How the president is able to use FEMA funds to pay unemployment in a pandemic, A THREAD.
(Written by someone who teaches the political & legal foundations of emergency management, not just watched a single House of Cards episode five years ago.)
(Written by someone who teaches the political & legal foundations of emergency management, not just watched a single House of Cards episode five years ago.)
Basics: The Stafford Act is the cornerstone of federal emergency management policy. It gives the president the authority to declare a state of emergency & major disaster in states/territories/tribes. (This is different than a “National Emergency): disaster-ology.com/home/2020/3/26…
The Stafford Act was *intentionally* left pretty vague. On the one hand, this is good because disaster response requires flexibility on the other it is bad because it gives A LOT of power to the White House.
In early March when it became obvious there was community spread in multiple states EM folks discussed the urgent need for various types of declarations to be made. These open up federal $ for needs related to the pandemic. Covered here: disaster-ology.com/home/2020/3/26…
TL;DR it took WEEKS for but eventually every state and territory had requested and been granted a major disaster declaration under the Stafford Act.
~This is good~
The problem was that not ALL types of assistance had been granted by FEMA/ WH.
~This is good~
The problem was that not ALL types of assistance had been granted by FEMA/ WH.
There was diversity in what governors requested. Some only asked for public assistance while others also asked for individual assistance. The public assistance was approved immediately but the individual assistance was not (with the exception of crisis counseling).
For example, Washington State requested many types of individual assistance but was only approved for crisis counseling.
Look at the difference between IA on their request/ approval:
Look at the difference between IA on their request/ approval:
There are other individual assistance programs that could have been used (again, from the beginning) to help people. One of the most obvious was funeral assistance which went untapped:
Another individual assistance program and the point of this thread is the Disaster Unemployment Insurance program. (See it listed under IA on the Washington State request above?). More on the program here:
This was frustrating for those familiar with our existing disaster relief infrastructure. For better or worse we’ve spent DECADES developing federal programs to come to the aid of individuals during & after disaster.
Here we have one of the largest catastrophes in US history and the WH wasn’t using them. In retrospect, I think it will be identified as one of the key failures of the federal response.
These programs, and BILLIONS of dollars, were just sitting there while millions of Americans lost their jobs as shelter in place orders rippled across the country. The controversy is that they weren’t being used! Nearly no one in media (and Congress?) seemed to notice!!
(The justification that I continually heard from people working at FEMA was that the administration did not want to use the IA programs bc they wanted Congress to pass COVID-specific legislations. There is a deep fear within FEMA of getting in trouble for duplicating programs.)
In short, they didn’t want to use the disaster unemployment program under Stafford Act/ FEMA bc they felt it would duplicate whatever was forthcoming from Congress. This did turn out to be right btw – Congress passed the CARES Act with federally enhanced unemployment benefits.
Look, you can debate whether or not the most effective thing to do was use the existing disaster programs or go through Congress. There will be a study done about the timing and politics of it all later. I have my strong opinion but we don’t need to figure that out on Twitter.
So anyway, Congress passed the CARES act, etc. and things definitely were not at all fine BUT there was unemployment money flowing (for the most part).
Then it ran out at the start of this month and Congress couldn’t reach a new deal. cnbc.com/2020/08/06/wil…
Then it ran out at the start of this month and Congress couldn’t reach a new deal. cnbc.com/2020/08/06/wil…
That brings us to now. The president announced he is going to use the Disaster Relief Fund to pay the $400 of enhanced federal unemployment. I’ve seemed some common themes in how people are interpreting (often incorrectly) this announcement so let’s go through them.
First: This part was not an EO. It’s a memorandum authorizing the use of the Other Needs Assistance Program. FEMA paying unemployment during a disaster is not illegal if there is a declaration & it’s not duplicative.
This situation is covered under the Stafford Act/ FEMA’s existing program.
In fact, you could argue that this is the approach that should have been taken all along.
whitehouse.gov/presidential-a…
In fact, you could argue that this is the approach that should have been taken all along.
whitehouse.gov/presidential-a…
Second: This is $200 less than people have been getting which isn’t great for people who are trying to, you know, live. In the absence of Congress acting $400 is better than $0. I do not agree that that is enough money but here we are.
Third: States are responsible for coming up with a 25% match for unemployment. That could get expensive quick for states that are already running out of money.
npr.org/2020/08/03/893…
npr.org/2020/08/03/893…
This is where the evidence of political posturing & not a genuine attempt to meet people’s needs is revealed.
The WH can waive the match whenever they want. This happens.
Here's the National Governor's Association requesting this back in April: nga.org/policy-communi…
The WH can waive the match whenever they want. This happens.
Here's the National Governor's Association requesting this back in April: nga.org/policy-communi…
Fourth: States will have to request this program.
Yup, and many of them already have (remember the Washington request)! I don’t have a convenient list of every state's request from March/ April but many states requested “All Individual Assistance”...
