Numerous hurricanes strain Washington's disaster response initiatives
As Hurricane Milton approaches Florida's Gulf Coast, federal relief, loan, and flood insurance programs are confronting increasing costs and scrutiny regarding their capacity to provide assistance.
TroibNews 
The federal government may be on the brink of failing to adequately respond to major disasters as Florida braces for its second devastating hurricane in less than two weeks.
Hurricane Milton, a Category 5 storm with winds reaching 180 mph as of late Monday, is heading towards a potential landfall in Tampa Bay. This comes at a time when federal disaster programs are experiencing financial instability due to a succession of recent emergencies, including Hurricane Helene, which caused extensive flooding across the Southeast.
Key programs in jeopardy include the Federal Emergency Management Agency’s (FEMA) disaster fund, which finances recovery and rebuilding; the Small Business Administration's loans for affected businesses and homeowners; and FEMA's flood insurance program. All of these programs may soon run out of funds, a situation highlighted by remarks from President Joe Biden, Homeland Security Secretary Alejandro Mayorkas, and various insurance analysts. This is occurring even as FEMA reassured the public Monday about its capacity to fulfill its "life-saving" responsibilities regarding both Helene and Milton.
As the situation escalates, bipartisan calls have emerged for Congress to reconvene before the November election to secure additional disaster funding. However, fiscal conservatives in the House have resisted such efforts, with Speaker Mike Johnson stating over the weekend that he has no intention of calling members back.
Elizabeth Zimmerman, who previously led FEMA's disaster response office during the Obama administration, expressed concerns about the federal government’s ability to finance recovery efforts. She indicated that the current situation could significantly impact the government's financial resources. "It could be very devastating to the financial aspects of what the federal government has," she warned.
Security around federal resources is increasing, with Zimmerman stating that the recent hurricanes raise questions about FEMA's capacity to respond effectively to future disasters that require essential support. Mayorkas has indicated that FEMA's disaster fund might deplete by next month, restricting its ability to finance the reconstruction of vital public infrastructure like roads and water-treatment facilities. Moreover, according to credit-ratings agency AM Best, FEMA's flood insurance program, which serves nearly 2 million policies in areas affected by Helene or threatened by Milton, may soon lack sufficient funds to cover claims, potentially necessitating borrowing from taxpayers.
In a letter to Congress, Biden cautioned that the Small Business Administration “will run out of funding in a few weeks” for issuing low-interest disaster loans for recovery purposes—something vital for homeowners and businesses alike.
Even a smaller disaster program administered by the Federal Highway Administration is confronting budget issues that could curtail its ability to repair federal roads damaged by the hurricanes.
The SBA’s disaster loan program disbursed $45 billion in loans—primarily to homeowners—from 2001 through 2022. A failure to provide loans for recovery after Helene and Milton would significantly hinder the recovery process and further strain FEMA's disaster fund by necessitating more emergency aid disbursements.
Additionally, FEMA is under immediate pressure to save lives in regions affected by the storms. The agency’s Daily Operations Briefing published Monday indicated that its Urban Search and Rescue operations are currently "not mission capable" with only four teams available.
More than 200 counties, impacting 31 million individuals across six states, have been declared federal disasters due to Helene or Milton. Helene has resulted in a death toll of at least 230 after wreaking havoc on Florida’s Gulf Coast, impacting areas such as Georgia, North Carolina, and Tennessee.
Milton threatens to pose an even graver risk with its trajectory aiming directly at Tampa Bay, identified as one of the most susceptible U.S. locales for storm surge. This region of over 3 million residents has not experienced a major hurricane strike since 1921, and experts warn that a direct hit could lead to losses in the hundreds of billions of dollars.
National Weather Service Director Ken Graham described the potential devastation of Hurricane Milton as “not a good situation.”
The recent warnings from Biden, Mayorkas, and experts regarding disaster funding starkly contrast with previous optimistic financial predictions prior to Milton's approach towards Florida.
