FEMA is quickly using up its budget for disaster relief, with nearly half of the allocated funds for the next 12 months already spent by the federal government. The spending is expected to increase as aid is sent to states affected by Hurricanes Helene and Milton. This rapid depletion of funds may lead FEMA to restrict spending unless additional funding is approved by Congress.
FEMA Administrator Deanne Criswell mentioned during a news briefing that the Disaster Relief Fund is running out of money quickly. This could result in cutting off funding for rebuilding projects related to disasters across the country, focusing only on life-saving operations during emergencies. Major repairs to infrastructure like roads, sewer plants, and water-treatment facilities might be halted if spending restrictions are imposed.
As of Tuesday, FEMA had already used $9 billion out of the $20 billion provided by Congress for the fiscal year ending in September 2025. This is the first time FEMA has publicly disclosed the amount of money spent since Hurricane Helene hit the Southeast two weeks ago. President Joe Biden has been requesting additional FEMA funding since last October, but Congress has not approved the request.
House Democrats, led by Rep. Marcy Kaptur, are urging Speaker Mike Johnson to reconvene the House and pass robust disaster relief spending. The funding is crucial for both FEMA and the Small Business Administration (SBA) program that offers low-interest loans to individuals and businesses affected by disasters. SBA Administrator Isabel Casillas Guzman mentioned that the program’s funding might run out before the end of October, impacting the agency’s ability to process loan applications.
The absence of SBA loans could lead to more people seeking FEMA emergency aid, further draining the disaster funds. FEMA typically covers 75 percent of rebuilding costs, while states are responsible for the remaining 25 percent. The spending restrictions imposed by FEMA in the past have affected community financial health and resilience by delaying long-term repairs.
If spending restrictions are implemented in December or earlier, it would be the earliest time of the year that FEMA has taken such action. This could delay rebuilding projects for months, as seen in previous instances when FEMA had to halt funding for rebuilding projects. The recent lift of spending restrictions by Congress at the beginning of October has contributed to the accelerated use of funds by FEMA.
Despite the challenges, Criswell assured that FEMA would continue to support all those impacted by Hurricanes Helene and Milton. The agency is committed to providing assistance during emergencies and ensuring that life-saving operations are carried out effectively. The situation highlights the importance of timely and adequate funding for disaster relief efforts to support communities in need.