Capitol Corner: Rebuilding FEMA: Proposals for Federal Disaster Response
The future of the Federal Emergency Management Agency (FEMA) and federal disaster response remains uncertain as the Trump administration, in coordination with the Department of Homeland Security (DHS), proposes significant changes. Amid criticism of FEMA’s lack of efficiency and transparency as well as ongoing funding challenges, the administration and Congress are both re-examining how the federal government responds to disasters across the country.
Administration Developments
FEMA has faced longstanding criticisms for its complicated application processes and slow response times. President Donald Trump and DHS Secretary Kristi Noem have proposed eliminating FEMA, suggesting that states should instead receive direct federal block grants for disaster response and recovery. As part of that shift, the Administration has already begun scaling back the agency’s footprint. President Trump has cut FEMA’s staff by one-third, raising concerns about the agency’s capacity to respond to the 2025 hurricane season.
On April 4th, 2025, FEMA canceled the Building Resilient Infrastructure and Communities (BRIC) program, which provided funding for local projects that reduce disaster damage, citing concerns about program inefficiencies and political priorities such as Diversity, Equity, and Inclusion (DEI) initiatives and climate change. BRIC grant awards from 2020 to 2023, along with any undistributed funds, were also canceled. However, the BRIC program still has strong bipartisan support. On May 12, 2025, U.S. Senator Thom Tillis led a bicameral, bipartisan letter with over eighty signatures requesting Secretary Kristi Noem to reinstate BRIC.
The administration froze an additional $10 billion in disaster aid for nonprofits while it continues to scrutinize these programs for compliance with Executive Orders on immigration and DEI policies. FEMA also canceled the FY2025 $600 million Flood Mitigation Assistance grant opportunity. Furthermore, Secretary Noem now requires that all FEMA grants exceeding $100,000 receive her personal approval.
FEMA Review Council and Task Force
President Trump established the FEMA Review Council on January 24, 2025, by Executive Order 14180, titled Council to Assess the Federal Emergency Management Agency, and appointed members in April 2025. The first meeting took place on May 20, 2025. The council has 180 days (until November 16, 2025) to submit its report, advising the President on how to improve federal disaster response.
President Trump also established a separate FEMA Task Force on January 24, 2025, to address disaster recovery in Western North Carolina following Hurricane Helene (2024). The task force includes U.S. Representatives Virginia Foxx (NC-05), Chuck Edwards (NC-11), and Tim Moore (NC-14). Republican National Committee Chairman Michael Whatley chairs the task force and serves on the FEMA Review Council.
Rep. Chuck Edwards (NC-11) played a leading role in submitting reform proposals to the White House and the FEMA task force. His recommendations include:
Expanding FEMA eligibility to cover private roads and bridges.
Speeding up Community Development Block Grant-Disaster Recovery (CDBG-DR) action plans.
Increasing federal cost share for major highway repairs and disaster corridors.
Expanding expedited project funding for public infrastructure.
Exempting Small Business Administration (SBA) disaster loans from the “duplication of benefits” rule.
Streamlining disaster funding access for farmers and local governments.
Granting procurement flexibility and “hold harmless” protections for local agencies.
Modernizing FEMA’s technology and consolidating overlapping programs.
Increasing state authority for pre-disaster hazard mitigation planning.
Congressional Developments
On May 8, 2025, the House Transportation and Infrastructure Committee introduced a discussion draft titled the Fixing Emergency Management for Americans Act (FEMA) Act of 2025. The committee is now seeking feedback from members of Congress and stakeholders.
Although multiple FEMA reform bills have been proposed, this discussion draft, led by Chairman Sam Graves (R-MO) and Committee Ranking Member Rick Larsen (D-WA), appears the most likely to advance. Proposed changes include:
Transforms FEMA into a Cabinet-level agency accountable directly to the President.
Implements project-based grants from a reimbursement model to prioritize the highest-need projects and speed up rebuilding efforts.
Requires disbursing funds within 120 days of a disaster declaration.
Includes a sliding federal cost-share ranging from 65 to 85 percent.
Establishes a Recovery Task Force to close out more than 1,000 cases that date back to Hurricane Katrina (2005).
Implement a single streamlined application for disaster survivors.
Expands authority to repair homes beyond basic habitability.
Clarifies that charitable donations will not be treated as a duplication of benefits.
Requires states to develop a list of pre-approved mitigation projects once funding becomes available.
Requires identifying at least one project in each county.
Broadens the definition of meeting building code requirements.
Requires OMB and GAO to have continuous, open audits of FEMA to ensure transparency and efficiency.
On April 3, 2025, U.S. Senators Thom Tillis (R-NC) and Alex Padilla (D-CA) proposed the FEMA Independence Act. The bipartisan legislation, also cosponsored by Senators Ted Budd (R-NC) and Raphael Warnock (D-GA), would remove FEMA from the Department of Homeland Security and establish it as an independent, cabinet-level agency. It also proposes streamlining the FEMA application process and includes enhancements to the agency’s effectiveness. The bill has been referred to the Senate Homeland Security and Governmental Affairs Committee.
FY 2026 FEMA Appropriations
The House Appropriations Subcommittee on Homeland Security proposed allocating $31.8 billion to FEMA, a $4.5 billion increase over the enacted levels for FY 2025. This includes $26.5 billion for the Disaster Relief Fund (DRF), $3.7 billion for grants, education, training, and exercises, and $720 million for assistance to fire departments and firefighter staffing. Other notable allocations include $90 million for Operation Stonegarden, $305 million for Nonprofit Security Grants, $101 million for the National Domestic Preparedness Consortium, $105.1 million for Pre-Disaster Mitigation grants, and $64.9 million for Emergency Operations Center grants.
Impacts on North Carolina
Following Hurricane Helene, North Carolina received a historically high level of FEMA assistance, including a 100% cost-share agreement for the first six months following the hurricane. Over $484 million in federal assistance was approved, with more than $455 million distributed directly to affected individuals for food, medicine, housing, and repairs, as well as $22.4 million for private road and bridge repairs. As of June 2025, North Carolina receives a 90% federal cost-share (far above the typical 75%) and has over 785 FEMA staff members remaining in the state, supporting 2,700 active public assistance projects. However, the federal funding freeze stalled $105.6 million in state funding, which has 159 pending awards. The cancellation of BRIC and other federal grant programs also limits North Carolina’s capacity to build long-term resilience.
Summary
The ongoing re-evaluation of FEMA and federal disaster response by both the Trump administration and Congress represents a crucial moment for disaster preparedness and recovery in the United States. Proposed changes–such as potentially eliminating FEMA in favor of state block grants, canceling key mitigation programs (such as BRIC), and freezing federal emergency aid–indicate a historic shift in federal priorities and responsibilities. While bipartisan efforts in Congress take a different approach, these legislative proposals aim to elevate FEMA to a Cabinet-level agency, streamline funding mechanisms, and enhance support for disaster survivors. As lawmakers consider a range of recommendations to modernize and improve the system, there is a shared recognition of the need to strengthen the nation’s disaster response framework to better serve communities facing future catastrophic events.
About the author: Kai Macauley is the legislative intern for Strategics Consulting.
