FEMA Funding Would Change Under New Republican Bill

In the aftermath of the devastation wrought by Hurricane Helene across the Southeast, a new bill aims to reform funding by the Federal Emergency Management Agency (FEMA).
Republican U.S. Representative Nancy Mace of South Carolina has introduced a bill that would pull all funding from the Shelter and Services Program of FEMA and rededicate it to disaster relief, a plan prompting a financial expert to say, “election year political posturing is overriding common sense.”
The Shelter and Services Program helps provide essentials to migrants released from custody of the Department of Homeland Security while they await their immigration outcome. The services include food, shelter, transportation, acute medical care, clothing and translation assistance.
“This bill will demand FEMA to stop funding illegal aliens and redirect funding to support Hurricane victims,” Mace on Friday posted to X, formerly Twitter.
FEMA leaders previously said the agency did not have enough funds for the rest of the hurricane season, as the victims of Hurricane Helene work with limited resources and entire towns and businesses were destroyed across the Appalachian Mountains.
The punishing storm’s death toll has exceeded 200 people, according to the Associated Press.
In efforts to assist migrants, the Shelter and Services Program has allocated at least $640 million. Some Republicans say the funds would have been better spent supporting Americans during hurricane disaster relief.
“This is easy,” Texas GOP Governor Greg Abbott wrote on X: “[Homeland Security Secretary Alejandro] Mayorkas and FEMA—immediately stop spending money on illegal immigration resettlement and redirect those funds to areas hit by the hurricane. Put Americans first.”
A DHS spokesperson said all claims that disaster relief funding went to migrants are entirely false. “As Secretary Mayorkas said, FEMA has the necessary resources to meet the immediate needs associated with Hurricane Helene and other disasters,” a spokesperson told Newsweek. “The Shelter and Services Program (SSP) is a completely separate, appropriated grant program that was authorized and funded by Congress and is not associated in any way with FEMA’s disaster-related authorities or funding streams.”
Mayorkas previously said that FEMA was “meeting the immediate needs with the money that we have,” adding that the agency did not have enough funding to support another hurricane this season.
“We have the immediate needs right now,” Mayorkas said earlier this week. “On a continuing resolution, we have funds, but that is not a stable source of supply, if you will.”
Funding for FEMA’s migrant services have been growing in recent years. Last year, just $363 million was allocated, but this year saw an increase of around $300 million. Over the past two years, more than $1 billion was spent on the migrant services under FEMA.
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, said the “election year political posturing is overriding common sense.”
“This is not really an either/or scenario,” Beene told Newsweek. “The federal government can fund any amount they wish to help the victims of Hurricane Helene without having to stop or withdraw funding from other entities. Regardless of your personal views on FEMA’s other programs, the funding of those should in no way impact how much or little is allocated to helping those devastated by the recent flooding.”
Michael Ryan, finance expert and founder of michaelryanmoney.com, said the proposal by Mace sounds helpful, especially with the aftermath of Hurricane Helene on Americans’ minds. But it would not fix FEMA’s underlying funding challenges, he said.
“We’re just moving the problem around,” Ryan told Newsweek, adding that dedicated emergency reserves and public-private partnerships should play a more crucial role in allaying the problem.
“While the bill might provide some immediate relief for disaster response, it’s not the comprehensive solution we need. I’ve seen this pattern before. Quick fixes often lead to longer-term challenges. … The goal isn’t just to solve today’s crisis. It’s to build resilience for tomorrow’s challenges too.”