Project 25 "watchers" estimate that 80% of the Heritage Foundation goals have been met. Here is the heart of Project 25's mission to reform (deform) FEMA.

FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)

Needed Reforms

FEMA is the lead federal agency in preparing for and responding to disasters,

but it is overtasked, overcompensates for the lack of state and local preparedness

and response, and is regularly in deep debt. After passage of the 1988 Stafford Act,12

the number of declared federal disasters rose dramatically as most disaster costs

were shifted from states and local governments to the federal government. In

addition, state-friendly FEMA regulations, such as a “per capita indicator,” failed

to maintain the pace of inflation and made it easy to meet disaster declaration

thresholds. This combination has left FEMA unprepared in both readiness and

funding for the truly catastrophic disasters in which its services are most needed.

Reform of FEMA requires a greater emphasis on federalism and state and local

preparedness, leaving FEMA to focus on large, widespread disasters.

Under the Stafford Act, FEMA has the authority to adjust the per capita indicator for damages, which creates a threshold under which states and localities are

not eligible for public assistance. FEMA should raise the threshold because the per

capita indicator has not kept pace with inflation, and this over time has effectively

lowered the threshold for public assistance and caused FEMA’s resources to be

stretched perilously thin. Alternatively, applying a deductible could accomplish

a similar outcome while also incentivizing states to take a more proactive role in

their own preparedness and response capabilities. In addition, Congress should

change the cost-share arrangement so that the federal government covers 25 percent of the costs for small disasters with the cost share reaching a maximum of 75

percent for truly catastrophic disasters.

FEMA is also responsible for the National Flood Insurance Program (NFIP),

nearly all of which is issued by the federal government. Washington provides

insurance at prices lower than the actuarially fair rate, thereby subsidizing flood

insurance. Then, when flood costs exceed NFIP’s revenue, FEMA seeks taxpayer-funded bailouts. Current NFIP debt is $20.5 billion, and in 2017, Congress

canceled $16 billion in debt when FEMA reached its borrowing authority limit.

These subsidies and bailouts only encourage more development in flood zones,

increasing the potential losses to both NFIP and the taxpayer. The NFIP should

be wound down and replaced with private insurance starting with the least risky

areas currently identified by the program.

Budget Issues

FEMA manages all grants for DHS, and these grants have become pork for states,

localities, and special-interest groups. Since 2002, DHS/FEMA have provided

more than $56 billion in preparedness grants for state, local, tribal, and territorial

governments. For FY 2023, President Biden requested more than $3.5 billion for

federal assistance grants.13 Funds provided under these programs do not provide

measurable gains for preparedness or resiliency. Rather, more than any objective

needs, political interests appear to direct the flow of nondisaster funds.

The principles of federalism should be upheld; these indicate that states better

understand their unique needs and should bear the costs of their particularized

programs. FEMA employees in Washington, D.C., should not determine how billions of federal tax dollars should be awarded to train local law enforcement officers

in Texas, harden cybersecurity infrastructure in Utah, or supplement migrant

shelters in Arizona. DHS should not be in the business of handing out federal tax

dollars: These grants should be terminated. Accomplishing this, however, will

require action by Members of Congress who repeatedly vote to fund grants for

political reasons. The transition should focus on building resilience and return

on investment in line with real threats.

Personnel

FEMA currently has four Senate-confirmed positions. Only the Administrator

should be confirmed by the Senate; other political leadership need not be confirmed by the Senate. Additionally, FEMA’s “springing Cabinet position” should be

eliminated, as this creates significant unnecessary challenges to the functioning of

the whole of DHS at points in time when coordinated responses are most needed.

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