Report warns of up to 50% drop in US federal emergency funds from FEMA

Proposed funding cuts by the Trump administration could slash federal disaster relief funds from the Federal Emergency Management Agency (FEMA) by as much as 50%, according to a report by the Florida Policy Institute (FPI).

The report highlights that Florida, which has received substantial federal funding for hurricane, tropical storm, and flood damage in recent years, would be disproportionately impacted. In 2023 and 2024 alone, Florida documented over $38.5 billion in damages, with $16.18 billion reimbursed by federal funds. The new policies proposed by the FEMA Review Council, appointed by Trump, aim to cap federal reimbursements at 50% of disaster costs, a significant reduction from the current 75% maximum.

FEMA's current rules have often provided 100% reimbursement for major hurricanes like Irma, Bay, Lee, and Taylor between 2017 and 2024, and 90% for Hurricane Irma. The FPI investigation, authored by Ethan Frey, indicates that these new guidelines would effectively mean 40% to 50% less funding for the state. Frey stated that Florida would have needed to allocate an additional $3.5 billion over the five storms analyzed if these new rules had been in place.

These potential cuts come amid broader reductions in FEMA's workforce, with 4,300 employees reportedly separated from their positions in fiscal year 2025. Frey expressed concern that the significantly reduced FEMA staff could hinder the agency's response capabilities in the event of a major storm. The report also points to reductions in climate forecasting programs at the National Oceanic and Atmospheric Administration (NOAA) and climate observation funding, further compounding concerns about disaster preparedness.