Shifting More Costs to the States

This proposal has been covered before, but the recent WV disaster brings it to the front burner. See: FEMA Looks to Shift More Disaster Costs to States. Some details from the WSJ article:

Last month, President Barack Obama declared a federal disaster in eight West Virginia counties after flooding killed 23 people, and more than 3,700 people have signed up for housing and other assistance from the Federal Emergency Management Agency.

The agency has so far approved $30.3 million in aid to individuals, and the federal government’s disaster tab will increase significantly once aid to local governments to help rebuild roads and bridges is factored in.

It is this ballooning spending on disasters such as hurricanes, floods and wildfires that has some members of Congress calling for FEMA to look for ways to tighten its belt, while still covering essential disaster-mitigation and recovery costs. In response, FEMA is proposing that states pay a still-undetermined amount—similar to an insurance deductible—before receiving federal disaster aid ….

2 thoughts on “Shifting More Costs to the States

  1. In principle, a good idea; in practice, how do you do this equitably? And, of course, if the federal government would begin to actually budget for disasters…

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