A review council appointed by the Trump administration has proposed significant changes to the Federal Emergency Management Agency (FEMA), including staff reductions and modifications to federal disaster aid qualifications. These proposals follow a period where the administration previously withheld billions in federal grants for disaster preparedness and prevention programs, leading to a lawsuit and the subsequent reinstatement of funding, though challenges persist for communities seeking aid.
Proposed Overhaul of FEMA Operations
The Trump administration initiated a review of the Federal Emergency Management Agency (FEMA) through a 12-person council appointed by President Trump. A December draft report, obtained by NPR, included preliminary recommendations that suggested eliminating FEMA in its current structure. A final report is expected in late March.
Key proposals outlined in the draft report include:
Staff Reduction
Recommendations suggested cutting over 12,000 FEMA positions, primarily within its disaster workforce. FEMA had already reduced its employee count by approximately 2,000 since the administration took office, with further reductions planned. The U.S. Government Accountability Office had previously identified FEMA as understaffed.
Emergency management experts indicated that a substantial staff reduction could hinder disaster response efforts and slow assistance to affected individuals.
Increased Threshold for Federal Aid
Proposals aimed to make it more difficult for states to qualify for federal funds and to reduce the aid received when they do. The FEMA Review Council suggested updating the disaster threshold formula, stating that the current formula has not kept pace with inflation.
An estimate indicated that if the proposed change had been in effect, 29% of disasters declared between 2012 and 2025, totaling $1.5 billion, would not have met the revised indicator. While many disaster experts acknowledge the need to adjust the federal disaster aid threshold, a consensus on the exact level remains unestablished. State and local emergency managers raised concerns regarding the potential for increased financial burden on states.
Parametric Triggers for Assistance
The council recommended transitioning from determining federal disaster assistance based on estimated damage costs to using parametric triggers.
Withholding and Reinstatement of Disaster Preparedness Funds
For the past year, federal grants for infrastructure projects designed for disaster preparedness and prevention were inaccessible. The Trump administration withheld billions of dollars allocated for these programs, specifically canceling the Building Resilient Infrastructure and Communities (BRIC) program last year. The administration cited concerns about "waste, fraud and abuse" as the reason for the cancellation. The BRIC program, initially expanded in 2018, aimed to enhance community resilience against extreme weather events.
Following a lawsuit filed by 20 states, a federal judge ordered the reinstatement of the BRIC program. The Federal Emergency Management Agency (FEMA) subsequently agreed to restart the program.
The upcoming funding cycle is anticipated to be highly competitive, with applicants from two years vying for a single year's allocation of funds. FEMA has stated that "major infrastructure projects" will be prioritized.
Uncertainty persists regarding the timeline for fund disbursement and the eligibility of climate-related projects, as FEMA has not provided specific details on these matters. Administrative delays are also expected, partly due to a reported reduction in FEMA's workforce.
Impact on Communities and Future Outlook
Small, rural communities often rely significantly on federal funding for large-scale infrastructure projects due to their limited local tax bases. For instance, the town of Duryea, Pennsylvania, which requires an estimated $11 million to raise its protective levee, faces a project cost approximately three times its total annual budget.
Experts from the Urban Institute highlighted the potential for increased vulnerability in such communities as a result of funding delays.
The Trump administration has publicly expressed criticism of FEMA's focus on climate change initiatives and its spending levels. Incoming DHS Secretary Markwayne Mullin has also suggested a potential "restructuring" of FEMA. These statements contribute to ongoing uncertainty about future fund allocations, particularly for projects addressing climate change impacts such as sea-level rise and wildfires.
Additionally, smaller communities may face challenges in securing funding due to a potential lack of specialized staff required to navigate complex federal grant applications, especially when competing with larger, more resourced applicants.