Running head: THE COST OF SAVING LIVES 1

The Cost of Saving Lives: Disaster Relief Funding

Alisha L. Brown

Legal Studies Academy

First Colonial High School

THE COST OF SAVING LIVES 2

Abstract

This paper identifies issues in regards to disaster relief and analyzes the many causes and effects

of them. The impacts of disasters are explained in order to fully reciprocate the importance of

such issues and the legal effects of disasters. Funding, including federal, state, and private, are

evaluated in relation to each sectors organizational structure and responsibilities. These are

highlighted throughout two court cases, ​Graham v. Federal Emergency Management Agency and

Phelps v. Federal Emergency Management Agency ​in order to incorporate legal and judicial

reasonings to these responsibilities. These cases will show how FEMA disputes aid on a

household basis rather than a national aid. Acts pertaining to disaster relief such as the Disaster

Relief Act of 1974 explain the first major additions to disaster relief and how these are used

today for the benefit of those receiving aid. Although American disaster relief legality is the

main component of this paper, Japan’s policies and governmental organization are used as a

basis to compare as well as contrast to the American policies to again highlight the issues in

relief.
THE COST OF SAVING LIVES 3

Disaster Relief Funding: The Cost of Saving Lives

Sometimes humans must face the inevitable and take charge of situations with very little

control. Natural disasters are one of the biggest problems in our world today. When the

unexpected event occurs in any region, aid is soon to be distributed to the various victims. This

job is not only a hard one, but it requires for funding to be in place before aid can even begin to

process. Funding for natural disaster relief is a prolonged and extensive process causing for

many issues in relation to the funding of natural disasters. Emergency relief funding delays

adequate responses to disasters by complicating the funding process and the distribution of aid.

Issues of Emergency Funding

Emergency relief funding is a vital source of funding in America as well as other

countries. It is merely a matter of life and death when a country must save or rescue its own

citizens. In America a system is put in place to organize and regulate the funding of natural

disasters. Our local, state, and federal governments work simultaneously to provide a way to

distribute aid. Although this may seem like the best solution, there comes factors involved in the

system. The different levels of government provide different types of aid. It has been argued that

federal government aid bills are less effective than those of local governments creating a issue

that comes between the government's actions and what is supposed to happen.

Because natural disaster aid is deemed of high importance, many other government

programs may and have been affected as a result of emergency funding. This may cause

offsetting aid with budget cuts to other government programs and areas of funding that still may

be deemed important to what that program was created for. The government is one of the main

ways of disaster aid but is not the only one. Private organizations plays a huge role in the safe
THE COST OF SAVING LIVES 4

and rescue process of natural disaster. These organizations also have funding and donations in

order to carry out actions similar to the government. The issues become more prevalent in the

donations and spendings of these organizations. Since these are private organizations, donating

becomes a problem for most Americans because they are not able to know exactly where their

money is going. Private organizations are very different from the government funding, and they

do not have the same rules and regulations as the government which causes major holes in the

funding of private organizations.The overall issue from both sectors is the distribution of aid.

This process can be extensive, sluggish, and not successful ​(Daniel J. Weiss and Jackie

Weidman, n.d.).

Disasters

Human Impacts

Natural disasters impact humans directly in various ways and amounts, almost all being

negative. The first being food scarcity. Food scarcity is one of the most prominent and negative

impacts of natural disasters. The need for certain foods go up such as bread, crackers, cans, and

other non perishable foods. While demand is high, producers and stores hike the prices of these

items up making them unavailable to most evacuees and victims of the disaster. The high prices

of foods during this period can cause malnutrition due to the lack of food available and can

increase the risk of death as well as negative effects on a child's development early on. Crops and

agriculture foods can become easily destroyed as a result of any natural disaster causing for a

stop in production of these crops halting the availability of the food making the scarcity of food

even greater.
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Health and safety risks begin to take effect as soon as a natural disaster hits. While all

types of natural disasters affect humans in some kind of way, others impact more severely.