During a press briefing Monday, a senior FEMA official sought to reassure the public about the agency's immediate capabilities, refraining from directly addressing the long-term funding concerns. “We are supporting the life-saving requirements that we have,” said Keith Turi, acting Associate Administrator for Response and Recovery at FEMA, in reference to Helene and Milton. “If there’s a point in which we need to take additional measures, … then we’ll take those measures when the time is appropriate.”
Turi noted that FEMA was relocating three search-and-rescue teams from California to assist in the Southeast and had enlisted support from the Coast Guard.
The precarious condition of federal disaster programs has led to mounting pressure on Congress to conclude its election-season recess ahead of schedule to approve additional aid.
Reiterating his position on Sunday, Johnson declined to summon the House back before its scheduled return on Nov. 12. “We will help people in these disaster-prone areas,” Johnson stated during an appearance on Fox News. “It’ll all happen in due time.”
The tripartite fiscal strain faced by federal disaster programs is unprecedented. While each of these programs has encountered budgetary constraints before, never has it occurred simultaneously.
This current financial shortfall arises from deep-rooted vulnerabilities in the programs combined with the escalating frequency and severity of disasters fueled by climate change and expansion. “The frequency and intensity of disasters continue to increase every year, and the number of federal disaster declarations continues to rise in parallel,” noted Carrie Speranza, president of the International Association of Emergency Managers.
Carlos Martín, director of the Remodeling Futures Program at the Harvard Joint Center for Housing Studies, remarked that FEMA is grappling with the task of funding both long-term recovery expenditures and immediate emergency costs. “When you're questioning that, and that becomes a question of whether the federal government will play the role that it has over the last 50 years, that’s a huge concern,” Martín warned.
In early August, FEMA's multibillion-dollar Disaster Relief Fund encountered difficulties as it neared depletion, resulting in the agency's restrictions that temporarily cut $9 billion in funding for rebuilding initiatives.
Although FEMA lifted these restrictions on Oct. 1 following a $20 billion allocation from Congress for the current fiscal year, the agency could quickly deplete this funding, necessitating a return to restrictions if lawmakers fail to provide additional resources.
Mayorkas cautioned last week that FEMA “does not have the funds to make it through the [hurricane] season,” which concludes on Nov. 30.
White House Press Secretary Karine Jean-Pierre echoed similar sentiments on Monday, asserting, “The FEMA disaster relief fund faces a shortfall at the end of the year.”
“The recovery from this is going to be very costly,” said Zimmerman, the former FEMA official, highlighting the high expenses associated with response efforts, particularly search-and-rescue operations.
FEMA's National Flood Insurance Program (NFIP) may also run short on funds due to foundational shortcomings established when Congress created the program in 1968, particularly the failure to require insurance premiums that adequately reflect a property’s flood risk. This has forced FEMA to borrow $20.5 billion from the U.S. Treasury following 2017 hurricanes Harvey, Irma, and Maria, leaving FEMA unable to repay this debt while only permitting an additional $10 billion in borrowing to settle insurance claims.
“I don’t think the NFIP needs to dig into its borrowing authority for Helene,” stated Sridhar Manyem, senior director of industry research at AM Best. "But Milton is another story. That could be a game-changer."
Hurricane Milton “could exhaust the NFIP and require the government to have to provide more funding for payments to be made to NFIP policyholders,” warned David Blades, associate director at AM Best.
FEMA indicated it has the capacity to cover $14.8 billion in NFIP claims “without seeking additional assistance from Congress.” The only disaster surpassing that figure was Hurricane Katrina, which concluded with claims payments over $16 billion while claiming more than 1,300 lives in New Orleans and nearby regions. Like Katrina, Milton has escalated to Category 5 intensity over the warm waters of the Gulf of Mexico and is anticipated to remain hazardous even if its winds ease slightly before landfall.
Jeremy Porter, leading climate implications research at the climate risk modeling firm First Street, offered a more optimistic outlook, predicting that Helene and Milton “are not likely to exhaust NFIP’s borrowing authority,” partly due to the limited number of national flood insurance policies among residents in the heavily impacted areas of Georgia and North Carolina.
