The Federal Emergency Management Agency (FEMA) is facing a serious funding shortage following the devastation caused by back-to-back hurricanes Helene and Milton, and the agency’s head, Deanne Criswell, warned that this could hinder the government’s ability to respond to future disasters.
During a Senate hearing on Wednesday, Criswell revealed that FEMA’s disaster relief fund — the primary source of emergency funding for the country — has dwindled to less than $5 billion. This shortfall has prompted the Biden administration to request nearly $100 billion in additional disaster aid from Congress, with about $40 billion earmarked specifically for FEMA’s disaster relief fund.
FEMA relies on this fund to cover essential costs such as debris removal, rebuilding public infrastructure, and providing financial support for disaster survivors, including assistance for temporary housing. The remaining funds would be allocated to other federal agencies as follows:
$24 billion for farmers who suffered crop and livestock losses
$12 billion for the Department of Housing and Urban Development to support community recovery efforts
$8 billion for repairs and rebuilding of highways and bridges
$4 billion for long-term water system upgrades to reduce future disaster damage
In September, FEMA received $20.2 billion as part of a temporary government funding bill, but nearly half of that has already been used for recovery from past disasters. Criswell stated that FEMA is currently managing over 100 ongoing disaster recovery efforts, which have already exhausted much of the available funds.
The agency has allocated nearly $8 billion for disaster relief in response to hurricanes Helene and Milton alone, leaving less than $5 billion in its fund. Criswell emphasized that without additional funding, FEMA’s ability to respond to new emergencies could be at risk.
FEMA is considering activating its immediate needs funding, which involves reallocating money from long-term projects to address urgent, life-saving needs in the face of upcoming disasters. Criswell stressed that the rising frequency and severity of natural disasters make it more critical than ever for FEMA and its federal partners to have adequate resources to support affected communities.
The Senate committee also heard from senators representing Georgia and North Carolina, two states severely impacted by the recent hurricanes. Senator Jon Ossoff from Georgia highlighted the toll the storms had taken on the state’s farmers and ranchers, while Senator Thom Tillis from North Carolina discussed the ongoing recovery challenges in the western part of his state.
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