Plus, Florida’s big FEMA windfall
Panelists testifying on FEMA’s future before Congress, July 15, 2026.
The future of FEMA was the subject of a hearing by the U.S. House Committee on Transportation and Infrastructure late last week titled “Reforming FEMA: Ensuring the Nation’s Disaster Readiness Works for Americans.” The hearing included insurance perspectives on the FEMA Review Council’s long-delayed May Report, and voiced bipartisan support for the FEMA Act of 2026 (H.R. 4669), which passed with flying colors 57-3 back in September of 2025. The witness panel was made up of big industry names, such as Craig Fugate, former FEMA Administrator, and Brian Waller, representing the National Association of Mutual Insurance Companies.
Committee members echoed many of ideas we are repeatedly hearing regarding a new disaster management framework: not eliminating FEMA, but rather shifting to a state-led, locally executed, and federally supported system. Witnesses also made the case against the current reimbursement-based recovery model, which they cited as a large driver of costs and delay in project completion. Instead, they championed project-based grants to have upfront cash injections, offering better flexibility and project completion timelines.
Former FEMA Administrator Craig Fugate testifies before the the U.S. House Committee on Transportation and Infrastructure, July 15, 2026
“An earthquake takes seconds, paperwork takes decades,” said Fugate, a former Florida emergency management chief, resulting in communities bearing the financial burden of waiting years for federal reimbursements. Fugate was also critical of where the money is too often spent as well – rebuilding infrastructure exactly the same as it was before, rather than building back better to handle future risk.
Another point of discussion at the hearing was insurance affordability, an issue very prevalent for us here in Florida. Members and witnesses alike cited concerns over a growing underinsurance crisis, and how important mitigation investments and disaster policy can stabilize some of these insurance markets. This reality is underpinned by an increasing frequency and severity of disasters, which we have seen following the devastation of storms like Hurricanes Milton and Helene. Bigger and badder disasters necessitate strong policy decisions and even stronger infrastructure to withstand nature’s onslaught.
The beachside devastation of Mexico Beach, FL from Hurricane Michael, October 2018. Courtesy NOAA
Florida’s FEMA Windfall: While FEMA’s future is still being worked out, the funding it gives to states and communities is flowing full speed. After the $371 million in post-disaster grants to Florida we reported on in our last newsletter, another $124 million has been pledged to support 70 disaster recovery and hazard mitigation projects statewide. FEMA now says it’s provided more than $1.2 billion to Florida in the last 90 days.
In a surprise move, FEMA also reports that President Trump has increased the federal cost chare for Public Assistance from 75% to 90% of the total eligible costs for recovery efforts relating to 2018’s Hurricane Michael. Assistance previously approved at 100% will remain. This is good news for Bay County and surrounding areas that in many places, are still in the recovery phase.
LMA Newsletter of 7-20-26