Anne C. Mulkern and Mike Lee contributed to this report.
Alejandro Jose Martinez for TROIB News
Hurricane Milton, a Category 5 storm with winds reaching 180 mph as of late Monday, is heading towards a potential landfall in Tampa Bay. This comes at a time when federal disaster programs are experiencing financial instability due to a succession of recent emergencies, including Hurricane Helene, which caused extensive flooding across the Southeast.
Key programs in jeopardy include the Federal Emergency Management Agency’s (FEMA) disaster fund, which finances recovery and rebuilding; the Small Business Administration's loans for affected businesses and homeowners; and FEMA's flood insurance program. All of these programs may soon run out of funds, a situation highlighted by remarks from President Joe Biden, Homeland Security Secretary Alejandro Mayorkas, and various insurance analysts. This is occurring even as FEMA reassured the public Monday about its capacity to fulfill its "life-saving" responsibilities regarding both Helene and Milton.
As the situation escalates, bipartisan calls have emerged for Congress to reconvene before the November election to secure additional disaster funding. However, fiscal conservatives in the House have resisted such efforts, with Speaker Mike Johnson stating over the weekend that he has no intention of calling members back.
Elizabeth Zimmerman, who previously led FEMA's disaster response office during the Obama administration, expressed concerns about the federal government’s ability to finance recovery efforts. She indicated that the current situation could significantly impact the government's financial resources. "It could be very devastating to the financial aspects of what the federal government has," she warned.
Security around federal resources is increasing, with Zimmerman stating that the recent hurricanes raise questions about FEMA's capacity to respond effectively to future disasters that require essential support. Mayorkas has indicated that FEMA's disaster fund might deplete by next month, restricting its ability to finance the reconstruction of vital public infrastructure like roads and water-treatment facilities. Moreover, according to credit-ratings agency AM Best, FEMA's flood insurance program, which serves nearly 2 million policies in areas affected by Helene or threatened by Milton, may soon lack sufficient funds to cover claims, potentially necessitating borrowing from taxpayers.
In a letter to Congress, Biden cautioned that the Small Business Administration “will run out of funding in a few weeks” for issuing low-interest disaster loans for recovery purposes—something vital for homeowners and businesses alike.
Even a smaller disaster program administered by the Federal Highway Administration is confronting budget issues that could curtail its ability to repair federal roads damaged by the hurricanes.
The SBA’s disaster loan program disbursed $45 billion in loans—primarily to homeowners—from 2001 through 2022. A failure to provide loans for recovery after Helene and Milton would significantly hinder the recovery process and further strain FEMA's disaster fund by necessitating more emergency aid disbursements.
Additionally, FEMA is under immediate pressure to save lives in regions affected by the storms. The agency’s Daily Operations Briefing published Monday indicated that its Urban Search and Rescue operations are currently "not mission capable" with only four teams available.
More than 200 counties, impacting 31 million individuals across six states, have been declared federal disasters due to Helene or Milton. Helene has resulted in a death toll of at least 230 after wreaking havoc on Florida’s Gulf Coast, impacting areas such as Georgia, North Carolina, and Tennessee.
Milton threatens to pose an even graver risk with its trajectory aiming directly at Tampa Bay, identified as one of the most susceptible U.S. locales for storm surge. This region of over 3 million residents has not experienced a major hurricane strike since 1921, and experts warn that a direct hit could lead to losses in the hundreds of billions of dollars.
National Weather Service Director Ken Graham described the potential devastation of Hurricane Milton as “not a good situation.”
The recent warnings from Biden, Mayorkas, and experts regarding disaster funding starkly contrast with previous optimistic financial predictions prior to Milton's approach towards Florida.
During a press briefing Monday, a senior FEMA official sought to reassure the public about the agency's immediate capabilities, refraining from directly addressing the long-term funding concerns. “We are supporting the life-saving requirements that we have,” said Keith Turi, acting Associate Administrator for Response and Recovery at FEMA, in reference to Helene and Milton. “If there’s a point in which we need to take additional measures, … then we’ll take those measures when the time is appropriate.”
