Economic Justification: Overview

Economic Justification for Betterment Funding

Betterments (are eligible) only where clearly economically justified to prevent future recurring damage. Economic justification must weigh the cost of betterment against the risk of eligible recurring damage and the cost of future repair (23 CFR 668.109 (b)(6)).

If the owner of the facility that has been damaged by a natural disaster or catastrophic failure thinks that added features—beyond in-kind repairs—will help reduce overall ER Program costs throughout the life of the repair, they can apply for Betterment funding.  As part of the application, an economic justification must be provided.

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