Bipartisan Draft Bill Proposes Major Overhaul of FEMA

ASFPM welcomes opportunity for discussion on how agency can be reformed

Congressional leaders unveiled bi-partisan draft legislation today aimed at overhauling FEMA and streamlining the nation’s disaster response programs. The proposal, introduced by House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) and Ranking Member Rick Larsen (D-WA), would mark the most sweeping FEMA reform effort since Hurricane Katrina.

The “Fixing Emergency Management for Americans (FEMA) Act of 2025” proposes moving FEMA out of the Department of Homeland Security and returning it to cabinet-level status with more direct authority under the president. Among its goals, the bill aims to simplify assistance programs so as to speed relief to disaster survivors and incentivize states to make their own investments in mitigation. The lawmakers are circulating the bill as a “discussion draft” to gather feedback from Congress, state and local emergency managers, and other stakeholders.

In a joint announcement, Graves and Larsen emphasized the need to reduce red tape, reward state-level preparedness, and make FEMA more accountable and responsive to communities impacted by disasters.

ASFPM, which yesterday participated in a stakeholder call led by Transportation and Infrastructure Committee staff, is reviewing the bill and will share feedback in the coming weeks. ASFPM has long advocated for strengthening FEMA to improve efficiency of disaster response and recovery, increase investment in risk identification and mapping, adopt higher basic codes and standards to avoid or reduce flood losses, and expand hazard mitigation. Additionally, over the years, ASFPM has been a leading advocate for building state and local capacity. 

“We welcome this opportunity to engage in a productive conversation about the agency’s future, and do not have reservations about states and communities taking on additional responsibilities provided it is done sensibly and practically,” said ASFPM’s Executive Director Chad Berginnis. “It is only through a true local, state, and federal partnership that we can reduce flood losses in the nation in a meaningful way.” 

While Wednesday’s stakeholder meeting was being held, Cameron Hamilton, FEMA’s acting administrator, was testifying before the House Appropriations Subcommittee on Homeland Security. During the hearing Hamilton said that FEMA should not be abolished.

“I do not believe it is in the best interests of the American people to eliminate the Federal Emergency Management Agency,” Hamilton said in response to a question. “Having said that, I’m not in a position to make a decision. That is a conversation that should be had between the president of the United States and this governing body.”

Hamilton was fired less than 24 hours later.

The committee’s announcement included a summary of the FEMA Act of 2025, which we’ve pasted below, or you can read the full text of the draft discussion bill here. 

Summary of the FEMA Act of 2025

The FEMA Act of 2025 restores FEMA’s original status as an independent agency, reporting directly to the President and overseen by its own Inspector General.

•  This structure mirrors the Stafford Act, which authorizes the President to direct federal disaster response efforts through the Disaster Relief Fund.
• Returning FEMA to a Cabinet-level agency will empower the FEMA Administrator to lead a coordinated, government-wide response to disasters.
• FEMA will become more agile and focused on helping Americans – not bogged down by having its resources and personnel diverted to support non-Stafford Act disasters.

The FEMA Act of 2025 puts disaster-impacted states in the driver’s seat, helps dollars reach communities faster, injects common sense, and cuts red tape that drags out disaster recovery for decades.

• By replacing the slow and bureaucratic rebuilding process with faster, project-based grants, states will be able to set the pace of recovery, reduce their dependence on costly consultants, and prioritize the highest-need projects — without having to take out expensive loans or wait years for reimbursement.
• For the first time, states are incentivized to make their own investments in mitigation, robust state rainy day funds, and private insurance policies.
• The discussion draft makes critical permitting reforms to speed up rebuilding projects and eliminate unnecessary delays.
• The FEMA Act of 2025 establishes a Recovery Task Force charged with closing out more than 1,000 lingering disaster declarations dating back to Hurricane Katrina and directs FEMA to improve coordination across all federal agencies involved in disaster recovery.

The FEMA Act of 2025 makes commonsense changes to help disaster aid work better for survivors – while saving taxpayer dollars.

• Disaster survivors will complete a single, streamlined application when applying for assistance, significantly reducing the paperwork burden.
• FEMA must provide clear, understandable notices to disaster survivors — ending the confusion caused by complex and jargon-filled denial letters.
• The discussion draft directs the FEMA Administrator to apply practical, survivor-focused solutions that both speed assistance and reduce overall costs to taxpayers.
• It removes disincentives that have discouraged donations from charities, religious organizations, and the public, ensuring more non-federal support for disaster survivors.
• States are given more flexibility to determine the best emergency housing solution for a particular disaster.

The FEMA Act of 2025 strengthens efforts to protect communities before a disaster occurs.

• States can receive preapproval for mitigation projects through a peer-review process to speed up funding when disaster strikes.
• The discussion draft clarifies building code requirements, ensuring states retain the flexibility to tailor standards to the hazards they face.
• It supports homeowners as they invest in cost-effective mitigation improvements, reducing long-term disaster costs.

The FEMA Act of 2025 ends the politicization of disaster aid and demands greater transparency and accountability from FEMA.

• The discussion draft strictly prohibits any political discrimination in providing disaster recovery assistance.
• It directs the Office of Management and Budget (OMB) to establish a centralized public website that tracks disaster assistance funding across the federal government.
• It mandates a full Government Accountability Office (GAO) review of all FEMA regulations and policies to eliminate outdated, conflicting, and unnecessary rules.
• It requires an assessment of identity theft and disaster fraud risks, and directs reviews related to insurance coverage, the effectiveness of public alerting systems, and cost savings associated with the reforms in the discussion draft.