Turi noted that FEMA was relocating three search-and-rescue teams from California to assist in the Southeast and had enlisted support from the Coast Guard.
The precarious condition of federal disaster programs has led to mounting pressure on Congress to conclude its election-season recess ahead of schedule to approve additional aid.
Reiterating his position on Sunday, Johnson declined to summon the House back before its scheduled return on Nov. 12. “We will help people in these disaster-prone areas,” Johnson stated during an appearance on Fox News. “It’ll all happen in due time.”
The tripartite fiscal strain faced by federal disaster programs is unprecedented. While each of these programs has encountered budgetary constraints before, never has it occurred simultaneously.
This current financial shortfall arises from deep-rooted vulnerabilities in the programs combined with the escalating frequency and severity of disasters fueled by climate change and expansion. “The frequency and intensity of disasters continue to increase every year, and the number of federal disaster declarations continues to rise in parallel,” noted Carrie Speranza, president of the International Association of Emergency Managers.
Carlos Martín, director of the Remodeling Futures Program at the Harvard Joint Center for Housing Studies, remarked that FEMA is grappling with the task of funding both long-term recovery expenditures and immediate emergency costs. “When you're questioning that, and that becomes a question of whether the federal government will play the role that it has over the last 50 years, that’s a huge concern,” Martín warned.
In early August, FEMA's multibillion-dollar Disaster Relief Fund encountered difficulties as it neared depletion, resulting in the agency's restrictions that temporarily cut $9 billion in funding for rebuilding initiatives.
Although FEMA lifted these restrictions on Oct. 1 following a $20 billion allocation from Congress for the current fiscal year, the agency could quickly deplete this funding, necessitating a return to restrictions if lawmakers fail to provide additional resources.
Mayorkas cautioned last week that FEMA “does not have the funds to make it through the [hurricane] season,” which concludes on Nov. 30.
White House Press Secretary Karine Jean-Pierre echoed similar sentiments on Monday, asserting, “The FEMA disaster relief fund faces a shortfall at the end of the year.”
“The recovery from this is going to be very costly,” said Zimmerman, the former FEMA official, highlighting the high expenses associated with response efforts, particularly search-and-rescue operations.
FEMA's National Flood Insurance Program (NFIP) may also run short on funds due to foundational shortcomings established when Congress created the program in 1968, particularly the failure to require insurance premiums that adequately reflect a property’s flood risk. This has forced FEMA to borrow $20.5 billion from the U.S. Treasury following 2017 hurricanes Harvey, Irma, and Maria, leaving FEMA unable to repay this debt while only permitting an additional $10 billion in borrowing to settle insurance claims.
“I don’t think the NFIP needs to dig into its borrowing authority for Helene,” stated Sridhar Manyem, senior director of industry research at AM Best. "But Milton is another story. That could be a game-changer."
Hurricane Milton “could exhaust the NFIP and require the government to have to provide more funding for payments to be made to NFIP policyholders,” warned David Blades, associate director at AM Best.
FEMA indicated it has the capacity to cover $14.8 billion in NFIP claims “without seeking additional assistance from Congress.” The only disaster surpassing that figure was Hurricane Katrina, which concluded with claims payments over $16 billion while claiming more than 1,300 lives in New Orleans and nearby regions. Like Katrina, Milton has escalated to Category 5 intensity over the warm waters of the Gulf of Mexico and is anticipated to remain hazardous even if its winds ease slightly before landfall.
Jeremy Porter, leading climate implications research at the climate risk modeling firm First Street, offered a more optimistic outlook, predicting that Helene and Milton “are not likely to exhaust NFIP’s borrowing authority,” partly due to the limited number of national flood insurance policies among residents in the heavily impacted areas of Georgia and North Carolina.
Anne C. Mulkern and Mike Lee contributed to this report.
Alejandro Jose Martinez for TROIB News
