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New FEMA Chief Announces Shift in Disaster Costs as Agency Faces Readiness Concerns

David Richardson, recently appointed to lead FEMA, plans to increase states' cost share to 50% while internal reports warn the agency is unprepared for the 2025 hurricane season.

David Richardson, FEMA's acting administrator
Clean up continues inside the fire station after flooding on Wednesday, May 14, 2025 in Westernport, Md. (AP Photo/Gene J. Puskar)
Workers, community members, and business owners clean up debris in the aftermath of Hurricane Helene in Marshall, N.C., on Sept. 30, 2024.

Overview

  • FEMA's new head, David Richardson, has proposed raising states' cost share for disaster response from 25% to 50%, signaling a major shift in federal disaster funding policy.
  • An internal FEMA review warns the agency is not ready for the upcoming hurricane season, citing unclear plans, resource allocation issues, and staff shortages.
  • Roughly 30% of FEMA's permanent workforce has left due to budget cuts and discussions of eliminating the agency, resulting in low morale and operational challenges.
  • Richardson replaced Cameron Hamilton as FEMA's leader last week after Hamilton opposed the administration's potential plans to dismantle the agency.
  • NOAA is also facing staffing shortages, with 155 workers being reassigned to critical forecasting roles in hurricane-prone states, further straining disaster preparedness efforts.