July 21, 2026 — The Federal Emergency Management Agency (FEMA) has long faced scrutiny over the effectiveness of its disaster response, fueling ongoing efforts by both Congress and the White House to modernize the agency. Frustration over bureaucratic delays, complicated grant requirements, slow reimbursement processes, and an administrative structure that seems to hinder rather than aid recovery has led to both Presidential and Congressional proposals to reform the agency.
Formation of FEMA Review Council
On January 24, 2025, the President established, via Executive Order, a Council to Assess the Federal Emergency Management Agency. This order assembled a 20-member task force, including leaders and experts in disaster relief. They were tasked with reporting on FEMA’s status and providing recommendations to overhaul the agency. The Final Report: The President’s Council to Assess the Federal Emergency Management Agency was released on May 7, 2026, and outlines 10 recommendations that could significantly alter how the federal government responds to, recovers from, and mitigates disasters.
Review Council’s Recommended Changes
If the reforms in the Final Report are implemented, a larger share of disaster response would fall on state and local governments. Local governments may receive reduced direct federal support during various disasters and face stricter requirements for federal assistance. Ultimately, they will be expected to manage more of the planning, resources, and emergency response independently.
At the same time, the Final Report preserves several important federal programs that local governments rely upon, including Urban Search and Rescue teams, the National Disaster Medical System, the Integrated Public Alert and Warning System (IPAWS), and Emergency Management Performance Grants. The Review Council on FEMA also recommends consideration of a one-time funding increase to help facilitate the transition from federal to state and locally managed disaster mitigation.
The Final Report would also replace the Public Assistance program with the Reformed and Partnered Initiative for Disasters (RAPID) block grant, shifting the approach from a seven-phase reimbursement system to direct funding. Within 30 days of a presidential disaster declaration, funds would be sent to states based on preset parametric criteria, such as wind speed or flood depth, rather than requiring time-consuming damage assessments.
Other key recommendations from The Final Report include:
● Raising the thresholds for major disaster declarations, including updated per capita indicators and new minimum state expenditure requirements, before a declaration can be requested.
● Shifting responsibility for emergency shelter to states and territories, with local governments expected to manage the immediate disaster response and shelter operations.
● Reforming the National Flood Insurance Program by gradually shifting it toward private markets, updating risk-based pricing, modernizing flood maps, and establishing a voluntary policy transfer program.
● Transforming FEMA into a leaner agency with a smaller headquarters and a formal “payer of last resort” role, meaning other federal programs must be exhausted first.
The Fixing Emergency Management for Americans Act (FEMA Act)
On September 3, 2025, the House Committee on Transportation and Infrastructure passed the FEMA Act (H.R. 4669) by a vote of 57-3, indicating strong bipartisan support. The legislation proposes establishing FEMA as an independent, cabinet-level agency. It aims to overhaul federal disaster aid by streamlining the application process for survivors and shifting the funding process to an expedited, grant-based model.
The FEMA Review Council’s Final Report and the FEMA Act share many objectives despite some structural differences. Both proposals seek to accelerate the delivery of disaster assistance by replacing or significantly streamlining FEMA’s lengthy reimbursement process with faster funding mechanisms that provide states with greater flexibility in managing recovery. They also promote performance-based cost-sharing, tying the federal cost share to states’ investments in hazard mitigation and resilience, with higher federal funding for states that take proactive measures and lower funding for those that do not. The proposals also include streamlining funding to minimize administrative delays, addressing FEMA’s longstanding disaster backlog, and transferring more responsibilities for environmental reviews to the states.
The FEMA Act largely preserves FEMA’s existing Public Assistance and Individual Assistance structures while seeking to accelerate funding delivery, streamline reimbursements, expand flexibility for states, and simplify debris removal and housing assistance processes. The FEMA Review Council’s final report proposes broader changes to the agency’s recovery programs than those outlined in the FEMA Act. For example, through the Council’s proposed RAPID program, funding will be released more promptly based on the type and severity of the disaster, eliminating the need for communities to submit applications and wait for financial assistance. By comparison, the FEMA Act would continue to rely on the current time-consuming system.
Legislative Outlook
In a July 15th hearing of the House Transportation and Infrastructure Committee, Chairman Graves stated, “Now that the FEMA Review Council’s recommendations have been released, we hope we can move forward with passing the FEMA Act.” It is eligible for consideration by the full House, but has not yet been placed on the legislative calendar. It must also secure passage in the United States Senate before becoming law.
Both the FEMA Act and the FEMA Review Council’s recommendations provide a useful indication of the direction federal policymakers may pursue to reform disaster response. Strategics will continue to monitor developments closely and assess how potential changes could affect emergency management operations, disaster recovery programs, funding structures, and administrative responsibilities.
About the Author
Vivian Vesuna is a Legislative Intern for Strategics Consulting, Centralina’s federal government relations consulting firm. For more information, visit www.strategics.consulting.
