"Since 1970 the President's Disaster Relief Fund has provided over $3.8 billion to individuals and State and local governments. The Federal Emergency Management Agency, in assessing eligibility for disaster assistance, has had difficulty in determining whether State and local governments are capable of handling their own disasters and whether they are committing a reasonable amount of their available funds for disaster relief. GAO [General Accounting Office] also found that the Agency has adopted a controversial costsharing policy and has funded other than natural disasters. GAO recommends that the Congress clarify the extent of supplemental Federal assistance to be given and (2) what kinds of disasters are eligible for Federal assistance. The Federal Emergency Management Agency should analyze the impact potential State inequities have on Federal disaster assistance and submit a detailed plan and legislative changes to the Congress to correct such weaknesses."
General Accounting Office, CED-82-4
Government Printing Office: http://www.gpo.gov/fdsys/