Policy Backgrounders

Federal Disaster Relief Funding After Helene and Milton

October 18, 2024

Key Insights

After the devastation caused by Hurricanes Helene and Milton, the Federal Emergency Management Agency (FEMA) and other Federal agencies have taken the lead in providing disaster relief to affected states in the Southeast. Lawmakers and impacted constituents have raised concerns about the availability of funding to respond to these natural disasters, with the Small Business Administration (SBA) reporting it has run out of funding for disaster loans for small businesses and FEMA quickly spending down its Fiscal Year (FY) 2025 appropriation. A disaster supplemental funding bill during the lame duck session after the November election is likely as Congress and the Administration assess the extent of the damage from the hurricanes and other recent natural disasters.

• FEMA is the lead agency responsible for responding to natural disasters and assisting communities with their recovery efforts, with the SBA providing low-interest disaster loans to small businesses affected by natural disasters.
• FEMA has already spent $9 billion of its $20 billion appropriation for disaster relief, though the government is confident there are sufficient funds to respond to Hurricanes Helene and Milton.
• However, the SBA’s disaster loan program has run out of money, and FEMA may also have to take emergency measures to reprioritize funding and pause other reconstruction projects as early as December given the extensive past and current recovery needs across the country.
• Lawmakers from affected states are pushing for timely consideration in Congress of additional funding for FEMA and the SBA, though any action on a supplemental funding package for disaster aid will likely wait until Congress returns from its recess on November 12.