Management Tool
- Disaster recovery planning has become an essential component of institutional risk management and financial stewardship. Institutions that proactively align their risk management practices with FEMA Public Assistance eligibility requirements can effectively transfer a significant portion of catastrophic risk to the federal government.

The bottom line: Understand FEMA and its role in your recovery before the next disaster arrives.

https://www.climatecentral.org/climate-services/billion-dollar-disasters