FEMA categorizes projects as large or small based on the final approved amount of eligible costs after any cost adjustments, including insurance reductions:

• A Small Project is a Project with a cost below the threshold
• A Large Project is a Project with a cost equal to or greater than the threshold

The threshold applies to incidents declared within that fiscal year. FEMA administers funding for Large and Small projects differently.

For Large Projects that are not capped projects, FEMA adjusts any estimated costs to the actual incurred amount so that the final approved funding is based on actual costs.

For Small Projects, FEMA does not adjust estimated costs to the actual incurred amount.