Sponsor
Clay Higgins
Representative · R-LA
Representative · R-LA
The bill shifts emergency coordination to a single White House decisionmaker and creates predictable, formulaic annual grants and mitigation funding—potentially improving planning and targeting for vulnerable areas—but it also centralizes power in ways that risk politicization, reduces near‑term grant dollars via Treasury reallocations and administrative reserves, and places conditions that could delay aid and undermine long‑term program certainty.
State and local governments would receive predictable, formula-based annual grants for preparedness, response, recovery, and mitigation—allowing regular funding for planning, training, equipment, and immediate readiness.
Communities in disaster-prone areas (rural and urban) could fund mitigation projects that reduce future damage and lower long‑term recovery costs.
Low-income states would get extra weight in allocations (via per‑capita income adjustments), directing more federal aid to economically vulnerable areas.
State and local governments, and disaster-affected communities could get less immediate recovery and preparedness funding because unobligated FEMA funds would be returned to the Treasury and up to 20% of program funding can be reserved for Treasury administration and audits.
Centralizing emergency authority in the White House shifts operational control away from FEMA's specialized agency staff and risks politicized or less expert operational and grant decisions, which could slow responses and undermine equitable distribution of aid.
States and localities could face delays or administrative strain: plans must be approved annually by April 1 to receive funds, a 5% cap on state administrative costs may squeeze small jurisdictions, and a prohibition on duplicate federal assistance could leave some needs unmet if coordination fails.
Based on analysis of 3 sections of legislative text.
Abolishes FEMA after two years, transfers its functions to the President, and creates a Treasury-run, formula-based annual grant program for states and territories for disaster preparedness, response, recovery, and mitigation.
Official title: To abolish FEMA and establish a block grant program for disaster relief, and for other purposes.
Introduced May 13, 2025 by Clay Higgins · Last progress May 13, 2025
Abolishes the Federal Emergency Management Agency (FEMA) two years after enactment, transfers FEMA functions to the President, and moves unused FEMA funds to the Treasury general fund for use under a new program. Creates a Treasury-run, formula-based annual grant program that pays states and U.S. territories for preparedness, response, recovery, and mitigation projects, subject to an approved annual state emergency plan and reporting, with program oversight, audits, and a scheduled termination four years after Treasury issues the allocation rule.