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Climate & Disasters · Report · File No. 261112-854

FEMA chief tells states to build reserves and expect less federal disaster help

FEMA's administrator told state emergency managers on Oct. 20 to prepare to handle most disasters without federal help, and said changes could start within six months. Older residents in flood- and storm-prone areas could face slower aid and higher local costs.

By the National Desk · · 3 min read

Every quote in this story (2) was matched word for word against its source. How we work

My clippings
Cameron Hamilton
Cameron Hamilton. Photo: Federal Emergency Management Agency, Public domain

The head of the Federal Emergency Management Agency (FEMA) has told states to get ready for a smaller federal role when disasters strike. Administrator Cameron Hamilton spoke to state officials on Oct. 20 at the National Emergency Management Association's annual conference in Little Rock, Arkansas. POLITICO obtained a recording of his remarks from someone at the private event 1.

Hamilton said states must increase their financial reserves and emergency capabilities to handle most disasters without federal help. He said changes could begin "in the next six months." 13

What Hamilton said

Hamilton said states need money set aside so recovery can start without waiting on the federal disaster declaration process 1. He argued that states that skip federal aid could start cleanup and repairs "much faster," because FEMA applications and decisions can take weeks or months 1.

Cameron Hamilton
Every state must have the appropriate financial reserves
Cameron Hamilton, FEMA Administrator, Trump administration1

He also said the administration plans a "national mutual aid" system, in which states help each other after storms, floods and wildfires. FEMA will also seek to waive federal environmental and historic preservation reviews for rebuilding projects, he said 1.

From Channel GOPGreg Abbott concedes Texas governor race to HinojosaGreg Abbott · 184 plays · captioned, with the source named

The talk followed an Oct. 15 internal FEMA memo, reported by POLITICO, saying the agency will "strengthen state and local capacity." 1 The administration has not publicly announced formal policy changes. It has continued to approve disaster aid for weather events 1. FEMA did not respond to POLITICO's request for comment 1.

The money at stake

FEMA generally pays at least 75% of eligible Public Assistance costs, which cover repairs to roads, bridges and public buildings. A review council appointed by President Trump has proposed starting the federal share at 50%. It would rise to 75% based on state performance 2.

On $100 million in eligible costs, states and localities would pay $50 million instead of $25 million. The proposal is not final and may need an act of Congress. It does not apply to Individual Assistance, the aid that goes to households 2.

A FEMA report released the Friday before Hamilton's remarks found that state disaster agencies "are typically understaffed and underfunded," and that many depend heavily on federal money 1. A 2025 Urban Institute analysis found only five of 31 states receiving federal disaster aid had reserves large enough to cover projected shortfalls under an earlier FEMA funding-cut proposal 2.

Reaction

Dan Koh, a former Biden White House official who coordinated federal disaster responses, criticized the idea. He pointed out that Hurricane Katrina caused roughly $108 billion in damage, about six times Louisiana's 2005 operating budget 3.

States don't have the budget for this.
Dan Koh, former Biden White House official who coordinated federal disaster responses3

Eric Holdeman, a former emergency management director in King County, Washington, wrote that states with tiny emergency offices and thin rainy-day funds cannot absorb lost federal money without raising taxes 1.

What happens next

Hamilton said changes could start within six months 1. Several of the review council's ideas would need Congress to act 4. Texas Gov. Greg Abbott's office is weighing an appeal of FEMA's denial of household aid for the July Kerr County floods 2.

That matters because older residents are often the ones most dependent on quick help after a flood or storm. If states must pay a bigger share, the bill could land on local budgets. That is analysis, not a finding in the reports. The reports do show that many state agencies are short on staff and money 12.

The Record

  1. An internal FEMA memo says the agency will "strengthen state and local capacity." 1
  2. FEMA Administrator Cameron Hamilton tells state emergency managers in Little Rock to build reserves and prepare for fewer federal disaster declarations. 1
  3. Hearst Television reports that a Trump-appointed council's proposal to start the federal cost share at 50% is not final and may need Congress. 2
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Sources

  1. POLITICO (via Yahoo News), “FEMA tells states to handle disasters on their own” (2026-10-20). yahoo.com/news/us/articles/exclusive-fema-chief-tells-states
  2. WCVB (Hearst Television), “FEMA wants states to shoulder more disaster costs. Can they afford it?” (2026-10-22). wcvb.com/article/fema-more-disaster-costs-can-they-afford-it
  3. Common Dreams, “Trump's FEMA Head Tells States to Prepare to Handle Disasters on Their Own” (2026-10-21). commondreams.org/news/trump-fema-states
  4. Conduit Street (Maryland Association of Counties), “FEMA Tells States To Go It Alone” (2026-10-21). conduitstreet.mdcounties.org/2026/10/21/fema-tells-states-to

Found an error? Tell the newsroom. Corrections are noted at the top of the story.

More from the files

Climate

FEMA chief tells states to build their own disaster reserves as federal help shrinks

FEMA Administrator Cameron Hamilton told state emergency managers that changes to federal disaster aid could begin within six months, and that states should be able to handle most disasters without Washington. Texas flood victims are already recovering without FEMA's direct aid to households, and Democrats say families will pay the price.

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