Federal agencies have allocated new resources to support modular housing in disaster recovery efforts, prompting states to pilot expedited permitting reforms designed to accelerate deployment of prefabricated units in high-risk areas. The Federal Emergency Management Agency (FEMA) has reopened its previously paused Building Resilient Infrastructure and Communities (BRIC) grant cycle, making approximately $1 billion available for resilience-focused hazard mitigation projects, including those featuring modular or factory-built housing solutions. This development follows a federal judge's December order restoring the BRIC program, after a previous cancellation delayed prior-year funding.1FEMA will resume major grant program after yearlong hiatus, following a court order
Background
The BRIC program offers both competitive and non-competitive grants to states and tribes for proactive infrastructure projects intended to reduce vulnerability to natural disasters. Its temporary suspension in April last year put approximately $3.6 billion in mitigation investments on hold. A December 2025 court order required FEMA to resume processing these awards, which the agency began in March 2026.2Federal judge orders FEMA to restore billions in canceled disaster mitigation funding
In March 2025, FEMA issued a Request for Information (RFI) seeking input from modular manufacturers on their capabilities and plans for future disaster-relief housing deployments. Industry representatives have highlighted rapid deployment, citing delivery of the first 15 homes within two weeks following wildfires as an example.3FEMA Issues RFI for use of Modular Housing for Disaster Relief - Modular Building Institute
At the state level, regulatory reforms are underway to better align with modular construction methods. Vermont introduced a 2026 bill designating $6 million for an Off-Site Construction Accelerator pilot, which supports bulk procurement of modular units, the use of pre-approved designs, and streamlined permitting processes.4BILL AS INTRODUCED
Details
With the BRIC program reopened, state and local governments can now apply for hazard mitigation grants that include modular housing components, improving resilience to floods, wildfires, and other hazards.1FEMA will resume major grant program after yearlong hiatus, following a court order
FEMA's RFI emphasizes industry readiness: modular construction firms have the capacity to scale operations rapidly due to pre-deployment design and production. According to the Modular Building Institute, the sector's speed is a significant asset in resilience planning.3FEMA Issues RFI for use of Modular Housing for Disaster Relief - Modular Building Institute
Vermont's pilot focuses on regulatory innovation, proposing pre-approved modular designs to reduce approval times, bulk purchasing to decrease costs, and aligned state-local permitting to avoid duplication.4BILL AS INTRODUCED
Outlook
With BRIC funding reinstated and legislative support growing for modular construction frameworks, states at risk of natural hazards may begin piloting faster deployment systems. Further actions include integrating modular housing into BRIC grant submissions and monitoring whether similar regulatory accelerators are adopted elsewhere.