Floods, hurricanes, and typhoons provide the health risks of waterborne bacteria including but

not limited to typhoid fever, cholera, and hepatitis A. Vector-borne diseases such as malaria,

yellow fever and West Nile fever can be increased exponentially by floods, hurricanes, and

typhoons.​ Contamination of water is key in the causation of these many diseases. Victims do not

always have access to clean drinking water sources and is put into the hands of disaster response

agencies ("Flooding and Communicable Diseases Fact Sheet," WHO).

Financial Impacts

A study conducted by Dr. Tatyana Deryugina from the University of Illinois covers

finances related to disasters, more specifically hurricanes. The study compares the amount and

source of aid for hurricanes in America and compares this data to other cities to find correlations

with disaster aid. In finding the amount and source of aid in disasters, their findings are broken

down even smaller into disaster-related aid and non- disaster aid. This is important to the study

because it shows the difference between government aid and organizations that still have a

financial impact to the disaster. This starts off as government aid in medical, disability

insurance, social security, and medicare spending.The study found that all of these categories

went up in spending not only right after a hurricane but even years after due to the financial need

which shows the huge impact on the government. The two categories most impacted were

medical spending and medicare. The study found that many trends in the hurricane counties,

such as unemployment and population changes, as compared to counties not affected were the

same which shows the great impact for safety net programs which help those affected more than
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most think. More findings from this study include a hurricanes total cost with both disaster aid

and non disaster aid sources in the total and the breakdown of both separately to show a

difference in aid from the two sources. It was found that non disaster programs actually give

more financial support to those affected from disasters than disaster aid payments. The study

concluded that 19 billion dollars was spent on hurricane relief and 67.7 billion dollars on other

disasters between 23 years ​(Bent, 2016).

Funding from Groups

There are two main groups that receive funding and are ultimately the ones who pay for

for most of disaster relief when havoc breaks. These two groups are the government or private

organizations. Each of these groups have different regulations and procedures they must follow

regarding the money they receive and give away. Although there are many private organizations,

there are a few selected main organizations that deal with disaster relief the most such as the Red

Cross. There is another break down of these two categories in relation to the government, the

state and the federal level.

State/Local Level

Although every state has the right to have their own disaster funding and disaster relief

practices, every state is different meaning information about funding is very general. The process

for each state is still very similar in relation to obtaining the money. When a state has been hit

with a disastrous situation, the president can make a declaration, which then opens the state to

FEMA funding. Once the state is awarded the FEMA funding, the state will be assessed based on

how badly their disaster relief is needed. In most cases, the states must pay 25% to match the

grant given by FEMA. Although, if there is a major need for the money, this 25% may be waived
THE COST OF SAVING LIVES 7

and not required by the federal government. The state's funding on a regular basis may be

different state to state depending on their Disaster Emergency Fund which is appropriated by the

state government. If the state is one that normally has many disasters, such states on the coast

like Florida, the state will have more money in their Disaster Emergency Fund because it will be

needed more in the future. When these funds are simply not enough for the substantial need, a

Governor's Declaration is always an option for the state, and this can lead to many other

resources for funding. The local government will use all of its resources before calling on the

state government. If the state government also cannot provide more aid, the Governor's

Declaration is made and other state departments are called upon to help and some local and state

organizations might be called upon as well. Other last resort options states have when all of the

resources have been used without the exception of a presidential declaration is state and local

bonds. The Tax Reform Act of 1986 states that state and local bonds are exempt from taxes

from the Federal and state governments unless the state pays, “ no more than 10 percent benefit

to private parties and no more than 5 percent of the proceeds or $5 million are used for loans to

private parties.”These bonds are normally used to help rebuild in the event of destruction in a

natural disaster ("State & Local Funding Resources," 2012).

Federal Level

The Federal Level funding requires more actions through the present and also requires

the use of many Federal agencies and departments. The federal government involves FEMA

more than any other group or organization involved with disaster relief funding. The local and

state governments must act first to have the federal government to step in and produce an action.

