HMGP awards are required to have at least a 25% non-federal cost share (excluding management costs). The recipient may choose to meet the cost share requirement by ensuring a minimum 25% non-federal share for the overall HMGP award rather than on an individual subaward basis. This strategy is referred to as global match.
Global match allows flexibility in which the non-federal cost share does not need to be 25% for each individual subaward. Instead, under the global match, the non-federal cost share for all the recipient’s submitted subawards combined must equal 25% for the overall disaster. Global match allows the recipient to use any cost share match that exceeds the minimum requirement (referred to as overmatch) from certain subawards to alleviate the financial burden on other activities.
Recipients choosing this option must develop a cost share strategy as part of their Administrative Plan for FEMA review and approval.
The Administrative Plan must include a cost share strategy that explains how the applicant will:
- Apply this approach fairly and impartially to all subapplicants.
- Monitor the cost share for the overall award throughout the period of performance.
- Address any cost share shortfalls that may occur during the period of performance and at closeout.
If the non-federal cost share of the award is less than 25% of the total amount at closeout, FEMA will recoup the amount of federal assistance needed to bring the cost share into compliance.
Insular areas including American Samoa, Guam, the Northern Mariana Islands and the U.S. Virgin Islands may have a portion of their cost share waived if program requirements allow.[297] For more information, please refer to Part 4.L.