FEMA’s Disaster Relief Fund is running out of money. What’s to blame?

Aug 26

Lauren Taylor Anchor

By Lauren Taylor (Anchor), Evan Hummel (Producer), Jake Maslo (Video Editor)

America’s disaster emergency response agency has some bad news, and it comes right in the middle of hurricane season in the U.S. The United States Federal Emergency Management Agency (FEMA) Disaster Relief Fund is running out of money for the second straight year as reported on Sunday, Aug. 25.

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The agency said that it has been forced to put at least 650 projects across the country on hold because of a lack of money and to ensure that enough resources are available to respond to natural disasters.

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When the agency will get more money depends on when Congress approves the funding. However, it will not be this month, as lawmakers are not set to return from August recess until Sept. 9.

The funding shortfall also comes as wildfires and floods occur on a regular basis. In Santa Cruz, California, officials said that they’ve been hit by seven federally declared disasters since 2017. The county said that until federal funds come through, it would not be able to address 150 repair projects that are currently on hold.

“The cash flow issue for our county has been severe,” Santa Cruz Administrative Officer Carlos Palacios said in an interview. “Now, that I hear that FEMA is basically freezing any new expenditures, it’s really devastating to our efforts to recover.”

FEMA blamed part of the problem on underestimating COVID-19 pandemic-related costs, which still have the agency reimbursing communities. The agency said that the pandemic strained resources already stretched thin by more frequent climate change-fueled natural disasters and warns funding will continue to be a problem until reforms are made by lawmakers.

The agency said that it shifted its priorities at least nine times since 2001 due to budget shortfalls. Meanwhile, agency watchdogs say part of the problem is that projects and disaster responses remain open for too long, some reportedly for decades. They recommend streamlining projects to get funds out faster.

Tags: California, Extreme weather, FEMA, hurricane, National Hurricane Center, National Weather Service, natural disaster, Severe Weather

[LAUREN TAYLOR]

AMERICA’S DISASTER EMERGENCY RESPONSE AGENCY HAS SOME BAD NEWS — AND IT COMES AS WE ARE IN THE MIDDLE OF HURRICANE SEASON: FEMA IS RUNNING OUT OF MONEY.

FOR THE SECOND STRAIGHT YEAR, THE AGENCY’S DISASTER RELIEF IS GOING TO BE SHORT ON FUNDS.

NOW AT LEAST 650 PROJECTS ARE REPORTEDLY ON HOLD ACROSS THE COUNTRY TO ENSURE ENOUGH RESOURCES ARE AVAILABLE FOR NATURAL DISASTERS.

WHEN THE AGENCY WILL GET MORE MONEY, ALL DEPENDS ON WHEN CONGRESS APPROVES IT.

IT WON’T BE THIS MONTH– AS LAWMAKERS AREN’T SET TO RETURN FROM AUGUST RECESS UNTIL SEPTEMBER 9TH.

THE FUNDING SHORTFALL ALSO COMES AS WILDFIRES AND FLOODS POP-UP ON A REGULAR BASIS.

SANTA CRUZ, CALIFORNIA OFFICIALS SAY THEY’VE BEEN HIT BY SEVEN FEDERALLY DECLARED DISASTERS SINCE 2017.

THE COUNTY SAYS UNTIL THE FEDERAL FUNDS COME THROUGH, THEY WON’T BE ABLE TO ADDRESS 150 REPAIR PROJECTS ON HOLD.

HEARST NEWS TALKED WITH SANTA CRUZ COUNTY ADMINISTRATIVE OFFICER CARLOS PALACIOS ABOUT THE IMPACT.

[CARLOS PALACIOS]

THE CASH FLOW ISSUE FOR OUR COUNTY HAS BEEN SEVERE.

NOW THAT I HEAR THAT FEMA IS BASICALLY FREEZING ANY NEW EXPENDITURES… IT’S REALLY DEVASTATING TO OUR EFFORTS TO CONTINUE TO RECOVER.”

[LAUREN TAYLOR]

FEMA BLAMES PART OF THE PROBLEM ON UNDERESTIMATING COVID-19 RELATED COSTS– WHICH STILL HAVE THE AGENCY REIMBURSING COMMUNITIES.

THE AGENCY SAYS THE PANDEMIC STRAINED RESOURCES ALREADY STRETCHED THIN BY MORE FREQUENT NATURAL DISASTERS AND WARNS FUNDING WILL CONTINUE TO BE A PROBLEM UNTIL REFORMS ARE MADE.

THE AGENCY SAID IT’S SHIFTED ITS PRIORITIES AT LEAST NINE TIMES SINCE 2001 DUE TO BUDGET SHORTFALLS.

AGENCY WATCH DOGS SAY PART OF THE PROBLEM IS PROJECTS AND DISASTER RESPONSES REMAIN OPEN FOR TOO LONG– SOME FOR DECADES.

THEY RECOMMEND STREAMLINING PROJECTS TO GET FUNDS OUT FASTER.

FOR MORE UPDATES ON FEMA FUNDING– DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN-DOT-COM.

FOR STRAIGHT ARROW NEWS– I’M LAUREN TAYLOR.