Once the local and state governments run out of resources, the federal government is called
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upon. ​It starts by the governor calling for assistance to the president if a disaster is too big for

local governments, and then FEMA begins to make actions in the federal government. FEMA

also gives president advice on to declare disaster or emergency which can require federal aid for

both depending on severity. Outside of the president's scope, Congress can approve more money

if FEMA can't cover the extent of the disaster; this was used in Hurricanes Harvey and Irma, in

Sep.8, 2017 when Congress approved more than $15 billion to FEMA and other organizations

(Kruzel, 2017).

Other/Private Organizations

Private organizations, or foundations are not any foundation in relation or working in the

government. This is ran by directors which collects money for the use of charity and other

activities that are normally seen for the public or group benefit. This is described in the Internal

Revenue Service Code in relation to the private foundations and public charities ("What Is the

Difference between a Private Foundation and a Public Charity?," n.d.). One of the most

recognized organizations is the Red Cross, but also one of the most controversial. Private

organizations are allowed to use less of its money in terms of actual disaster relief. It is reported

that EVP of biomedical services, James Hrouda made about $621,779 in 2010, and two of his

other executive coworkers made roughly the same (Wile, 2012). The total revenue of the

company is about 2.1 billion, which allows for some to raise questions about spending habits

("American National Red Cross on the Forbes The 100 Largest U.S. Charities List," n.d.).

FEMA

FEMA is short for Federal Emergency Management Agency. FEMA is a federal agency

that aids Americans involving disaster relief such as hurricanes, tornadoes, earthquakes and
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many more. Created by President Jimmy Carter in 1979, FEMA was created for the purpose of

having a centralized agency to deal with disaster aid. Before FEMA disaster aid was very

unorganized which included about 100 agencies that would all deal with disasters which created

problems for the Federal government. FEMA is not only tasked with the job of aiding in time of

a disaster, but FEMA also helps prepare for a new disaster, today that disaster is also considered

terrorism. When disaster strikes, FEMA helps with 3 main areas: housing, medical, and property.

An example of each would be paying for home repairs and covering for the money for damage to

a home, medical bills, and debris removal which requires an application for aid. FEMA has

regional offices that work with the states closest to it them to help with aid when the time comes

("State & Local Funding Resources," 2012).

Case Law

Graham v. Federal Emergency Management Agency

Graham v. Federal Emergency Management ​is a court case that delves into FEMA

interactions and procedures with foreign entities. This case was appealed to the United States

Court of Appeals, Ninth Circuit. The plaintiffs in this case were 83 people with Chianina

Graham on behalf of them, who was the main person to sue, also being a victim. Micronesia’s

states Chuuk and Yap were hit with Typhoon Owen on November, 1990. President Bush

declared the state's major disaster areas and invoked the Stafford Act and caused FEMA to go

into effect. The president is able to use FEMA to give a state a grant for the purpose of individual

or family grants. FEMA promised to pay 75% of cost with the state paying 25%. In order for this

to happen FEMA only provides money for those the state deems eligible under such rules for
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FEMA with appeals allowed. FEMA extended this program for these states but soon found out

that Chuuk State Appeals Board was approving people without the right documentation which

was against FEMA’s rules. Therefore, FEMA denied another 90 day extensions and ended the

program with approved claims unpaid and pending applications.The plaintiffs argued that the

actions by the board were fixed. 83 people from Chuuck State wanted to sue FEMA for either

their unpaid costs due to being approved or for their pending appeal and no decision. The issue in

this case is whether these individuals can sue FEMA for withdrawing the program with unpaid

dues and pending requests. The court decided that those who were approved for the program and

did not receive their money could sue but those with pending request could not. (Graham V.

Federal Emergency Management Agency).

Phelps v. Federal Emergency Management Agency

Phelps v. Federal Emergency Management Agency ​is a court case that gives an example

of FEMA’S responsibilities as they aid those with loss to their home. M.D. and Irene Phelps

house was struck by a storm on the Wellfleet coast. The winds were considerably fast at 67 miles

per hour and ocean waves reaching the highest level in years. This caused thirty-three feet of

land near their house to collapse as well as significant damage to their house. M.D. Phelps called

Liberty Insurance and spoke to a representative who told him to contact the National Flood

Insurance Program (NFIP). The NFIP is a program established by Congress and carried out by

the FEMA director to specifically help with flood damage and aid. Once he spoke with a

representative at NFIP about damage to his home, he was told that he fully reported the loss of

his home, the investigation would begin, and there was no more action for Phelps to carry out.

