Note from the Editor (5/8/25): It has been reported by E&E News that Cameron Hamilton, the acting administrator for FEMA, has been dismissed from his position.

CLIMATEWIRE | A bipartisan collection of House representatives is currently drafting a comprehensive bill aimed at restructuring the Federal Emergency Management Agency (FEMA). This initiative seeks to not only revamp the organization but in certain aspects, broaden its services. This legislative push is a proactive measure against President Donald Trump’s suggestions to scale back or even dissolve FEMA.

According to a detailed summary provided to POLITICO’s E&E News, the proposed legislation would allow FEMA to fund extensive repairs for homes affected by disasters, moving beyond the current scope of only providing temporary relief. Additionally, it introduces penalties for states that fail to take preventive measures against disasters.

Supporting Science Journalism

If you appreciate this article, please consider backing our award-winning journalism by subscribing. Your subscription helps secure the future of significant reporting on the crucial discoveries and concepts that shape our modern world.

Additionally, the bill proposes to extract FEMA from the Department of Homeland Security, setting it up as an independent entity that reports directly to the President. This bill, presently in the form of a discussion draft, was crafted by Sam Graves, the Republican Chair of the House Transportation and Infrastructure Committee from Missouri, alongside Rick Larsen, the leading Democrat on the panel from Washington.

The contents of the bill were revealed during a private online meeting with around 100 specialists, with E&E News in attendance.

The committee, with its bipartisan support, plans to publicly share the discussion draft soon.

“The administration has been exploring better ways to empower states to lead in disaster response,” stated Johanna Hardy, a Republican staff director for a subcommittee, during the meeting. She noted that the draft bill aims to support these objectives.

Elevating FEMA to a Cabinet-level agency would enhance its capacity to assist state and local governments, according to Hardy.

The bill may represent Congress’ major attempt at shaping the trajectory of FEMA, which Trump has been actively trying to diminish and potentially disband.

“The committee’s progress on this is quite encouraging,” stated Manann Donoghoe, a senior research associate at Brookings Metro, following the online discussion.

One of Trump’s cuts — the elimination of a multi-billion-dollar grant program aimed at helping states prepare for natural disasters — has faced strong criticism across political lines. Trump has also established an expert panel to suggest reforms for FEMA.

While explaining the bill to a House Appropriations subcommittee, Cameron Hamilton, the then-acting FEMA Administrator, argued against the dissolution of the agency.

“I don’t think it serves the American people well to get rid of the Federal Emergency Management Agency,” Hamilton asserted in response to a query from Rosa DeLauro, the senior Democrat on the House Appropriations Committee.

“However, I’m not the one making those decisions,” he added. “This is a discussion that needs to happen between the president and this legislative body.”

Earlier in the session, Hamilton mentioned that the administration was considering policies that would encourage greater state involvement in disaster recovery efforts.

Trump has been clear about his intent to downsize FEMA and shift more responsibilities for disaster recovery to the states.

Nevertheless, the House bill proposes an expansion of FEMA’s financial responsibilities in at least one area, based on a 2,500-word summary and insights from Transportation Committee staffers.

The legislation would eliminate current limitations that restrict FEMA to only funding minor home repairs post-disaster, introducing a “permanent repair program for owner-occupied homes,” the summary detailed.

“This would extend FEMA’s ability to repair homes beyond just making them livable,” explained Lauren Gros, a Democratic committee staffer, during the conference.

“We found out that FEMA was spending close to $300,000 on travel trailers for temporary housing,” Gros said. “Why invest so much in a temporary fix when a permanent solution is feasible?”

Under current regulations, FEMA usually provides households with just a few thousand dollars — enough to make a home habitable after a disaster. This policy has often left many without homeowners insurance in prolonged temporary housing.

The bill also advocates for FEMA to prioritize economically disadvantaged and rural areas when deciding to recommend disaster declarations to the president, who ultimately has the final say in declaring a major disaster, thus triggering federal aid for recovery.

Typically, FEMA covers 75 percent of disaster recovery costs, with states responsible for the remaining 25 percent. However, the new proposal introduces a sliding scale for cost-sharing that would allow FEMA to cover only 65 percent of the costs if a state is not adequately mitigating risks, explained Logan de La Barre-Hays, a Republican staffer on the committee, during the conference. States that show marked improvement in their disaster preparedness could see FEMA’s share increase to 85 percent.

The ultimate impact of the bill, should it become law, remains uncertain.

Presidents generally have broad discretion in disaster management, including the approval of federal aid and the determination of its extent.

Many of the 51 sections in the bill simply empower FEMA or the president to take specific actions.

According to Donoghoe from Brookings, the bill contains numerous promising ideas. He noted that along with Trump’s executive actions, the bill has brought disaster management reforms into the spotlight in a way that hasn’t been seen for some time.

Others who attended the online presentation suggested that it’s not just FEMA that needs an overhaul but the entire federal approach to handling major disasters, which involves multiple departments.

However, Donoghoe expressed concerns about what can realistically be achieved given the current legislative climate.

Reprinted from E&E News with permission from POLITICO, LLC. Copyright 2025. E&E News provides essential news for energy and environment professionals.