Forms of Assistance

(1) Assistance from the Fund may be provided in the form of grants. The Secretary shall provide written notice to eligible recipients whose requests are approved, approved in part, or denied, including the amount of any award and the basis for determination. (2) To preserve capacity for future catastrophic events, no more than 25% of the Fund balance as of the first day of the fiscal year shall be expended on a single catastrophic event, unless the Secretary determines that exceeding this threshold is necessary due to extraordinary magnitude, severity, or demonstrated need.