Phelps asked multiple times if he needed to provide a written report or if any other reporting was
THE COST OF SAVING LIVES 11

to be done and he was told that the written report was not needed. FEMA then called for its agent

to perform the investigation of the home. John McNamara then went to the home to investigate

and concluded that the house was “uninhabitable” and reported his investigation in letter to the

NFIP. The letter included a non-waiver agreement signed by Phelps, but the proof of loss or form

for proof of loss was checked by the agent. During the investigation, Phelps was not notified by

any FEMA agents that a proof of loss form was needed. FEMA denied coverage of loss because

a “flood” was not the cause. Phelps sued FEMA and won in the district court, but the decision

was reversed in the United States Court of Appeals, First Circuit, due to Supreme Court

precedent and the absence of a waiver. (Phelps v. Federal Emergency Management Agency)

Laws

Disaster Relief Act of 1974

The Disaster Relief Act of 1974 was passed into law by Richard Nixon to allow the

president to make disaster declarations. Prior to the Disaster Relief Act of 1974,hundreds of

federal agencies dealt with disasters relief making it unorganized to provide assistance; therefore,

this act was made to make disaster relief run smoothly, and was eventually amended several

times. Programs included Housing and Community Development (Individuals and Households

Program (IHP), Public Assistance for Permanent Work Program, Hazard Mitigation Grant

Program, Pre-Disaster Mitigation program, Federal Housing Administration (FHA), and

Community Development Block Grant Disaster Recovery (CDBG-DR). This act allows the

President to carry out numerous tasks, which include but are not limited to, “​Make contributions

to state or local governments to help repair or reconstruct public facilities, Make loans to local

governments suffering a substantial loss of tax and other revenues, and Provide additional relief,
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including food coupons and commodities, relocation assistance, legal services, and crisis

counseling” ​(Wilis, 2014).

Sandy Recovery Improvement Act (SRIA) of 2013

The ​Sandy Recovery Improvement Act (SRIA) of 2013​ was signed by Barack Obama on

January 29, 2013. This act was one of the most significant changes of law in relation to FEMA

regulations and actions. This act authorized ​$60 billion for disaster relief agencies and gave more

money to certain agencies to help with Hurricane Sandy ("Sandy Recovery Improvement Act of

2013," 2015). The SRIA allows for FEMA to aid those who have been affected by disasters more

in depth in relation to cleanup and financial help as well. The main changes to the law are

divided into 4 categories: Public Assistance Program, Individual Assistance, Hazard Mitigation,

and Tribal Government. The Public Assistance Program allows for FEMA to help with debris

clean up along with state, local governments, and nonprofit organizations and to help with the

rebuilding process. The change to individual assistance allows for FEMA to enter lease

agreements with those who are victims of disasters and are in multi-family housing to lower the

repair costs. In relation to hazard mitigation, FEMA will be able to act sooner without having to

pay a substantial amount of money to start aid. Lastly are the changes to Tribal Government. The

SRIA allows for an Indian Tribe to declare an emergency front the president for FEMAs aid or

any other federal, state, or local help (Yee & Phelps, 2014).

Comparative Law

Earthquake and Tsunami of 2011

Japan has earthquakes very frequently and is not a new event for the country; therefore,

their disaster relief for earthquakes has become very organized. The most known earthquake in
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Japan was the earthquake and tsunami of 2011. The magnitude 9 earthquake actually caused the

tsunami triggering even more destruction in northeastern Japan. Over one million buildings were

destroyed, either completely, half, or partially destroyed. This disaster cost Japan 16.9 trillion

yen which equates to about 199 billion US dollars making this disaster the costliest natural

disaster in world history. Although this disaster occurred in 2011, as of February 2017, 50,000

out of 150,000 evacuees are still living in temporary homes, according to ​Japan's Reconstruction

Agency. Scientists found a clay lining in the vault in the subduction zone which is believed to

have cause the two tectonic plates to slide as far as 164 feet causing the immense shaking of the

earthquake. The death toll as of June, 2016 is 15,894 with 2,500 people currently still missing.