Yup, and many of them already have (remember the Washington request)! I don’t have a convenient list of every state's request from March/ April but many states requested “All Individual Assistance”...
...which includes disaster unemployment. As far as I know they were never “denied” just left as “pending”.
For the states that didn’t include it in their initial declaration request they can just update their request. That’s not a big deal at all.
For the states that didn’t include it in their initial declaration request they can just update their request. That’s not a big deal at all.
Fifth: Where is this money coming from?
They would start using the Disaster Relief Fund to pay for unemployment. They can legally do that and again, it’s not a bad use of disaster funds. The pandemic IS A DISASTER.
Here’s some background on the fund:
They would start using the Disaster Relief Fund to pay for unemployment. They can legally do that and again, it’s not a bad use of disaster funds. The pandemic IS A DISASTER.
Here’s some background on the fund:
The pandemic has characteristics that are unlike the types of disasters we are used to experiencing in the US. Primarily because of the actual length of the response (months, probably years rather than days/ weeks) and the scope of impacts (literally the entire country).
This raises a question about whether or not our existing emergency management infrastructure, and individual disaster relief programs are adequate and appropriate in this situation.
The answer is yes and no, IMO.
The answer is yes and no, IMO.
We are in such a colossal economic mess that this is not going to be fixed by running unemployment through the Disaster Relief Fund.
It’s not sustainable.
Congress needs to create a long term solution.
It’s not sustainable.
Congress needs to create a long term solution.
A huge concern I’ve seen folks bring up is that this would drain the Disaster Relief Fund in the middle of a very active hurricane season.
The connotation is that he is stealing money from FEMA.
The connotation is that he is stealing money from FEMA.
Paying the costs of a disaster with money from FEMA, through an existing FEMA program, using the authority of the Stafford Act is not stealing?
That is quite literally with the money is for...
That is quite literally with the money is for...
Further, it’s a pretty dangerous and unjust argument to say we shouldn't help people living through a current disaster because it could impede our ability to help future disaster survivors.
You have to do both.
You have to do both.
Some things to consider:
A. It depends on exactly how much they’re spending. They said $44 billion in the memorandum. I’m not sure where that came from but I did some very back of the envelope math and here's my guess:
A. It depends on exactly how much they’re spending. They said $44 billion in the memorandum. I’m not sure where that came from but I did some very back of the envelope math and here's my guess:
Vox says 32 million people are using the federal program. At $300 each you’re looking at around $10 billion a month. If they’re going for $40 billion that would cover 4 months (through the end of November, she says without implying anything at all.)
In the memorandum they say they will leave at least $25 billion in the DRF.
That doesn’t sound like much but remember that the Disaster Relief Fund is only one source of federal aid post-disaster and it takes months (years, decades!) for FEMA to actually spend the big bucks.
Seriously, please read about the Fund here: crsreports.congress.gov/product/pdf/R/…
Seriously, please read about the Fund here: crsreports.congress.gov/product/pdf/R/…
For all but the most extreme scenarios, $25 billion should cover us. But, hey, it’s 2020 and extreme scenarios seems to be the vibe so what would happen if that wasn’t enough?
After all, it is hurricane and wildfire season. There could be an earthquake at any moment. How about a tsunami! A blackout! Hoover Dam collapses! Idk y’all this year is a nightmare.
Well, Congress would need to pass a new bill that gives them more money. They do this all the time.
You can imagine scenarios (San Andreas) where they do this no questions but you can also imagine scenarios where there is a longer fight (NOLA flooding again or anything in PR).
If this Congress can’t agree on COVID relief would they agree on earthquake or hurricane relief?
If this Congress can’t agree on COVID relief would they agree on earthquake or hurricane relief?
This seems like one of those situations where what the administration says they’re doing and what they actually end up doing are miles apart.
**Congress needs to act. We need actual testing and mask mandates and all other kinds of things to manage the pandemic effectively.**
**Congress needs to act. We need actual testing and mask mandates and all other kinds of things to manage the pandemic effectively.**
(Y’all might want to take a look at this other type of assistance under the “Other Needs Assistance Program” as you get your COVID hospital bills but that’s none of my business.)
Finally, please remember that watching one episode of House of Cards does not make you an emergency management expert.
Emergency management is an actual profession and discipline of study with experts that you can consult.
disaster-ology.com/home/2015/3/1/…
Emergency management is an actual profession and discipline of study with experts that you can consult.
disaster-ology.com/home/2015/3/1/…
An update: I'm trying to piece together what the President is doing from these random, incoherent comments he makes off-hand so, you know. This looks like a possible reference to waiving the state cost-share that I mentioned earlier in the thread.
apnews.com/b4f436e56429f9…
apnews.com/b4f436e56429f9…
(I also did some math wrong earlier in this thread (I'm not a mathematician) but I just re-did it and if every state participated in this option (at $400) then they'd hit their cap of the DRF in about 3 weeks. So, again, not a sustainable solution.)
