Federal Court Forces FEMA to Restart Billion-Dollar Disaster Preparedness Grants

The Federal Emergency Management Agency announced Wednesday it will restart applications for a billion-dollar disaster preparedness grant program, responding to a federal court mandate issued less than three weeks ago.

The agency is allocating $1 billion through the Building Resilient Infrastructure and Communities program, which provides funding to states, local governments, territories and tribal nations for projects designed to strengthen defenses against natural disasters including wildfires, flooding, earthquakes and hurricanes.

“When done correctly, mitigation activities save lives and reduce the cost of future disasters,” stated Karen S. Evans, FEMA’s acting leader, while announcing the program’s return.

The current administration has reduced funding for disaster preparedness across several FEMA initiatives. No state or tribal hazard mitigation funding requests have received presidential approval for an entire year, despite such approvals typically accompanying major disaster declarations.

However, a FEMA document describing the grant opportunity suggests the administration may now be supporting disaster mitigation efforts, noting that “BRIC aims to shift the focus of federal investments away from reactive post-disaster spending towards proactive infrastructure-focused hazard mitigation.”

This funding restoration follows FEMA’s decision last April under former acting leader Cameron Hamilton to terminate the BRIC program, which he labeled “wasteful and ineffective.” The cancellation sparked criticism from both Republican and Democratic legislators as approximately $3.6 billion in multi-year infrastructure and community protection projects nationwide were suspended.

U.S. District Judge Richard G. Stearns ruled in December that FEMA lacked authority to eliminate BRIC and mandated the agency reverse its decision after 22 Democratic-led states and the District of Columbia filed suit against the administration over the program’s termination. When the agency delayed releasing funds, Judge Stearns issued another order this month requiring FEMA to take action toward program restoration.

FEMA announced last week it would reinstate BRIC program support following the end of the DHS shutdown, stating it had completed its evaluation of the program originally enacted during Trump’s first presidency. The agency claimed that under former President Joe Biden, BRIC became overly bureaucratic and “focused on ‘climate change’ initiatives.”

States have 120 days to submit applications for the new funding cycle, which encompasses fiscal years 2024 and 2025, since last year’s opportunity was withdrawn.

Although the restored funding provides access to essential assistance for many regions, FEMA has implemented new regulations aligned with the Trump administration’s goal of transferring more disaster management responsibilities to states.

The updated regulations, which eliminate funding for hazard mitigation planning and non-financial direct technical assistance, may affect smaller communities with limited resources and expertise.

“The program now maximizes state and local responsibility for resilience and risk reduction rather than federal investing in a wide range of activities,” according to a FEMA statement.

The revised grants also establish limits on individual recipient awards and give priority to new applicants and “impoverished communities.” These modifications may address previous criticism that BRIC favored coastal states and was challenging for rural areas to access.

Other updates include prioritizing major infrastructure projects that “are ready to implement” and encouraging adoption of “the latest hazard-resistant building codes,” according to FEMA.

The timeline for resuming previously awarded grants remains uncertain.

The BRIC cancellation delayed construction of a flood barrier in his Washington district, according to Rep. Rick Larsen, a Democrat and ranking member of the House Transportation and Infrastructure Committee, who commented Wednesday. “Slowing states’ ability to prepare for disasters was shortsighted, and communities like Aberdeen paid the price,” Larsen stated.

Over the past decade, weather- and climate-related disasters causing $1 billion or more in damages have occurred nearly as frequently as they did in the previous 35 years combined, based on Climate Central data.

Research consistently demonstrates that advance investments in disaster preparedness generate substantial savings. A 2024 U.S. Chamber of Commerce-funded study determined that each $1 invested in disaster preparation prevented $13 in economic impact, damage and cleanup expenses.

Former FEMA officials, lawmakers and disaster survivors have expressed cautious optimism that newly confirmed Homeland Security Secretary Markwayne Mullin might provide greater stability to the agency following Kristi Noem’s controversial leadership period. During his Senate confirmation hearing last week, Mullin supported FEMA’s mission and endorsed initiatives to improve the agency’s effectiveness, accelerate payments to state and local jurisdictions, and better assist rural communities.