Government of Canada modernizes disaster recovery funding program

OTTAWA, ON, Jan. 29, 2025 /CNW/ - In recent years, Canadians have witnessed the rising frequency and severity of extreme weather events, like floods and wildland fires, destroy homes, businesses, and critical infrastructure, which leave lasting impacts on communities right across the country. As such, it is crucial to take action to reduce the impacts of these disasters, support Canadian communities in adapting to climate change, and provide timely and effective assistance for those affected as they recover and rebuild.

Today, the Honourable Harjit S. Sajjan, President of the King's Privy Council for Canada and Minister of Emergency Preparedness and Minister responsible for the Pacific Economic Development Agency of Canada, was at the Canadian Red Cross' (CRC) Ready 2025 conference to announce additional details on the upcoming modernization of the Disaster Financial Assistance Arrangements (DFAA) program, which is anticipated to come into effect on April 1, 2025.

The modernized DFAA program ensures that when disasters impact Canadians and all levels of government, financial assistance to provinces and territories will be delivered quickly and efficiently in the aftermath of a disaster, and also provide:

• Increased investments in strategic disaster mitigation and building back better to minimize disaster impacts on communities and the risk of future disasters;
• Incentives for risk reduction, pre-disaster planning, and improved hazard awareness to reduce the risks and impacts of disasters; and
• Expanded support for people hardest hit by the impacts of significant disasters.

Today's announcement marks the on-time completion of a key target of Canada's National Adaptation Strategy, completing by 2025 the modernization of the DFAA program to reduce the risk of climate-related disasters and improve disaster recovery outcomes. The Strategy lays out a framework to reduce the risk of climate-related disasters, improve health outcomes, protect nature and biodiversity, build and maintain resilient infrastructure and support a strong economy and workers.

The DFAA was reviewed and modernized in close collaboration with provinces and territories, and was guided by significant inputs from Canadian and international experts, including by the findings presented in the DFAA advisory panel's final report Building Forward Together: Toward a more resilient Canada.

The Government of Canada will continue to work closely with provincial and territorial governments as they transition to the updated program, and is committed to supporting Canadians whose lives are impacted when disasters strike, helping communities recover, and, ultimately, increasing our resiliency.

Quote

"With the DFAA program, the federal government has been there to help communities recover from disasters. But as climate change leads to more frequent and severe weather events, we need to do more to keep people safe, reduce risks, and costs to Canadians. That's why today's changes to the DFAA are so important. These changes will ensure increased, timely, and flexible federal funding is available to support provincial and territorial partners to build back better in the aftermath of disasters and plan ahead for future disasters– together we can rebuild stronger and safer communities." 

- The Honourable Harjit S. Sajjan, President of the King's Privy Council for Canada and Minister of Emergency Preparedness and Minister responsible for the Pacific Economic Development Agency of Canada

Quick Facts

• When a large-scale natural hazard disaster happens, the Government of Canada provides financial assistance to provinces and territories through the DFAA program. Through this support the Government of Canada covers eligible disaster response and recovery expenses from provinces or territories and that exceed what they could reasonably be expected to bear on their own.
• The DFAA does not provide funding directly to Canadians impacted by disasters; this assistance is delivered by provinces and territories. The federal program helps provinces and territories cover the costs associated with disaster recovery.
• The DFAA Guidelines for the modernized program are now posted, along with the DFAA Guidelines for eligible disasters occurring before April 1, 2025 (the former program). Since it can take a number of years after a disaster for final payments under the DFAA to be processed, the former program Guidelines will remain active until those events are fully closed and finalized. The DFAA Guidelines for the modernized program will be finalized when they come into effect on April 1, 2025.
• This new approach provides a net increase in federal funding available to provinces and territories (PTs), and substantially increase investments in building back better, risk reduction, and strategic mitigation while maintaining and expanding support to vulnerable populations. It provides greater flexibility for PTs to deliver regionally and culturally appropriate response and recovery support to their communities.
• Under the modernized DFAA, for eligible disasters occurring on or after April 1, 2025, the DFAA cost shares provincial or territorial expenses related to:
  • Disaster response;
  • Uninsurable losses for homes and small businesses;
  • Repairs and restoration of damaged infrastructure to more resilient levels;
  • Supports for people experiencing significant disaster impacts; and
  • Strategic mitigation designed to reduce risk to disaster-affected communities.
• The updated program also includes a Disaster Risk Reduction Incentive, which aims to recognize the importance of pre-disaster investments that reduce disaster response and recovery costs and lessen the impacts of disasters on people, businesses, and communities. Provinces and territories that undertake high-impact activities to reduce disaster risk in advance of a disaster may be eligible for a financial incentive through the modernized DFAA.
• Since the inception of the program in 1970, the DFAA has been a reliable source of support for provinces and territories. As of January 2025, the Government of Canada has contributed over $9 billion in post disaster assistance to help provinces and territories with the costs of response and returning infrastructure and property to pre-disaster condition.

Associated Links

• DFAA beginning April 1, 2025
• Modernizing the DFAA

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SOURCE Public Safety and Emergency Preparedness Canada

Contacts: Joanna Kanga, Press Secretary, Office of the President of the King's Privy Council for Canada and Minister of Emergency Preparedness and Minister responsible for the Pacific Economic Development Agency of Canada, [email protected]; Media Relations, Public Safety Canada, 613-991-0657, [email protected]