As the U.S. braces for Hurricane Milton, there are rising concerns over the potential impact on already depleted disaster relief funds. The country is still recovering from the devastation caused by Hurricane Helene, which has placed immense pressure on the federal government’s ability to respond to large-scale natural disasters. With Milton looming on the horizon, it is becoming increasingly evident that the current U.S. disaster relief framework is teetering on the edge of collapse.
The financial backbone of U.S. disaster relief programs is under extreme stress. As of the beginning of October, only $1.6 billion remains in the Small Business Administration’s (SBA) disaster loan program. This figure, already inadequate, is projected to be depleted by the end of the month without emergency action from Congress. The strain on the program stems from a surge in disaster loan applications following Hurricane Helene, which has resulted in a backlog of at least 3,000 new applications daily.
Compounding the problem, Congress failed to include additional funding for disaster relief in its recent short-term spending bill. While the bill keeps the government running, it left the disaster relief fund dangerously underfunded. Without swift intervention, the capacity to respond to future disasters, like Milton, will be severely compromised.
Despite the financial challenges, the Federal Emergency Management Agency (FEMA) continues to respond to the aftermath of Hurricane Helene. Federal assistance for Helene survivors has surpassed $210 million, with nearly 7,000 personnel deployed to the affected regions. To date, FEMA has delivered over 15.6 million meals, 13.9 million liters of water, 157 generators, and 505,000 tarps to those in need. However, with Hurricane Milton fast approaching, concerns are growing about FEMA’s capacity to handle two major disasters in rapid succession.
To address Milton’s potential impact, FEMA is taking a proactive stance. The agency has pre-positioned resources and personnel in states likely to be affected, including Florida, Georgia, and South Carolina. Over 20 million meals and 40 million liters of water have been readied for deployment, along with additional FEMA Incident Management Assistance Teams, Urban Search & Rescue teams, and swift water rescue units. In total, FEMA has mobilized over 300 ambulances and 30 high-water vehicles to assist in the response efforts.
FEMA assures the public that it has the capacity to manage both disasters simultaneously. Keith Turi, the agency’s acting associate administrator for response and recovery, emphasized that FEMA has sufficient resources to deal with Milton without disrupting the ongoing Helene recovery operations. However, the unprecedented strain placed on disaster relief systems due to back-to-back hurricanes highlights the urgent need for action.
While FEMA remains confident in its ability to respond to immediate needs, the long-term consequences of the disaster fund’s depletion are dire. Without replenishment, many communities affected by Hurricanes Helene and Milton could face extended recovery periods. Delayed rebuilding efforts, stalled infrastructure projects, and unmet needs could cripple local economies already reeling from the devastation.
For example, hazard mitigation programs designed to strengthen infrastructure and reduce the impact of future disasters may be paused. This would leave already vulnerable communities more exposed to the next catastrophic event. Critical infrastructure, such as bridges, roads, and flood control systems, could remain unrepaired, further increasing the risk of severe damage from future storms.
Moreover, many affected individuals and small businesses rely on disaster loans from the SBA to rebuild their homes and operations. With the disaster loan program facing imminent depletion, thousands could be left without access to the financial support they need to recover. The consequences of these delays would be felt most acutely by low-income communities, which often lack the resources to rebound quickly from such disasters.
With only a few weeks left before the disaster fund runs dry, Congress faces mounting pressure to take swift action. There are several immediate steps lawmakers could take to prevent the looming shortfall, including approving additional emergency funding for FEMA and the SBA. Some legislators have even called for Congress to reconvene before its scheduled return in November to address the urgent need for supplemental disaster relief funding.
Senator Rick Scott has urged Senate Majority Leader Chuck Schumer to pass a “clean supplemental disaster funding bill” that would prioritize the restoration of FEMA’s Disaster Relief Fund (DRF) and the SBA’s disaster loan program. In addition to these efforts, Representative Jared Moskowitz is introducing legislation aimed at boosting the funding available for disaster programs.
