An applicant may not receive funding from two sources for the same item of work. This is called a Duplication of Benefits. If an applicant can obtain assistance for a project from another Federal agency, then FEMA cannot provide funds for that project (see Other Federal Agencies).
Grants and cash donations received from non-Federal sources designated for the same purpose as public assistance funds are generally considered a duplication of benefits. However, these funds may be applied towards the non-Federal cost share. Grants and cash donations that are received for unspecified purposes or ineligible work do not constitute a duplication of benefits.
A duplication of benefits most commonly occurs with insurance settlements. If a damaged facility is insured, FEMA is required to reduce the amount of the grant by any insurance proceeds that the applicant anticipates or receives for the insured facility, even if the applicant has not completed negotiations with the insurer. The applicant is required to provide information concerning insurance recoveries to FEMA, including copies of all applicable policies. FEMA will review the insurance information and determine whether the settlement appears proper in terms of the provisions of the policy (see Insurance). The retention of duplicated funds is illegal and duplicated funds must be returned to FEMA.