What Happens to 'Leftover' Grant Money?

What happens to leftover money in the FEMA/USFA FIRE Act Grant program?

The case of Saraland, Alabama which was awarded a grant in excess of $100,000, and is now debating whether they will keep it or give it back, brings up that question. Many departments feel they have legitimate needs and would love to catch what others toss back.

Brian Cowan, FEMA Director of Grant Programs, said they have a process for dealing with such incidents.

If the money is not used by the end of the fiscal year, it goes back to the U.S. Treasury. If time remains in the fiscal year and money becomes available again, it will be used in the current grant program.

The grant program that just finished in January actually involved funds appropriated for both FY2002 and FY2003. As of September 30,2002, the FY2002 money had to be out the door. If it comes back, it is returned to the Treasury.

FEMA knows which grants were funded with FY2002 money and which with FY2003 money. If a grant such as Saraland

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