The Trump administration quickly changes the Federal Authority for Emergency Management (FEMA) in a way that has an enormous impact on state and local governments.
“We will spend less money. We will spend it directly. It will come from the president’s office,” said President Donald Trump at a press conference on June 11th.
The agency is responsible for the coordination of the reaction and recovery in disasters, ranging from floods to forest fires and terrorist attacks.
In the 2025 financial year, the agency reported a total budget authority of $ 60 billion. The federal expenses for disaster relief often draw additional funds from the congress.
Critics of the Fema say that the agency pays victims slowly and gives the municipalities a guide as part of the reconstruction.
“For years we have recommended that you have been working on the tightening of your recovery programs that you will better coordinate your programs so that there are no other federal government and survivors. And frankly, they simply couldn’t do this,” said Chris Currie, director of the state accountability, in an interview with CNBC.
According to a report published in March, Fema currently heads more than 600 open disaster declarations. According to expenses, the FEMA in the 2025 financial year for the recovery of Hurricanes Katrina, Rita and Wilma, which devastated huge swaths on the Gulf Coast in 2005.
Reasurements of federal financing for disaster relief would be burdened by state and local governments in areas affected by disasters.
When the hurricane Helene met the USA at the end of September 2024, he caused damage of 59.6 billion US dollars in North Carolina, according to the governor -Recovery Office for Western North Carolina. From May 2025, the Federal Government had provided Recovery Fund of around 3.7 billion US dollars -according to Josh Stein’s office by the democratic governor Josh Stein.
A FEMA spokesman said in a statement to CNBC: “The FEMA’s principles for emergency management claim that disasters are best managed if they are supported by the state, managed by the state and executed locally.”
A lot of work remains almost a year after Helene damaged many parts of Western North Carolina. According to a report by Rep. Chuck Edwards, Rn.C. The main roads were also damaged, including a route of I-40, and the state needs additional federal funds to cover the costs for the repair of roads, according to Edwards’ report.
The average income in the disaster area is $ 35,809 and $ 55,607 depending on the county, according to Edwards’ report.
“In order not to have a Fema, the local governments now have to deal with a catastrophe, and it is always greater than the income of the local government,” said Sarah Wells Rolland, founder and owner of the Village Potters Clay Center in Asheville, North Carolina. “In order for the financing to be taken away, I think a colossal disaster.”
Wells Rolland said that her business will be operated in Asheville’s River Arts District for 13 years before the hurricane Helene went through the city. According to NOAA, the business was destroyed by more than 24 feet flood. According to Wells Rolland, the Village Potter’s Clay Center, which achieved around 743,000 US dollars for annual sales revenue in 2023, was documented by almost 200,000 US dollars.
The company had flood insurance from the national flood insurance of the FEMA and, according to Wells Rolland, received a payment of 165,000 US dollars. She plans to reopen this autumn in a new place on higher ground.
“We are an economic driver for tourism, hospitality, restaurants and regional development, so we are an integral part of our economic community,” said Jeffrey Burroughs, President of the River Arts District Association. “If we cannot take out any other loan, how can we get the financing to support ourselves so that we can remain open?”
Watch that video Above to see how the Fema could develop in the coming years.
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