Report

Projecting the Cost of the Disaster Financial Assistance Arrangements Program

Oct 23, 2025

This report projects the cost of the Disaster Financial Assistance Arrangements (DFAA) program over 2025 to 2034 and provides a breakdown of costs across major disaster types including floods, wildfires, and storms.

Highlights

The Disaster Financial Assistance Arrangements (DFAA) program provides financial assistance to provincial and territorial governments following disasters caused by natural hazards. The program has provided more than $14 billion in support since its inception in 1970.
Federal costs under the program have increased rapidly. PBO projects that costs will increase further from $881 million per year, on average, over 2010 to 2024 to $1.8 billion per year, on average, over 2025 to 2034. Floods are projected to be the costliest type of disaster, with DFAA support averaging $1.2 billion per year over 2025 to 2034.
Earlier this year the Government announced that the DFAA program would be updated effective April 1, 2025. The updated DFAA program is expected to increase federal assistance by 3 to 4 per cent relative to support projected under the previous structure. This incremental cost is reflected in our projection.