AHA Requests Additional Funding for the Federal Emergency Management Agency’s Disaster Relief Fund

  September 4, 2024

Dear Chairman Cole, Ranking Member DeLauro, Chair Murray and Ranking Member
Collins:

On behalf of our nearly 5,000 member hospitals, health systems and other health care
organizations, our clinician partners — including more than 270,000 affiliated
physicians, 2 million nurses and other caregivers — and the 43,000 health care leaders
who belong to our professional membership groups, the American Hospital Association
(AHA) is writing to request additional funding for the Federal Emergency Management
Agency’s (FEMA) Disaster Relief Fund (DRF), which provides support for authorized
federal disaster activities. At a time when hospitals are facing numerous financial
challenges, DRF contributions are vital to hospitals in serving their communities.

As you know, this year there have been storms and wildfires for which the president of
the United States issued disaster declarations. FEMA is obligated to aid with these
emergencies and those prior disasters for which applications are still outstanding, such
as the COVID-19 pandemic.

FEMA on Aug. 7 declared the DRF is projected to no longer meet funding needs for all
activities under the Stafford Act, leaving the agency to prioritize only those projects that
are deemed “immediate needs funding” (INF). According to agency, “When the DRF is
projected to be insufficient to meet all Stafford Act requirements, FEMA must prioritize
lifesaving and life-sustaining activities. Under INF, FEMA prioritizes response and urgent recovery efforts without interruption. However, new obligations not necessary for
lifesaving and life-sustaining activities will be paused.”

While we understand the requirement in the short-term to prioritize funding for more
pressing life-sustaining needs, hospitals across the country have tens of billions of
dollars in outstanding applications with FEMA which can no longer be obligated and
paid. Some of these are investments made during an unprecedented public health
emergency, in which our hospitals and health systems were essential to treating and
protecting their communities. The outlays included purchasing additional personal
protective and other equipment, hiring staff and making alternations to facilities. We ask
Congress to continue to ensure the DRF is fully funded to sustain hospitals and health
systems in providing care to their communities.

Thank you for your attention to this important issue. We look forward to working with
you to advance additional funding for the DRF.

Sincerely,
/s/
Stacey Hughes
Executive Vice President