Emergency management is changing. After Hurricane Katrina (2005), federal reforms reshaped how the nation delivers disaster assistance. The federal government now supports major disaster operations through funding and technical expertise, while states and localities lead on-the-ground response and recovery. From 1980 to 2024, the United States (US) experienced 403 weather and climate disasters, causing more than $2.9 trillion in total damages. In 2023 alone, 849 counties across the country faced at least one federally declared disaster—demonstrating the widespread and local nature of these impacts.
As funding structures and policy priorities shift, state and local governments are assuming greater responsibility for disaster response, recovery, and resilience. The future of emergency management will depend on how effectively these governments adapt to this new landscape—and federal reforms are only beginning to emerge.
The Federal Landscape is Shifting
Over the past year, the federal government has recalibrated how they fund and manage disaster programs. In 2025, they:
- Reduced disaster response support from federal interagency partners.
- Eliminated several grant programs.
- Delayed new grant awards under existing programs.
- Increased application requirements and strengthened terms and conditions for recipients.
These actions reflect a broader federal effort to redefine how all levels of government share disaster responsibilities.
Additionally, in January, the President launched a FEMA Review Council to assess FEMA and recommend “changes related to FEMA to best serve the national interest.” The Council’s recommendations are expected to shape not only FEMA’s internal reforms but also potential legislative changes that Congress may consider in the coming year.
Legislative Momentum Towards Reform
Congress has begun advancing legislation that could redefine the foundations of emergency management. The most expansive and bipartisan proposal, the Fixing Emergency Management for Americans (FEMA) Act of 2025 (H.R. 4669), could significantly alter the speed, flexibility, and scale of federal disaster assistance. If enacted, the bill would streamline some programs while reducing or ending others—shifting more operational and fiscal responsibility to state and local governments.
How States Are Responding
While the full scope of federal reform remains uncertain, many states are not waiting to act. They are proactively preparing for a future where self-reliance, interstate partnerships, flexibility, and sustained investment in emergency management and resilience will be essential. Across the country, we are seeing:
- Conducting strategic capabilities assessments to measure statewide readiness and identify gaps where federal programs have traditionally provided capacity.
- Increased state-level resilience funding, with legislatures dedicating new appropriations or bond measures to support disaster management, mitigation, and long-term recovery efforts.
- Modernizing emergency management systems and staffing structures designed to coordinate cross-sector recovery and adaptation.
- Updating legislation to improve fiscal preparedness in emergency management, including increased flexibility in state disaster-fund usage, procurement, and pre-disaster contracting—enabling faster, more autonomous responses when federal aid lags.
As Hagerty’s Executive Chairman and former FEMA Administrator Brock Long explains:
“Emergency management works like a four-legged chair. The legs—state and local governments, the private sector, voluntary organizations, and the federal government—must all work together to keep the system standing. Federal reform should empower states and localities with the tools to lead quickly, efficiently, and responsibly. If one leg weakens, the system wobbles; if two fail, it collapses.”
His perspective highlights that the future of emergency management will rely on coordination and shared responsibility among all levels of government, the private sector, and community organizations to ensure a unified and efficient approach to disaster readiness and management.
Preparing for What Comes Next
With no major hurricanes making landfall in the US in 2025, these reforms have yet to face a real-world test. When the next major disaster strikes, state and local governments must be ready to operate under new rules, expectations, and funding realities.
At Hagerty Consulting, we track these changes and help clients respond strategically. In this series, we will share insights, spotlight innovative practices, and support communities preparing for an evolving emergency management landscape—one that requires proactive planning and strong local leadership.
We look forward to continuing this dialogue and sharing real-time insights as the field evolves.
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