Although the Federal Emergency Management Agency told Congress last month that it had $4 billion in its Disaster Relief Fund, officials also warned that the fund could have a shortfall of $6 billion by year’s end, a situation FEMA says could deteriorate in the aftermath of Hurricane Helene.
While FEMA is expected to ask Congress for new money, budget experts note a surprising fact: FEMA is currently sitting on untapped reserves appropriated for past disasters stretching back decades.
An August report from the Department of Homeland Security’s Office of Inspector General noted that in 2022, FEMA “estimated that 847 disaster declarations with approximately $73 billion in unliquidated funds remained open.”
Drilling down on that data, the OIG found that $8.3 billion of that total was for disasters declared in 2012 or earlier.
Such developments are part of…
