As part of the Inflation Reduction Act (IRA; P.L. 117-169)—enacted August 16, 2022—Congress authorized the Federal Emergency Management Agency (FEMA) to provide disaster relief and mitigation funding through fiscal year (FY) 2026 under certain programs for:
- Costs associated with using low-carbon materials for projects
- Incentives that encourage low-carbon and net-zero energy projects
FEMA issued a memorandum to implement the first provision in March 2023. A second memorandum was published in January 2024 to implement the second, more significant provision. This Issue Brief summarizes both announcements, focusing primarily on the new incentives to encourage net-zero energy projects.