OEM Says Federal Cancellation of Grant Program Impedes Oregon's Ability to Prepare for Disasters   

SALEM, OR – The Oregon Department of Emergency Management (OEM) outlined the impact the April 4 announcement from FEMA canceling the fiscal year 2024 Building Resilient Infrastructure and Communities (BRIC) grant program has on Oregon. The cancellation, detailed in a memo from Acting Federal Emergency Management Agency (FEMA) Administrator Cameron Hamilton, outlines a review of BRIC programs from fiscal years 2020 through 2023 for programs communities depend on across the state.

In addition, FEMA issued an updated advisory on April 16 further clarifying that: "as the program is concluding, the Fiscal Year 2024 BRIC funding opportunity is cancelled, no applications submitted will be reviewed and no funds will be awarded. In addition, for all BRIC applications from Fiscal Years 2020-2023, if grant funds have not been distributed to states, tribes, territories and local communities, funds will be returned either to the Disaster Relief Fund or the U.S. Treasury.”

The BRIC grant program gives money to help communities prepare for natural disasters before they happen. For example, BRIC funds can be used to build better levees to help prevent the kind of flooding we’ve seen recently in Harney County. BRIC helps build safer roads, buildings, and other important things to keep people and property safe during a disaster. Currently, the Flood Mitigation Assistance (FMA) program is unaffected in Oregon.

What this means:

• Projects that were selected but not yet awarded won’t receive funding.
• Ongoing projects may be delayed or stopped short of construction.
• Money set aside for managing these efforts could be pulled back.
• Without extensions or continued support, communities across Oregon will face delays or cancellations in vital infrastructure improvements designed to reduce risk and protect lives.

FEMA is conducting a full review of active and obligated BRIC projects before further work to help Oregonians prepare for disasters in the future can continue.

“These decisions will significantly impact communities across Oregon working to reduce disaster risk and invest in safer, more resilient infrastructure,” said OEM Director Erin McMahon. “We are actively working with federal and state legislators to communicate these financial impacts and with FEMA partners to gain clarity on next steps and timelines. I have directed my team to conduct our own review to see what projects may fit within other Hazard Mitigation Assistance grants through federal partners that are currently funded like the Flood Mitigation Assistance (FMA) grant or other state grant programs.”

The Impact on Oregon:

• Federal share of BRIC projects: $140 million
• Local matching share of BRIC projects: $90 million
• Total local sunk costs: 8 of the 26 projects have a combined total of $8 million in sunk costs (details below).
• Impact on submitted budgets: Due to funding delays and their effect on project timelines, even if the grants were reinstated, some projects will be priced out as they locked cost estimates years ago when inflation and tariffs were lower, but those locked in prices are set to expire and the new cost could be significantly higher.

During remarks yesterday to the media, Governor Kotek referenced cuts to the BRIC grants: “These are bipartisan or nonpartisan community projects that everybody supports. I have not heard one rationale from the Trump Administration as to why they cancelled the BRIC grants.” She was speaking specifically about a project in Mapleton that received grant funding to assist with necessary upgrades to the town’s water infrastructure. You can view the full remarks at around the 25-minute mark here.

To stay informed, OEM encourages interested parties to sign up for alerts when updates are posted on the federal action webpage: https://www.oregon.gov/oem/Pages/Federal-Changes.aspx

Details about the 8 projects with sunk costs:

City of Port Orford

Utility and Infrastructure Protection Project. This project aims to address vulnerabilities in the City of Port Orford’s drinking water supply infrastructure caused by earthquakes, drought, and wildfire. It includes the installation of water meters, as well as the design, replacement, and retrofit of strategic sections of the water distribution system. The grant would ensure that the city has sufficient water to meet average daily demand while maintaining adequate emergency storage to withstand and respond to natural hazards. The project would impact a population of 1,146 residents.

• Federal Share: $6,566,537
• Local Share: $691,214
• Sunk cost: $273,350

Medford Water Commission

Utility and Infrastructure Protection Project. This project will conduct critical infrastructure improvements at four system locations as part of the Rogue Valley Water Supply Resiliency Program (RVWSRP). The goal is to enhance the resilience of the water system against seismic events, wildfires, and droughts caused by extreme weather conditions.

• Federal Share: $34,806,505
• Local Share: $14,516,834
• Sunk cost $1,875,370

City of Grants Pass

Water Treatment Plant Relocation Project. This project aims to relocate the Water Treatment Plant outside the Special Flood Hazard Area (SFHA) to prevent system failure during a flooding event. The City of Grants Pass has made substantial investments in the comprehensive design of the project, contributing over 50% of the required cost match. The loss of federal grant funds jeopardizes the broader system project scope, which exceeds twice the federal contribution. To date, the city has invested over $5 million in pre-award technical engineering and design, in addition to sunk costs incurred during the subapplication process.

• Federal Share: $50,000,000
• Local Share: $60,800,302
• Sunk cost: $5,000,000

Clatsop County Government / City of Astoria Columbie Memorial Hospital

Tsunami Vertical Evacuation Refuge Structure (TVERS) Project. This project integrates a Tsunami Vertical Evacuation Refuge Structure (TVERS) into the Columbia Memorial Hospital expansion, creating a multi-purpose facility designed to shelter the impacted population at an elevated level above tsunami inundation zones.

• Federal Share: $13,897,122
• Local Share: $5,955,909
• Sunk cost $817,846

Oregon Department of Land Conservation & Development

Natural Hazard Mitigation Plan. Updates to the Natural Hazard Mitigation Plans (NHMP) for the Burns Paiute Tribe, as well as Columbia and Umatilla Counties, aim to enhance emergency preparedness, response, and recovery efforts while mitigating the future impacts of natural disasters.

• Federal Share: $488,653
• Local Share: $152,704
• Sunk cost $8,347

Oregon Military Department - Office of Emergency Management (pre-OEM)
FY2021 Grant Management Costs

• Federal Share: $488,257
• Sunk cost from the State of Oregon’s General Fund: $39,500

Oregon Military Department - Office of Emergency Management (pre-OEM)
FY 2022 Grant Management Costs

• Federal Share: $19,695,731
• Sunk cost from the State of Oregon’s General Fund: $73,141

Oregon Military Department - Office of Emergency Management (pre-OEM)
FY 2023 Grant Partnership Costs

• Federal Share: $1,261,848
  Sunk cost from the State of Oregon’s General Fund: $79,029