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OUR PERSPECTIVES

FY25 Disaster Supplemental Preview



Speculation that Congress will provide supplemental funding to address damage incurred by natural disasters in the last two years (and mitigate the damage of future disasters) has all but reached a critical mass. After elections, congressional appropriators are expected to begin negotiations to deliver this funding, either as standalone legislation or within an omnibus package.


In the final days of 2022, Congress passed the Consolidated Appropriations Act of 2023 – an omnibus package – which included supplemental appropriations for recovery from disasters that occurred in 2021 and 2022. As a precursor to the supplemental disaster funding hopefully being delivered in the coming weeks, take a look at some of the disaster funding that was included in the last disaster supplemental, which provided over $27 billion to federal agencies:


USDA Ag Programs: $3.74 billion for crop losses and lost agriculture revenues; almost $500 million of which was specifically dedicated to livestock producers for losses incurred by drought or wildfire. There was also $27 million for the Emergency Forest Reforestation Program, $75 million for the Community Facilities Program, and $325 million for the Rural Water and Waste Disposal Program.


Army Corps of Engineers: $1.48 billion to make repairs to projects impacted by natural disasters, construction to increase resiliency from future flooding and storms, and more.


Forest Service: $510 million for Forest Service Non-Fire accounts and $375 million for Forest Service’s Wildland Fire Management for wildland fire suppression activities.


Economic Development Administration: EDA received $500 million for expenses related to flood mitigation, disaster relief, long-term recovery, and restoration of infrastructure in areas that received a major disaster designation. EDA also received an additional $618 million for the Tech Hubs and Recompete programs, which had been authorized just months earlier.


Environmental Protection Agency: $1.67 billion for EPA’s Clean and Drinking Water State Revolving Funds for wastewater treatment works and drinking water facilities impacted by hurricanes.


Federal Emergency Management Agency: $5 billion for FEMA’s Disaster Relief Fund for disaster recovery efforts related to disasters, particularly Hurricane Fiona in Puerto Rico and Hurricane Ian in Florida. There was also $1.45 billion appropriated for the Hermit’s Peak/Calf Canyon Fire Assistance Program.


National Oceanic and Atmospheric Administration: NOAA received $327 million for the procurement of hurricane hunter aircraft and an additional $300 million for mitigating the effects of commercial fishery failures and fishery resource disasters.


National Park Service: $1.5 billion for NPS for construction and repair expenses related to the consequences of wildfires, hurricanes, and other natural disasters.


National Science Foundation: NSF received over $818 million for research; roughly a quarter of which was dedicated to implementing the Research and Development, Competition, and Innovation Act. There was an additional $217 million appropriated for STEM education.


Small Business Administration: $858 million for SBA’s Disaster Loans Program to support requirements for Hurricanes Fiona, Ian, and other disaster loans programs administered by SBA.


Transportation: $803 million for the Federal Highway Administration to reimburse states and territories for damage from natural disasters to roads and bridges in the National Highway System and $213.9 million for the Federal Transit Administration to support public transit systems impacted by natural disasters.


The funding outlined above represents just a portion of what was appropriated to agencies across the federal government in 2023. Billions of dollars were also provided for low-income housing assistance, Community Development Block Grants, public health, land management, energy, and more. Despite what’s been an otherwise difficult year for funding, the Fiscal Responsibility Act allows for what "emergency funding" that can exceed budget caps without triggering spending reductions in other areas. If the damage incurred by countless wildfires and Hurricanes Helene and Milton are any indication, Congress is poised to deliver a significant amount of funding for disaster recovery before the end of the year.

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