In a significant move, Congress has approved over $100 billion in emergency funding aimed at addressing the widespread damage caused by recent disasters, following intense negotiations over a government spending bill. This financial aid comes in the wake of two hurricanes, Helene and Milton, which wreaked havoc in the southeastern United States this fall. The legislation, signed into law by President Joe Biden on Saturday, ensures the federal government remains operational until March 14, while allocating funds that extend beyond just the impacts of these two storms.
President Biden remarked that the new legislation “delivers the urgently needed disaster relief that I requested for recovering communities,” which includes financial resources targeted for the rebuilding of the Francis Scott Key Bridge in Baltimore. This bridge collapsed earlier in the year after being struck by a wayward container ship which lost power and drifted off its course. While initial plans for disaster aid seemed optimistic, they faced setbacks when President-elect Donald Trump introduced new stipulations that derailed a compromise and threatened a federal shutdown right before the Christmas holiday. Ultimately, a streamlined version of the bill was pushed through as Republicans opted to withdraw Trump’s primary demands.
A breakdown of the disaster relief funds reveals how they will assist various communities. The Federal Emergency Management Agency (FEMA) is set to receive substantial support from this emergency funding. FEMA acts as the government’s financial instrument for disaster-related costs, covering expenses such as debris removal from hurricane-struck areas and overtime pay for emergency responders. The funds will also assist individual residents, providing up to $750 for disaster survivors and $42,500 for uninsured homeowners needing help with rebuilding their properties.
Esther Manheimer, the mayor of Asheville, North Carolina—an area heavily impacted by Hurricane Helene—expressed gratitude for the additional disaster relief funds. She noted that it has only been four weeks since the city’s residents could safely drink and use tap water. Many businesses in western North Carolina are either permanently closed or facing severe challenges, with over 200 roads still out of commission in the region. Reflecting on the long recovery ahead, Manheimer pointed out the lasting economic and employment effects that the hurricane has caused.
Prior to the recent funding, FEMA’s disaster relief fund was running low following the impacts of Hurricanes Helene and Milton, with FEMA Administrator Deanne Criswell warning that the fund had dwindled to just $5 billion. Although the Biden administration initially requested approximately $40 billion for disaster relief, the final bill allocated $29 billion. According to Stan Gimont, a senior advisor on community recovery, this funding is just a portion of what’s necessary, as Congress is likely to approve additional funds in future appropriations.
Aside from FEMA support, the bill includes around $21 billion aimed at assisting farmers affected by the disasters. North Carolina’s Agriculture Commissioner Steve Troxler acknowledged the aid but noted that many of the state’s unique crops, like sweet potatoes and Christmas trees, aren’t typically included in federal disaster programs. Hence, the state will need to analyze the details closely to understand what aid might be available. Additionally, the bill allocates $8 billion for the repair of damaged infrastructure, and approximately $12 billion will be funneled through HUD grants to aid community recovery, especially for homeowners lacking adequate insurance.
There are provisions for $2.2 billion allocated for low-interest loans to support businesses, nonprofits, and homeowners in rebuilding efforts. Importantly, the emergency funding is not solely confined to local residents; it also includes budget lines for military repairs due to hurricane damage, funding for research aircraft used in hurricane studies, and resources for NASA to rebuild facilities impacted by storms.
Furthermore, the disaster relief funding is not limited to losses from hurricanes Helene and Milton. Rather, the money is designated for various disasters, with specific allocations including $1.5 billion dedicated to recovery efforts following the severe Hermit’s Peak/Calf Canyon wildfire in New Mexico as well as funding for bridge reconstruction. Other covered disaster types in the legislation range from droughts and wildfires to floods, derechos, and smoke exposure.
The nature of disaster recovery often spans years, as noted by Gimont, who highlighted that while some funds are aimed at immediate recovery, they are also preparing for future events. He referenced the devastating Maui fire from the previous year, which had a long cleanup process extending into the summer of 2024.