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What Happens If FEMA Goes Away?
CNBCยท2025-08-20 16:00

FEMA & Disaster Recovery Overview - FEMA budgeted over $60 billion for disaster recovery in fiscal year 2025 [3] - Hurricane Helene caused over $78 billion in damages [5] - The River Arts District generates $1.3 billion in revenue, highlighting its economic importance [10] - FEMA paid out $4.5 billion in grants for resilient infrastructure, but funding was cut in 2025 [27] Challenges & Criticisms of FEMA - FEMA is managing a backlog of over 600 open major disaster declarations [4] - The Trump administration considered eliminating FEMA due to perceived lack of urgency and strong bureaucracy [4][5] - Many disaster requests were denied in 2025, raising concerns about political bias and understaffing [13][14] - The federal government paid out approximately 6% of the $59.6 billion in damage caused by Hurricane Helene in North Carolina as of May 2025 [22] Potential Solutions & Future Considerations - The administration wants to closely vet spending, which may slow down FEMA's operations [19] - Disaster mitigation or resilience building has a payoff of anywhere from 6 to 1 to 11 to 1 [27] - The government pays a maximum of $42,500 for housing related costs and the same amount for other needs for the uninsured [9]