Just a few days into the new fiscal year, the Federal Emergency Management Agency (FEMA) has already burned through nearly half of its disaster relief fund, with much of the $9 billion going to states hit hard by Hurricanes Helene and Milton.
With $11 billion remaining of the $20 billion allocated by Congress for 2025, FEMA Administrator Deanne Criswell warned that without additional funding, the agency could be forced to halt long-term rebuilding projects and focus solely on life-saving operations.
“We keep a reserve in the Disaster Relief Fund to ensure I can always cover life-saving activities,” Criswell said during a Wednesday briefing, as Hurricane Milton wreaked havoc across Florida’s Gulf Coast.
FEMA’s remaining disaster funds, already under strain, could be depleted even faster as the agency responds to the ongoing devastation caused by these recent hurricanes
President Biden has requested more FEMA funding since last October, but Congress has yet to act. On Wednesday, a group of House Democrats urged Speaker Mike Johnson to reconvene Congress to pass additional disaster relief funding.
Without it, FEMA may have to impose spending restrictions earlier than expected, halting key infrastructure repairs like roads and water-treatment plants nationwide.
Adding to the urgency, the Small Business Administration’s (SBA) disaster loan program, which offers low-interest loans to homeowners and businesses, is also facing a funding shortfall.
SBA Administrator Isabel Casillas Guzman said funds would run out by the end of October, further pressuring FEMA’s resources as individuals shift from SBA loans to FEMA’s emergency aid.The rapid depletion of FEMA’s disaster funds is unprecedented. If spending restrictions are implemented as early as December, it would be the soonest FEMA has ever taken such action, putting long-term recovery efforts at risk and leaving communities vulnerable in the aftermath of future disasters.