Disaster assistance from FEMA is intended to help residents pay for necessities lost due to the Aug. 24-26, 2023, severe storms, tornadoes and flooding. A letter explaining what the payment is to be used for arrives within a day or two of the check or direct deposit payment.
As you start to receive funds for rental assistance, home repairs and more, you can rest assured federal disaster assistance funds are tax-free. FEMA’s notification letter will inform you of the proper uses for the disaster assistance funds. FEMA urges you to use the funds as stated in your award letter and be sure to only use them for disaster-related expenses.
FEMA will send you a notification letter informing you of the types and amount of assistance you are eligible to receive. These may include:
Home repairs (e.g., structure, water, septic and sewage systems);
Rental assistance for a different place to live temporarily;
Repair or replacement of a disaster-damaged primary vehicle;
Uninsured out-of-pocket medical expenses for an injury caused by the disaster;
Repair or replacement of occupational specialized tools;
Essential educational materials (e.g., computers, schoolbooks, supplies);
Moving and storage expenses related to the disaster; or
Other disaster-related expenses.
If you spend the grant on anything other than the purpose for which it is intended, you may not be eligible for future disaster assistance. In some cases, FEMA may ask that the money be returned.
It’s very important to keep receipts for your disaster spending for three years. This is to make sure you document that the money was used to meet disaster-related needs. If you receive an insurance settlement to cover the same expenses, you must reimburse FEMA. Audits are conducted to confirm funds were spent properly.
For information about the disaster recovery operation in Michigan, visit www.fema.gov/disaster/4757.