Proposed FEMA Funding Overhaul May Reduce Disaster Aid for States
A panel convened by President Trump has proposed a revamp of FEMA funding, potentially reducing federal aid for disaster recovery. The new system would allocate funds based on the hazard level, such as a Category 4 hurricane, rather than actual damage assessments.
This change aims to expedite aid distribution, providing funds within 30 days of a presidential declaration. However, it raises concerns about insufficient or excessive funding without damage evaluations.
The panel, co-chaired by Homeland Security Secretary Kristi Noem and Defense Secretary Pete Hegseth, also suggests halving FEMA's staff and forgiving its $20.5 billion debt, pending congressional approval. The recommendations follow criticisms of FEMA's response to Hurricane Helene in 2024. A vote on the draft recommendations was canceled, leaving the future of the proposal uncertain.
