FEMA's disaster relief fund hits red zone ahead of hurricane season [View all]
Source: CBS News
Updated on: April 29, 2026 / 12:30 PM EDT
Washington — With hurricane season just weeks away, FEMA has officially entered a financial danger zone — forcing the agency to limit spending to only the most urgent, life-saving needs amid the partial government shutdown.
The move, known as Imminent Needs Funding, is triggered when FEMA's Disaster Relief Fund drops below $3 billion. And the timing couldn't be worse. "Disasters are unpredictable. They're very costly. We don't know what could happen between now and June 1," said FEMA Associate Administrator Victoria Barton.
FEMA hasn't stopped working outright, but the disaster agency must now sharply narrow how it spends federal disaster dollars — prioritizing immediate emergency response, direct aid to survivors and critical infrastructure protection, while delaying many reimbursements and longer-term recovery projects.
FEMA's funding strain also impacts the pay of its own essential workers. Roughly 10,000 staff — including permanent employees and disaster-response personnel hired under the Stafford Act — are paid out of the Disaster Relief Fund, even during a government shutdown. Those payroll costs alone run between $300 million to $400 million per month, according to congressional and agency budget estimates, which makes staffing costs one of the largest ongoing draws on the fund, even as FEMA shifts into its red zone.
Read more: https://www.cbsnews.com/news/fema-disaster-relief-fund-hurricane-season/
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