Layton said only specific expenses will apply, such as debris removal and response efforts by local police and fire and highway departments, and that eligible local municipalities could get up to 75 percent of their costs reimbursed from the ice storm.
"They'll [municipalities] set up points of contact with FEMA through us, and then send them the paperwork directly," Layton said. "We found it to be the best way over the years to streamline the process."
There are 16 counties in New York, including Albany, Schenectady and Saratoga counties, which are eligible for FEMA funding. Layton said the last major emergency disaster eligible for FEMA was the April flooding in 2007 that was extensive around the state.
"We're very lucky to be eligible for this federal funding," Layton said. "Especially during these times of economic crisis."
Dan Sabbitino contributed to this story.