(RealClearInvestigations)—Although the Federal Emergency Management Agency told Congress last month that it had $4 billion in its Disaster Relief Fund, officials also warned that the Fund could have a shortfall of $6 billion by year’s end, a situation FEMA says could deteriorate in the aftermath of Hurricane Helene.
While FEMA is expected to ask Congress for new money, budget experts note a surprising fact: FEMA is currently sitting on untapped reserves appropriated for past disasters stretching back decades.
An August report from the Department of Homeland Security’s Office of Inspector General noted that in 2022, FEMA “estimated that 847 disaster declarations with approximately $73 billion in unliquidated funds remained open.”
Drilling down on that data, the OIG found that $8.3 billion of that total was for disasters declared in 2012 or earlier.
Such developments are part of a larger pattern in which FEMA failed to close out specific grant programs “within a certain timeframe, known as the period of performance (POP),” according to the IG report. Those projects now represent billions in unliquidated appropriations that could potentially be returned to the DRF (Disaster Relief Fund).”
These “unliquidated obligations” reflect the complex federal budgeting processes. Safeguards are important so that FEMA funding doesn’t become a slush fund that the agency can spend however it chooses, budget experts said, but the inability to tap unspent appropriations from long-ago crises complicates the agency’s ability to respond to immediate disasters.
‘Age Old-Game’
“This is an age-old game that happens and it doesn’t matter what administration is in,” said Brian Cavanaugh, who served as an appropriations manager at FEMA in the Trump administration. “It’s unfortunate how complex disaster relief has become, but it’s skyrocketing costs.”
Cavanaugh said neither action from Congress nor an executive order from the White House would be required to tap those funds because FEMA is operating on the sort of continuing resolutions Congress routinely authorizes. If the money is part of “immediate needs funding,” DHS Secretary Alejandro Mayorkas could draw from the billions in untapped money to help the victims of Helene and then inform lawmakers he was compelled to do so, leaving elected officials facing charges they sought to pinch pennies when Americans were desperate.
FEMA did not respond to a request for comment about whether it could access the earmarked funds.
Mayorkas, whose Department oversees FEMA, stressed the agency is not broke, and both he and other FEMA officials said this week there was enough money in the Disaster Relief Fund to meet the needs of victims of Hurricane Helene, which with a death count of more than 200 stands as the most lethal storm to hit the U.S. since Hurricane Katrina in 2005.
Most of Helene’s bills will come due in the future, and Mayorkas said FEMA can meet the day-to-day needs of operations right now in afflicted states but might be hard-pressed if another storm like Helene were to hit this year. Hurricane season officially lasts until the end of November, but historically, September and October have been the months in which the occasional monster smites the U.S.
“We are meeting the immediate needs with the money that we have,” Mayorkas told a press gaggle Oct. 2 on Air Force One. “We are expecting another hurricane hitting. We do not have the funds. FEMA does not have the funds to make it through the season and … what is imminent.”
On Oct. 3, FEMA, which handles state and local government relief aid as well as the federal flood insurance plan and individual emergency requests, said it had spent at least $20 million in North Carolina, South Carolina, and Florida – three of the states that bore the brunt of Helene as it ripped ashore last week. The figures FEMA provided did not include Georgia, another state hard-hit by Helene, which made landfall in Florida on Sept. 26 as a Category 4 hurricane.
Longtime FEMA critics said the looming shortfall is not surprising, given its main job is to use federal taxpayer dollars to reimburse state and local governments for recovery costs, in addition to more immediate money it provides to victims on an individual basis.
“It doesn’t strike me as too weird,” said Chris Edwards, policy scholar at the conservative Cato Institute. “Right now, $20 million is peanuts, but it’s not necessarily unreasonable to think the upcoming bills will be much, much higher.”
Skyrocketing Costs
The skyrocketing costs associated with disaster recovery are one of the main drivers of FEMA’s predicted budget woes. Last year, the U.S. saw a record 28 storms that caused more than $1 billion in damages, and the $1 billion threshold has been reached 19 times thus far in 2024. Since 2001, there have been nine times that FEMA nearly ran out of money in its Disaster Relief Fund, forcing it to pause hundreds of non “life-saving services” the agency runs.
The price tag on some of those services, such as those associated with assistance to immigration, has seen an unprecedented surge due to millions of illegal entrants during Biden’s term. FEMA has spent more than $640 million on those programs in 2024, leading to criticism this week from Texas Republican Gov. Greg Abbott and others.
FEMA rebutted the claims by insisting those sums did not come out of the Disaster Relief Fund. Yet as Cavanaugh, Edwards, and others noted, the relief fund isn’t the main driver of FEMA’s expenses, which are primarily reimbursements to state and local agencies that handle things like debris removal, road and power grid repairs, and the like.
Thus far, FEMA has been getting mixed reviews from elected officials for its response to Hurricane Helene in afflicted states. While five state officials in North Carolina’s hard-hit Buncombe County did not respond to questions from RCI, some Tar Heel residents have complained in media reports about the agency’s invisibility.
While FEMA rarely initiates or administers contracts to clean debris, restore power, or search for survivors, the agency does provide emergency cash to storm victims who apply for it. Flood insurance protection comes not from private homeowners policies but from a federal program run by FEMA.
‘Crazy’ Numbers
Generally, FEMA, along with state or local officials and a neutral third-party civil engineer, will estimate the cost of such work, and then the final figure will come through negotiations. But given those settlements are far in the future, they should not have any bearing on FEMA’s current budget.
“It’s just crazy how expensive the numbers have gotten,” said Jeremy Portnoy of OpenTheBooks, a nonpartisan watchdog of government spending. “They’ve been warning for months now they are running out of money.”
-
The Importance of Prayer: How a Christian Gold Company Stands Out by Defending Americans’ Retirement
Portnoy first called attention to FEMA’s unspent funds in conversations with RealClearInvestigations on Sept. 8. He said it seems bizarre that federal officials would have a pot substantial enough to cover a projected shortfall while adding billions to the Disaster Relief Fund, but fail to draw on it.
“There is all that money just sitting there,” Portnoy said. “They’re saying they don’t have enough money but when you juxtapose it with the more than $8 billion, well, why not use that right now in Florida and other places?”
The “unliquidated obligations” have stayed on FEMA’s books because it “subjectively” extended the deadlines on some projects. The deadline for 2012’s Superstorm Sandy has been extended to 2026.
“As a result, the potential risk for fraud, waste, and abuse increases the longer a program remains open,” a DHS report concluded.
Although DHS could probably reach into such unliquidated obligations to help restore order in areas devastated by Helene, experts note that bureaucracies are loath to resort to such tactics when budget negotiations are near, as they are when the fiscal year ends this month.
“The bridges that have been washed out, that’s not something FEMA will have to pay tomorrow,” Cavanaugh said.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
