While the federal government provides significant financial assistance after major disasters, state and local governments play the lead role in disaster recovery. Experiences from past disasters can provide states and local communities with potential good practices to consider. These practices are creating a recovery plan; building state and local capacity to use federal disaster assistance programs; supporting business recovery; and combating fraud, waste, and abuse of government programs. Because each disaster is distinctive and the resources and capacities of every community differ, each jurisdiction will need to consider whether and how to apply these insights to its own specific circumstances. A recovery plan can provide state and local governments with a valuable tool to document and communicate recovery goals, decisions, and priorities—in effect, they can provide a roadmap for the recovery process. Just as important, the very process of developing these plans provides an opportunity for recovering jurisdictions to involve the community in identifying recovery goals and priorities. In our review of recovery plans created after past disasters, we have identified certain characteristics that facilitated the recovery process. Identify clear goals for recovery. A plan containing clear goals can provide direction and specific objectives for a recovering community to focus on and strive for. Clear goals can also help state and local governments prioritize projects, allocate resources, and establish a basis for subsequent evaluations about the recovery. After the 1995 earthquake in Kobe, Japan, jurisdictions identified specific recovery goals in their plans, such as the rebuilding of all damaged housing units in 3 years and removing all temporary housing within 5 years. These goals were critical for helping to coordinate the wide range of participants involved in recovery. Additionally, these goals allowed the government to communicate its recovery progress with the public. Each month, information on progress made toward achieving those goals was provided to the public online and to the media at press conferences. Finally, these goals provided a basis for evaluations conducted by local governments, which enabled policymakers to measure the region’s progress toward recovery, identify needed changes to existing policies, and learn lessons for future disasters. Include detailed information to facilitate implementation. Including detailed implementation information in recovery plans can help communities realize recovery goals. Implementable recovery plans specify objectives and tasks, clarify roles and responsibilities, and identify potential funding sources. Accordingly, the recovery plan created by the City of Grand Forks, North Dakota, after the 1997 Red River flood contained these elements. First, the plan outlined broad recovery goals, which were linked to a number of objectives and tasks that would help to realize those broad goals. The plan also identified a target completion date for each task so the city could better manage related activities. Second, Grand Fork’s plan assigned personnel to each task to carry out that activity. By clarifying the roles and responsibilities for those who would be involved in accomplishing specific tasks, the plan provided detailed information to facilitate implementation. Third, the Grand Forks plan identified funding sources for each recovery task. It also included a financing matrix, which presented various funding sources for each task along with target completion dates. A city evaluation found that these plan characteristics allowed the city to conceive and formulate projects in collaboration with the city council and other governmental representatives. It also helped Grand Forks meet its recovery goals as well as adhere to federal and state disaster assistance funding laws and regulations. Establish plans in a timely manner. The prompt completion of recovery plans help to facilitate the ensuing recovery process by providing a clear framework early on. Creating plans in a timely manner can be a challenge after disasters, as was the case in New Orleans after the 2005 hurricanes. However, jurisdictions affected by the Kobe earthquake devised a strategy to ensure that recovery plans were finalized promptly after the 1995 earthquake. These local jurisdictions had a relatively short amount of time in which to submit proposals for the national budget that would be considered for the coming year. Facing this deadline, officials developed a two-phase planning strategy. First, they completed a plan within 2 months of the earthquake that identified broad recovery goals to provide a basis for budget requests. Second, six months after the earthquake, local Japanese officials collaborated with citizens to develop more detailed recovery plans. This two-phase planning process enabled the jurisdictions to meet their tight national budget submission deadline while allowing additional time for communities to develop specific recovery strategies. Given the lead role that state and local governments play in disaster recovery, their ability to act effectively directly affects recovery after a major disaster. While the federal government plays a key supporting role by providing financial assistance through a range of programs, state and local governments may need certain capacities—such as having financial resources and technical know-how—to effectively take advantage of that assistance. Enhance financial capacity. The widespread destruction caused by major disasters can impose significant financial burdens on the state and local governments, such as creating unbudgeted expenses while at the same time decimating the local tax base. In addition, federal disaster programs often require state and local governments to match a portion of the assistance they receive. In the past, affected jurisdictions have used loans from a variety