The Federal Emergency Management Agency (FEMA) has been the subject of numerous reports citing shortcomings in response timeliness, staffing adequacy, and funding certainty. The U.S. Government Accountability Office (GAO) recently issued a report detailing FEMA’s limitations,1 and a January White House executive order intends to address the agency’s deficiencies.2 Persistent uncertainty surrounding the federal government’s role in disaster recovery will impose burdens on state and local issuers and have significant implications for the insurance industry.
Key Takeaways
- While examination of FEMA’s role and responsibilities remains under consideration by Congress and the Trump Administration, states and localities are likely to be expected to assume a greater share of disaster recovery costs, and there is no certainty that future funding would match current levels of federal support.
- Contemplated…