New EPA and FEMA MOU on Infrastructure Recovery after Disasters

EPA and FEMA have announced a Memorandum of Understanding (MOU) that enhances coordination between FEMA and EPA programs using the SRF. This funding will now be more quickly accessible following disasters, allowing communities impacted to rebuild water services. Iowa Governor Kim Reynolds welcomed the MOU, adding that following severe flooding, Iowa will be able to access critical funds to restore vital drinking and wastewater infrastructure.


The MOU intends to do the following:

  • Tribes and local government are encouraged to access low-interest or no-interest loans from the SRF to help restore drinking and wastewater infrastructure.
  • Allows for loan repayments, state match, and interest earnings that are state funds to be reimbursed by FEMA.
  • SRFs can act as cost-sharing financing sources for a municipality applying for FEMA disaster assistance grant funding.
  • Encourages Clean Water and Drinking Water SRF programs to provide non-federal funds for the purposes of FEMA Cost Share or Interim Loans.

Following a disaster, communities typically pay their own money for disaster support and clean-up and then wait for reimbursement. However, this MOU allows communities to avoid spending their own funds by securing a loan early. Click here for the full announcement.