Trump Visits L.A. and Tours Fire Damage After Suggesting FEMA Be Eliminated: Live Updates
Published On Jan 24, 2025, 5:54 AM
President Trump suggested abolishing FEMA, asserting that individual states could better manage disaster responses, particularly citing the aftermath of Hurricane Helene in North Carolina. This statement has caused distress among FEMA employees, some of whom feel betrayed. Trump's comments mirror the outlines of 'Project 2025', which proposes shifting financial disaster response burdens more heavily onto states. While some federal officials acknowledge that FEMA may be overextended, they also caution against shifting responsibility without ensuring that all states have the capacity to manage such disasters effectively. The discussion coincides with an increase in extreme weather due to climate change, complicating these proposed shifts in policy.
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If Trump moves forward with his plan to significantly cut FEMA's budget and place more responsibilities on states, it could lead to increased state-level insurance claims and liabilities. This might negatively affect insurance companies that rely on federal support. Short-term, companies focused on flood and disaster recovery insurance may face rising claims if states struggle to manage disasters alone.
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