The Relationship Between Flood Mitigation Assistance Grants and Economic Resilience at the County Level

Abstract

The Federal Emergency Management Agency provides Flood Mitigation Assistance (FMA) grants to state and local governments to reduce flood-related damages and loss of life. Existing research supports claims of the effectiveness of these projects, but there is little research on the impact of mitigation efforts on the long-term economic resilience of affected areas. Using county unemployment rates as a proxy for the economic health of a county, I examine the relationship between FMA grants and the change in county unemployment rates after a flood. I find no correlation between mitigation projects and the unemployment rate in the year immediately after a flood, but I do find a negative correlation between the number of projects approved and the unemployment rate five years after a flood.