What the 2026 FEMA reform proposal would change
The future of the Federal Emergency Management Agency (FEMA) is full of uncertainty as a major Administration proposal would decentralize disaster response, shift primary responsibility to state and local governments, and make significant cuts to the agency’s workforce. Key changes focus on streamlining aid, reducing duplicative environmental reviews, and implementing long-term, technology-driven resilience strategies through 2050.
Why the report matters for federal disaster policy
The recommendations of the Final Report: The President’s Council to Assess the Federal Emergency Agency (May 7, 2026) aim to strengthen FEMA as a “force multiplier” rather than a first responder. If implemented, the changes would result in the most significant restructuring of federal disaster assistance since the creation of FEMA in 1979. Critically, the Council itself expressed a preference for legislative action, stating that “the Council advocates for legislative action to ensure a systemic and sustained transformation of the current approach to disaster management.” Most of the recommendations in the report will require Congressional action, which, given the shortened legislative calendar and looming mid-term elections, will be difficult this year.
Key recommendations and findings
- State-Led Response: Recommends shifting leadership of disaster response/recovery to the state level.
- Funding Thresholds: Proposes increasing the damage threshold for public assistance by over 50%, which would have disqualified roughly 29% of previous disasters from federal funding.
- Reduced Bureaucracy: Aims to reduce administrative costs by capping administrative expenses, noting that up to twenty-five cents of every dollar are sometimes spent on administrative costs.
- Focus on Private Market: Recommends a strategic shift toward private market insurance for covering flood risk.
- Mission Focus: Argues for addressing “mission creep” and streamlining, rather than simply increasing staffing, to fix agency inefficiencies.
Implications for states, localities, and infrastructure resilience
Reactions to the recommendations have included concerns that the proposed changes would represent a significant transfer of responsibility – and cost – to states and localities. More specifically, state, and local governments would have to adapt to a much smaller federal on-the-ground presence in most disasters, higher thresholds to qualify for federal assistance, and greater expectations around local capability and resource management. The report’s recommendations would preserve certain critical federal capabilities, including Urban Search and Rescue task forces, the National Disaster Medical System, the Integrated Public Alert & Warning System (IPAWS), and retaining the Emergency Management Performance Grant with a potential one-time funding increase to help support the transition to the new framework it proposes. Smaller, rural, and under-resourced communities would face the greatest risk if state governments do not adequately fill the gaps created by a reduced federal role.
Congressional response and political outlook
Congressional reaction to the report has been deeply divided along partisan lines, with Republican leaders aligning with the administration’s proposed overhaul toward state-led disaster response, while Democrats strongly criticize the recommendations as dangerous, calling them “reckless” and an effort to further reduce the size of the federal work force.
What this means for the future of resilience policy
The report lands at a unique moment in FEMA’s history, when there is now broad agreement that the agency is past due for an overhaul. The bipartisan Fixing Emergency Management for Americans Act of 2025 (H.R. 4669), known as the “FEMA Act,” cleared the House Transportation and Infrastructure Committee (T&I Committee) in September 2025 and provides the natural legislative vehicle to carry many of the Council’s recommendations into law. It includes many, but by no means all, of the report’s recommendations. ASCE has endorsed H.R. 4669 and supports its measured reforms of FEMA while maintaining its focus of resilience. As FEMA reform moves, ASCE will continue to work with Congress to advocate for continued focus on resilience, support for building codes, and other ASCE priorities.