FEMA's Disaster Fund is Empty Amid Hurricane Season

As the hurricane season intensifies, the Federal Emergency Management Agency (FEMA) has announced that its Disaster Relief Fund (DRF) has run out of money. By law, FEMA is required to report on the status of the DRF by the fifth day of each month, with the latest report available on its website. The DRF is crucial for funding federal disaster support activities and assisting state, territorial, tribal, and local efforts, including emergency protection and debris removal. In light of the funding shortfall, FEMA will pause all new obligations related to public assistance, which includes reimbursements for completed disaster activities and permanent work, except for those deemed essential for lifesaving and life-sustaining operations. Congress allocated $20.261 billion for the DRF in the 2024 appropriations bill, but FEMA had previously projected that these funds would be insufficient to meet ongoing needs, prompting requests for additional funding. This marks the second consecutive year that FEMA has faced a funding crisis. Recent federal disaster declarations have been made in five states—Florida, Georgia, North Carolina, South Carolina, and Vermont—following Hurricane Debby, leading to taxpayer relief measures from the IRS. The National Oceanic and Atmospheric Administration (NOAA) has predicted an above-normal hurricane season, with expectations of 8-13 hurricanes, including 4-7 major hurricanes. A FEMA spokesperson emphasized the agency's commitment to ensuring resources are available for lifesaving activities, stating that the current funding pause will help prioritize ongoing disaster needs and enable immediate responses to new emergencies. FEMA employs over 20,000 personnel nationwide to support these efforts.