If a recipient receives an allocation of insurance proceeds, will this affect the amount of Federal recovery funds available to them?

Please see FTA’s recent Dear Colleague letter and policy guidance on this question. If the Federal recovery allocation plus any insurance proceeds received together exceed the total amount of estimated damages, FTA will reduce the recovery allocation to equal 100 percent of the estimated damage. A grantee may request that FTA adjust the total damage estimate by submitting evidence of additional damage or increased recovery costs.