of sources to enhance local financial capacity. For example, after the 1997 Red River flood, the Bank of North Dakota provided a line of credit of over $44 million to the City of Grand Forks. The city used this loan to meet FEMA matching requirements, provide cash flow for the city government’s operating expenses, and fund recovery projects that commenced before the arrival of financial assistance. Strengthen technical capacity. State and local governments face the challenge of implementing the wide range of federal disaster programs. Some of these federal programs require a certain amount of technical know-how to navigate. For example, FEMA’s Public Assistance grant program has complicated paperwork requirements and multistage application processes that can place considerable demands on applicants. To strengthen their technical capacity to implement this program after the 2005 Gulf Coast hurricanes, FEMA and Mississippi state officials used federal funding to obtain an online accounting system that tracked and facilitated the sharing of operational documents. In doing so, FEMA and the state reduced the burden on applicants of meeting Public Assistance grant program requirements, gained immediate access to key documents that helped officials make project approvals, and relieved the documentation and resulting human capital responsibilities that applicants faced during project development. Business recovery is a key element of a community’s recovery after a major disaster. Small businesses are vital to a community’s economic health, yet are especially vulnerable to disasters because they often lack resources to sustain financial loss and have less capacity to withstand market changes. Federal, state, and local governments have developed strategies to facilitate business recovery, including several targeted at small businesses. Provide technical assistance to help businesses adapt to postdisaster market conditions. Major disasters can change communities in ways that require businesses to adapt. The ability of business owners to recognize change and adapt to the postdisaster market for goods and services can help those firms attain long-term viability after a disaster. Recognizing this after the 1994 Northridge earthquake, Los Angeles officials assisted neighborhood businesses in adapting to short- and long-term changes, using a combination of federal, state, and local funds. Specifically, a local nonprofit provided direct technical assistance to affected businesses such as counseling them on how to obtain government assistance and providing strategies for how to adapt to the changed business environment. This information was disseminated through door-to-door canvassing in affected areas to reach out to business owners and conferences to teach owners how to market their businesses given the changed demographics. Create strategies to minimize business relocation and the loss of customer base. Widespread business relocations after a disaster can hinder recovery. Local governments have devised strategies to retain businesses after past disasters. For example, after the Red River flood, the City of Grand Forks used the Department of Housing and Urban Development’s Community Development Block Grant funds to provide $1.75 million in loans to businesses. A feature of this program was that it forgave 40 percent of the loan principle of businesses that were still operating in the community for 3 years. According to a local official, over 70 percent of businesses that received this loan stayed in Grand Forks for 3 years. Another local strategy taken to minimize business relocation was implemented after the 1989 Loma Prieta earthquake. The City of Santa Cruz constructed large aluminum and fabric pavilions where local businesses that suffered damage relocated. City officials stated that these pavilions helped to mitigate the impact of the earthquake on small businesses by enabling them to continue operations and thereby maintain their customer base. A persistent challenge facing government at all levels is the risk of fraud, waste, and abuse of funds targeted for disaster assistance. The influx of financial assistance available after a major disaster provides increased opportunities for such activities. Both disaster victims and public funds are at risk. We identified two actions that state and local governments can take after major disasters to combat the issue of fraud, waste, and abuse. Create credentialing program to minimize instances of contractor fraud. Many disaster victims hire contractors to repair or rebuild their homes using government assistance. Residents are potential targets for fraud by unscrupulous contractors. To help protect its residents from contractor fraud after the 1997 Red River flood, the City of Grand Forks established a required credentialing program for contractors. This included a “one-stop shop” that served as a mandatory clearinghouse for contractors that wanted to do business with recovering residents. State and local officials staffing the clearinghouse carried out a variety of functions, including checking that contractors had appropriate licenses and insurance and did not have criminal records. After passing these checks and completing all the required applications, contractors were issued photo identification cards that they were required to carry at all times while working within city limits. In about 2 months, the city issued approximately 500 new contractor licenses and 2,000 contractor identification cards through the one-stop shop. During that same period, officials arrested more than 20 individuals who had outstanding warrants. In an effort to minimize instances of contractor fraud after the 2008 Midwest floods, the City of Cedar Rapids, Iowa created a similar contractor certification program modeled after Grand Forks’ program. Create comprehensive state framework to minimize fraud, waste, and abuse of federal programs.