Disaster Financial Assistance Arrangements (DFAA)
In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements (DFAA), administered by Public Safety Canada (PS).
- DFAA Program Review
- Roles and Responsibilities
In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the DFAA, administered by PS. When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provide the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.
Through the DFAA, assistance is paid to the province or territory – not directly to affected individuals, small businesses or communities. A request for reimbursement under the DFAA is processed immediately following receipt of the required documentation of provincial/territorial expenditures and a review by federal auditors.
Since the inception of the program in 1970, the Government of Canada has contributed more than $6 billion in post-disaster assistance to help provinces and territories with the costs of response and of returning infrastructure and personal property to pre-disaster condition.
DFAA Program Review
Disasters are growing in frequency and severity in Canada. Public Safety Canada is reviewing its program for post-disaster financial assistance to ensure there is an updated, comprehensive system available to provinces and territories for disaster recovery and to support the safety and well-being of Canadians.
The Honourable Bill Blair, President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness, has appointed an advisory panel to review and make recommendations to update the DFAA.
On behalf of the President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness, the advisory panel on the DFAA will review Canada’s approach to post-disaster recovery and financing.
The advisory panel represents a diverse interdisciplinary group that:
- is aware of natural disasters in Canada and how they affect Canadians of diverse backgrounds, including Indigenous communities,
- has expertise in disaster financing or the economic and social impacts of disasters,
- has knowledge of disaster financing in a multijurisdictional context, and
- is committed to building community resilience capacity.
Meet the advisory panel for the Disaster Financial Assistance Arrangements program review.
The advisory panel will meet virtually until September 2022 and submit its findings to the Minister in fall 2022. Its findings will inform the program’s policy review.
Roles and Responsibilities
The provincial or territorial governments design, develop and deliver disaster financial assistance, deciding the amounts and types of assistance that will be provided to those that have experienced losses. The DFAA place no restrictions on provincial or territorial governments in this regard - they are free to put in place the disaster financial assistance appropriate to the particular disaster and the circumstances, and the DFAA set out what costs will be eligible for cost-sharing with the federal government.
PS works closely with the province or territory to review provincial/territorial requests for reimbursement of eligible response and recovery costs.
A province or territory may request Government of Canada disaster financial assistance when eligible expenditures exceed an established initial threshold (based on provincial or territorial population). For more information, please consult Appendix A.
Eligible expenses include, but are not limited to, evacuation operations, restoring public works and infrastructure to their pre-disaster condition, as well as replacing or repairing basic, essential personal property of individuals, small businesses and farmsteads. For further information on eligible expenses, please consult Appendix B.
The Government of Canada may provide advance and interim payments to provincial and territorial governments as funds are expended under the provincial/territorial disaster assistance program. All provincial or territorial requests for DFAA cost-sharing are subject to federal audit to ensure that cost-sharing is provided according to the DFAA Guidelines.
Cost-Sharing Formula effective January 1, 2022
Effective January 1, 2022, the initial threshold for all new events is defined as $3.38 per capita of the provincial population (as estimated by Statistics Canada to exist on July 1st in the calendar year of the disaster). Once the threshold is exceeded, the federal share of eligible expenses is determined by the formula in Table 9.
|Eligible provincial expenses
(per capita of population)
|Government of Canada share
The formulas will be indexed to inflation annually based on the consumer price index published by Statistics Canada. For consistency purposes, national-level data will be used to calculate inflation.
The revised formula, adjusted for inflation, will take effect on January 1 of every subsequent year, starting in 2016. The DFAA Guidelines will be updated annually during the month of February to reflect the revised formula.
Please refer to Interpretation Bulletin 5 for more information regarding the changes to the cost-sharing formula.
|Province/Territory||Q4 2021*||Threshold for DFAA|
|Newfoundland and Labrador||521,758||$1,763,542|
|Prince Edward Island||165,936||$560,864|
*Population estimates will be revised quarterly as new data is made available by Statistics Canada.
Example: For a disaster in a province with a population of 1 million where the total eligible expenses for responding to and recovering from a disaster are $20 million, the table below shows how eligible expenditures would be cost-shared through the DFAA.
|Eligible Expenses||Provincial or Territorial Government||Government of Canada|
|First $3.38 per capita (100% provincial/territorial)||$3,380,000||Nil|
|Next $6.78 per capita (50%)||$3,390,000||$3,390,000|
|Next $6.78 per capita (75%)||$1,695,000||$5,085,000|
Examples of provincial/territorial expenses that may be eligible for cost-sharing under the DFAA:
- Evacuation, transportation, emergency food, shelter and clothing;
- Emergency provision of essential community services;
- Security measures including the removal of valuable assets and hazardous materials from a threatened area;
- Repairs to public buildings and related equipment;
- Repairs to public infrastructure such as roads and bridges;
- Removal of damaged structures constituting a threat to public safety;
- Restoration, replacement or repairs to an individual's dwelling (principal residence only);
- Restoration, replacement or repairs to essential personal furnishings, appliances and clothing;
- Restoration of small businesses and farmsteads including buildings and equipment; and
- Costs of damage inspection, appraisal and clean up.
Examples of expenses that would NOT be eligible for cost-sharing:
- Repairs to a non-primary dwelling (e.g. cottage or ski chalet);
- Repairs that are eligible for reimbursement through insurance;
- Costs that are covered in whole or in part by another government program (e.g. production/crop insurance);
- Normal operating expenses of a government department or agency;
- Assistance to large businesses and crown corporations;
- Loss of income and economic recovery; and
- Forest firefighting, except where they pose a threat to built-up areas.
Disaster Financial Assistance Arrangements (DFAA) News Releases
March 22, 2022
July 11, 2021
July 4, 2021
Emergency Management Publications and Reports
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