FEMA nears disaster fund crisis as hurricanes drain resources

FEMA has already used nearly half of its disaster budget for 2025, prompting potential cuts to rebuilding efforts unless Congress approves additional funding.

Thomas Frank and Anne C. Mulkern report for POLITICO.

In short:

• FEMA has spent $9 billion of its $20 billion disaster fund only eight days into the fiscal year, with Hurricanes Helene and Milton adding pressure.
• Without more funding, FEMA may halt non-essential projects, focusing only on life-saving operations, as it did in previous budget shortages.
• The Small Business Administration also faces funding shortfalls, risking delays for low-interest loans to disaster-affected individuals.

Key quote:

“We keep a reserve in the Disaster Relief Fund to make sure I can always cover these life-saving activities.”

— Deanne Criswell, FEMA Administrator

Why this matters:

FEMA's rapidly depleting funds threaten the recovery of communities hit by disasters like hurricanes. Without action, essential repairs to infrastructure like roads and water systems could be delayed for months.

For more: FEMA faces potential funding shortfall amid increasing natural disasters