President Biden has also called on Congress to act swiftly. The president has signaled that he will submit an updated funding request to cover the full spectrum of disaster recovery needs, including the ongoing response to Hurricane Helene and preparations for Hurricane Milton.
If Congress fails to replenish the DRF, the long-term impacts on disaster-affected communities will be severe. Delays in recovery projects will lead to increased financial strain on state and local governments, many of which already struggle with budget shortfalls. Counties reliant on federal disaster reimbursements may be forced to take out loans to cover recovery costs, further deepening their debt burdens and potentially jeopardizing their credit ratings.
In addition to financial strain, the depletion of disaster relief funds will hinder future disaster preparedness efforts. Hazard mitigation projects that aim to reduce the severity of future disasters may be postponed or canceled altogether. This would make communities even more vulnerable to future hurricanes, floods, and wildfires, creating a dangerous cycle of under-preparedness.
The financial health of individuals and businesses in disaster-affected areas is also at risk. Without access to disaster loans and other forms of federal assistance, many small businesses could be forced to close permanently, resulting in job losses and a decline in local economic activity. Families struggling to rebuild their homes may face homelessness or housing insecurity as they wait for federal aid that may never come.
The ethical implications of failing to act on disaster relief funding are profound. Vulnerable communities—particularly low-income areas and communities of color—are disproportionately affected by disasters. These communities often have fewer resources to prepare for, respond to, and recover from disasters, making them more reliant on federal aid.
Delaying the replenishment of the DRF exacerbates existing inequalities by leaving disadvantaged populations without the support they need to recover. This could further entrench poverty and economic disparity in already marginalized communities. Additionally, delays in funding could undermine FEMA’s Justice40 commitment, which aims to direct 40% of the benefits from disaster recovery programs to disadvantaged communities.
The social impact of these delays could also be felt in the form of population displacement. Families unable to rebuild their homes may be forced to relocate, leading to demographic shifts and long-term changes in the social fabric of affected regions.
The challenges posed by back-to-back hurricanes like Helene and Milton underscore the need for a more proactive approach to disaster management and funding. Rather than relying on emergency appropriations after each major disaster, Congress should consider establishing regular funding mechanisms to ensure that the DRF remains well-funded year-round.
One potential solution is to implement automatic triggers for DRF replenishment. By tying funding levels to disaster projections and historical data, lawmakers could ensure that the fund is automatically replenished when it dips below a certain threshold. This would prevent future shortfalls and enable FEMA to respond more effectively to consecutive disasters.
Additionally, Congress could increase funding for pre-disaster mitigation programs, such as FEMA’s Building Resilient Infrastructure and Communities (BRIC) initiative. By investing in hazard mitigation projects before disasters strike, communities can reduce the overall damage and cost of recovery efforts in the long run.
Finally, bipartisan cooperation is essential to ensuring that disaster preparedness remains a priority. A more proactive approach to disaster funding would require buy-in from both parties, as well as regular congressional oversight to assess the effectiveness of disaster relief programs and ensure that they are adequately funded.
The imminent arrival of Hurricane Milton, coming on the heels of Hurricane Helene, has brought the U.S. disaster relief system to a breaking point. With FEMA’s Disaster Relief Fund rapidly dwindling, the agency’s ability to respond to future disasters is in jeopardy. Without immediate action from Congress to replenish the fund, long-term recovery efforts could be delayed, leaving communities vulnerable and slowing the economic recovery of disaster-affected areas.
The situation serves as a wake-up call for policymakers to adopt a more proactive and sustainable approach to disaster management. By implementing regular funding mechanisms, increasing investments in pre-disaster mitigation, and establishing automatic triggers for fund replenishment, Congress can ensure that the U.S. is better prepared to handle the increasing frequency and severity of natural disasters.
As the nation braces for Hurricane Milton, the need for decisive action has never been clearer. Policymakers must act swiftly to prevent a humanitarian and economic crisis that could ripple across the country for years to come.
