Disaster Financial Assistance Arrangements (DFAA) is the federal program that provides financial assistance to provincial and territorial governments when natural disaster response and recovery costs exceed what they could reasonably be expected to bear alone. The program operates on a cost-sharing formula: provinces pay initial costs up to a threshold, then the federal share increases progressively as per-capita costs rise. DFAA covers response, restoration, and mitigation costs but flows through provinces—municipalities don't apply directly to the federal government but rather claim through provincial disaster assistance programs. Eligible costs include evacuations, emergency food and shelter, restoration of public works, and some assistance to individuals. Recent years have seen dramatically increasing DFAA claims as climate change intensifies floods, wildfires, and storms, prompting discussions about program sustainability and greater investment in disaster prevention.