This disaster would potentially make the whole world realize the importance of disaster relief

(Oskin, 2017).

Japan’s Reaction

Although Japan was able to still recover in most aspects, Japan's Meteorological Agency

was looked down on for the underestimated response for the earthquake. The scientists in Japan

did not expect the size of the earthquake therefore Japan was not prepared fully for the impact.

(Oskin, 2017). Although Japan was not able to be fully prepared, they still acted fairly quickly.

Many mission teams were sent out, first to those close to the coast who could have been

impacted more. These included small villages as well as the ocean and waterways where people

were found on many objects such as pieces of roof from their homes. At these locations, the

mission teams learned that debris cleanup would also be heavily needed for the various

waterways and the ocean. There were also several teams the searched inland for survivors under

possible structures in buildings or debris that could have fell. Simultaneously, researchers and
THE COST OF SAVING LIVES 14

scientists were analyzing the cause of the Tsunami and the aftershocks. Teams soon after began

to clean up debris in major areas and major structures, such as important buildings or building

that were completely destroyed. Makeshift shelters were also made soon after for those who lost

a home and those who have been exposed to radiation from evacuation of Fukushima's nuclear

plants were taken to a facility for screening and cleansing. These actions show how the rescue

missions and efforts soon after the disaster are very similar to America's, even quicker in relation

that there are no majors decisions needed to be made such as who can help and why (Taylor,

2011).

Japan's Policies

Japan has an organizational three-tiered structured government. The national government,

prefectures, and municipalities are the three groups to make each tier. In relation to disaster

relief, each tier is responsible fully of its jurisdiction and takes on several different roles. A

Minister of State for Disaster Management shares levels with the Cabinet and Disaster

Management Bureau, which creates the many roles for each level and agency in the Japan

government in relation to emergency relief. This sets up the basic roles and responsibilities of

each leader. When disaster strikes, the Cabinet Office takes lead in the initial aid although a

Emergency Response Team, including agencies and ministries, begin discussing plans shortly

after the disaster, about 30 minutes after. The system of policies are as follows, “setting up

disaster base hospitals, operating and training DMATs (Disaster Medical Assistance Teams), and

establishing an EMIS (Emergency Medical Information System).” These are all carried out by

The Ministry of Health, Labour and Welfare (MHLW) which have set up its very own policies
THE COST OF SAVING LIVES 15

(OGATA, 2016). The MHLW Humanitarian Assistance policy in relation to natural disaster is

explained by,

“ dispatches Japan Disaster Relief team and delivers emergency relief goods. One or

combined assistance of them is offered depending on the scale of natural disasters and the

needs. As Japan has extensive knowledge on disaster reduction based on its own

experiences from domestic natural disasters, it will continue to lead international efforts

for disaster reduction. In concrete terms, the Government of Japan, in cooperation with

UNISDR, promotes further implementation of Hyogo Framework for Action and intends

to host the 3rd World Conference on Disaster Reduction in 2015.” ("Humanitarian

Assistance / Emergency Assistance," 2016).

Japan's Disaster Relief Act also provides the basic functions for the government's emergency

relief such as provision of accommodations, distribution of cooked rice and other foods, supplies

of drinking water, and Distribution of school supplies ("Earthquake and Tsunami in Japan," n.d.).

Although these policies and Acts mildly differ from America’s policies on the basis of how they

begin their relief and who starts it in their government, the basic structure and purposes correlate

greatly.

Conclusion

Emergency Relief funding is a key piece in our government today due to its impact. It

draws the line between life and death in most cases. Along with red tape and an extensive

process, disaster relief funding has the power to act American citizens when disaster strikes.

FEMA not only is tasked with the job of aid in most cases, but the inner workings of the United

States government can affect this for better or for worse. Emergency Relief funding has the
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ability to change with acts such as the SRIA, to allow the government to help more and give aid

out faster.
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