Federal disaster cost share for U.S. Virgin Islands recovery projects reduced after hurricanes

Gov. Albert Bryan Jr. said on February 9, 2024, that the federal cost share for FEMA-funded recovery projects tied to Hurricanes Irma and Maria had been increased, reducing the U.S. Virgin Islands' local share of eligible disaster costs.

According to Government House, the change lowered the Territory's share to 5% for permanent work projects, with the federal government covering 95% of eligible costs. For projects funded under Section 428, the local share was reduced to 2%, with a 98% federal share.

Government House said the Territory had faced a 10% local cost share on FEMA disaster recovery grants, which it estimated could have amounted to $1.5 billion to $2 billion based on projected recovery costs of $15 billion to $20 billion.

Bryan said the revised cost share would represent about $1.1 billion in savings and help the Territory complete more than 1,500 projects. Office of Disaster Recovery Director Adrienne L. Williams-Octalien also said the change came with an additional 11 years to complete the work.

Government House said larger Section 428 projects include the rebuilding of schools, hospitals and other critical facilities.

Official source: https://www.vi.gov/gov-bryan-predicts-increase-in-federal-cost-share-rate-will-boost-usvi-recovery/