Industry Trade Associations Throw More Support Behind FEMA Reform

The American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies were among a handful of organizations to send a letter to federal lawmakers in support of a bill to reform the Federal Emergency Management Agency.

In a letter sent Dec. 9 to leaders of the U.S. House of Representatives, APCIA and NAMIC said the Fixing Emergency Management for American Act (FEMA Act), HR 4669, “aligns with the President’s desire to help communities and individuals cut through red tape, recover, and rebuild faster – while also ensuring disaster recovery expenses are not placed solely on communities who may be least able to afford them.”

“At a time when concerns about costs of living and affordability are top of mind for many Americans, the bill’s reforms are urgently needed,” the organization wrote. The National Rural Electric Cooperative Association, American Public Power Association, American Society of Civil Engineers, Large Public Power Council, and National Association of Homebuilders joined in sending the letter.

The bipartisan bill was introduced by Sam Graves, R-Mo., and Rick Larsen, D-Wash. and earlier passed out of the House Transportation and Infrastructure Committee by a 57-3 margin.

The bill removes FEMA from oversight of the Department of Homeland Security, restoring it to an independent agency that reports directly to President Trump. The FEMA administrator would be elevated to a cabinet-level post. The job was held by David Richardson as acting administrator. He was named to the role in May after Cameron Hamilton, who’d had also been leading the agency in an acting role, was fired after saying at a congressional hearing that he did not support eliminating the agency.

Richardson resigned last month. He has said states would be sharing more of the costs after natural disasters.

Trump has been a vocal critic of FEMA, and has threatened to abolish the agency. His administration terminated the Building Resilient Infrastructure and Communities program, overseen by FEMA, in April but was stopped by a federal judge in August.

The bill would also strictly prohibit any political discrimination in providing disaster recovery assistance. States would be incentivized to make investments in mitigation, “rainy day” funds, and private insurance policies.

According to the groups’ letter, the FEMA Act provides clarity around reimbursement for loan interest costs and emergency work timelines, and it contains language to start a “universal application” when applying for assistance rather than the burdensome paperwork needed today.

Topics FEMA