Mitigation measures must be cost-effective to be eligible for Public Assistance grant funding under Section 406 of the Robert T. Stafford Act.

FEMA considers mitigation measures to be cost-effective if any of the following criteria are met:

• The cost for the mitigation measure does not exceed 15 percent of the total eligible repair cost (prior to any insurance reductions) of the facility or facilities for which the mitigation measure applies
• The mitigation measure is specifically listed in Appendix J: Cost-Effective Hazard Mitigation Measures of the Public Assistance Program and Policy Guide, and the cost of the mitigation measure does not exceed 100 percent of the eligible repair cost (prior to insurance reductions of the facility or facilities for which the mitigation measure applies)
• The Applicant demonstrates through an acceptable benefit-cost analysis methodology that the measure is cost-effective
• FEMA's software provides appropriate benefit-cost analysis methodologies