Guidelines for the Disaster Financial Assistance Arrangements - Interpretation Bulletin 5: Funding formula adjustment and extension of the Terms and Conditions

ISSUE

Disaster Financial Assistance Arrangements (DFAA) Guidelines References

To ensure that the DFAA continues to be sustainable, effective February 1, 2015, the funding formula will be adjusted, as well as on an annual basis for inflation.

The formula 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.

Formula effective January 1, 2019

Effective January 1, 2019, under the adjusted formula, the rate of federal assistance to provincial and territorial governments increases as the amount of expenditures increase, rising from 50% of costs over the initial $3.19 per capita up to 90% for costs exceeding $15.97 per capita.

Table 5 - Cost-sharing formula for January 1, 2019 to December 31, 2019

Eligible provincial expense thresholds (per capita of population)

Government of Canada share (percentage)

First $3.19

0

Next $6.39

50

Next $6.39

75

Remainder

90

How was the Consumer Price Index used to calculate the DFAA annual inflation adjustment?

Please refer to Interpretation Bulletin 5 (Archive) for all events up to December 31, 2018 under the current Guidelines.

Extended Terms and Conditions

The current Terms and Conditions expire on January 1, 2020.

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