Washington Watch - Rebuilding FEMA: Proposals for Federal Disaster Response

The future of the Federal Emergency Management Agency (FEMA) and federal disaster response is under review as the Trump administration, in coordination with the Department of Homeland Security (DHS), and federal lawmakers propose significant policy changes. Amid criticism of FEMA's lack of efficiency and transparency as well as ongoing funding challenges, the current administration and Congress are both re-examining how the federal government responds to disasters across the country.

The North Carolina Association of County Commissioners (NCACC) federal legislative priorities include support for increased funding for disaster preparation, assistance, and mitigation.

Specifically, NCACC's legislative goal calls for "legislation or policy changes that expedite and expand county use of federal disaster assistance funds; legislation or policy changes to streamline and expedite the FEMA individual assistance process; and legislation to review and update flood maps more frequently in counties experiencing high rates of population growth and counties prone to flooding." The current FEMA debate encompasses many of these issues.

Administration Developments

FEMA has faced longstanding criticisms for its complicated application processes and slow response times. Earlier this year, President Donald Trump and DHS Secretary Kristi Noem proposed eliminating FEMA, suggesting that states should instead receive direct federal block grants for disaster response and recovery. The Trump administration has already begun scaling back the agency's footprint and has reduced FEMA's staff by one-third.

Citing the need to scrutinize these programs for compliance with Executive Orders on immigration and diversity, equity, and inclusion policies, the Trump administration has taken significant steps to restrict disaster response funding. Actions include freezing $10 billion in disaster relief aid for nonprofits, canceling the $600 million Flood Mitigation Assistance grant opportunity for fiscal year 2025, and terminating the Building Resilient Infrastructure and Communities (BRIC) program, which provided pre-disaster mitigation funding. In addition, Secretary Noem must personally approve all FEMA grants in excess of $100,000.

Despite these developments, the BRIC program still has strong bipartisan support. On May 12, 2025, U.S. Senator Thom Tillis led a bicameral, bipartisan letter with over 80 signatures requesting that Secretary Noem reinstate BRIC. Moreover, recent devastating floods and storms are shifting the focus more toward streamlining the agency's emergency response capabilities.

FEMA Review Council and Task Force

President Trump established the FEMA Review Council on January 24, 2025, in an Executive Order titled Council to Assess the Federal Emergency Management Agency. He appointed members in April 2025, and they have convened three times, most recently on August 28, 2025. The council has until November 16, 2025, to submit its report. They are continuing to incorporate stakeholder feedback into their recommendations before submitting them to the president.

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). Former Republican National Committee Chairman Michael Whatley chairs the task force and serves on the FEMA Review Council.

Representative Chuck Edwards (NC-11) played a leading role in submitting reform proposals to the White House and the FEMA Task Force. His recommendations include provisions to expand expedited funding for public infrastructure projects, increase the federal cost share for major repairs, extend FEMA eligibility to cover private roads and bridges, and streamline disaster funding access for farmers and local governments. Rep Edwards also supports modernizing FEMA's technology systems and consolidating redundant programs.

Congressional Developments

Most recently, on September 3, 2025, the House Transportation and Infrastructure Committee passed the Fixing Emergency Management for Americans Act of 2025 (FEMA Act) with a 57-3 vote. Federal lawmakers continue to work on the legislation as it moves toward the House floor for consideration before sending it to the Senate. With the gathering momentum and strong bipartisan support, this bill will likely serve as Congress' vehicle to reform FEMA policies.

The legislation restores FEMA to a Cabinet-level agency, establishes an independent inspector general to enhance accountability and transparency, and outlines qualifications for the FEMA administrator and deputy administrator, including at least five years of executive leadership and a demonstrated understanding of emergency management.

The FEMA Act establishes a process for preapproval of state mitigation project plans. A new 30-member expert panel will conduct this review, and projects that receive approval become eligible for expedited funding and an enhanced federal cost share of up to 85%. Jurisdictions that fail to submit mitigation plans within three years will forfeit eligibility for the 85% federal cost share.

The legislation converts Pre-Disaster Funding (Stafford Act Section 203) from a competitive grant program to a formula-based allocation. The new formula distributes funds as follows: 40% baseline to all states: 20% based on risk; 20% based on population and median income; and 20% targeted to distressed and rural areas, with a set-aside for tribal governments. States are required to pass at least 50% of their formula funds to local governments.

Among other provisions, the bill replaces FEMA's traditionally slow reimbursement system with project-based grants, creates a universal and streamlined application process for disaster assistance, and mandates faster disbursement of federal funds. It streamlines small-scale disaster recovery by providing lump-sum settlement options and creates new programs, including emergency home repair initiatives and pilot programs for home retrofits. In addition, members of Congress will be notified when FEMA grants are awarded in their districts to improve transparency and coordination.

The FEMA Act contains multiple legislative proposals that have already been introduced in the Senate, for example, 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. The FEMA Independence Act 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.

Impacts on Helene Recovery

Following Hurricane Helene, FEMA provided North Carolina with a historically high level of assistance, including a 100% cost-share agreement for the first six months following the hurricane. Over $500 million in federal assistance has been 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. Currently, for Helene recovery efforts, North Carolina receives a 90% federal cost-share (above the typical 75%), but there have been freezes and delays in funding, leading to frustration and demands to release appropriated funds for disaster relief. On September 9, 2025, U.S. Sen. Ted Budd voted against advancing one of President Trump's nominees and put holds on three DHS nominees to call the administration's attention to the impact delays are having in western North Carolina. Shortly thereafter, the DHS released millions in new FEMA grants to North Carolina counties.

Governor Stein's FEMA Reform Recommendations

In May 2025, Governor Stein issued a set of recommendations for FEMA reform, emphasizing the need for a more responsive, flexible, and survivor-focused federal disaster system. To better assist disaster survivors, the governor's proposal recommends streamlining application forms, providing upfront funding instead of post-project reimbursement, and allowing for permanent building upgrades beyond pre-disaster conditions. He also recommended requiring states to provide mitigation plans to FEMA for preapproval. Many of these provisions are similar to what is proposed in the FEMA Act, but Governor Stein also urged the reinstatement of the BRIC program.

Conclusion

The complex and uncertain future of FEMA is now a central topic of federal debate, with both the administration and Congress pursuing distinct, and sometimes conflicting, paths to reform. While the Trump administration has taken steps to reduce the agency's size and restrict funding, Congress is advancing a bipartisan legislative agenda to strengthen FEMA by making it a Cabinet-level agency, streamlining its processes, and providing reliable funding for pre-disaster mitigation. When the president's FEMA Review Council submits its recommendations,

Congress may seek to include their proposals in the FEMA Act. The coming months will be critical in determining the shape of federal disaster response for years to come.