The FEMA Review Council, which President Donald Trump created in January 2025, wants federal disaster aid to be harder to get. Its final report, approved at a public meeting on May 7, 2026, recommends raising the damage threshold states must clear for a federal declaration by more than 50%.
By the report’s math, as quoted by NPR, 29% of disasters declared from 2012 through 2025 would not have met the new threshold, representing $1.5 billion.
The report is a roadmap, not a rule. The National League of Cities summarized the report as leaving next steps to the administration, with some recommendations able to proceed administratively and others needing Congress or new regulations.
The council also recommends shifting flood insurance from the federal program toward private insurers.
Approval rates already differ by state politics
An E&E News by Politico analysis reported in March 2026 found that states with a Democratic governor and two Democratic senators had a 23% approval rate for disaster requests, compared with 89% for states with a Republican governor and two Republican senators.
Two House Democrats asked the Government Accountability Office on May 28, 2026, to investigate the approval process.
In July 2026, Trump rejected $227 million in requests from New York, New Jersey, Massachusetts and Rhode Island for a February snowstorm, two days after approving aid for six Republican-led states, E&E News reported. The White House said politics played no role in disaster decisions.
What a declaration pays
Even when a declaration comes through, individual help has a ceiling. FEMA’s maximum under the Individuals and Households Program is $44,800 for housing assistance and $44,800 for other needs for a single disaster declared on or after Oct. 1, 2025, according to a Federal Register notice published Sept. 29, 2026.
Those are maximums, not typical payments, and they apply only when a declaration covers aid to individuals.
Flood damage is a separate policy
FloodSmart, the federal flood insurance site, says most homeowners insurance policies do not cover flood damage and that a flood insurance policy protects your home and belongings.
It also says almost one-third of National Flood Insurance Program claims come from outside of high-risk flood areas. Free online tools can show whether a property is at risk.
Flood policies through the federal program cover up to $250,000 for a home’s structure, and contents coverage of up to $100,000 can be bought separately, according to FEMA. A 30-day waiting period usually applies, with some exceptions, such as a policy bought while taking out or changing a mortgage.
Congress extended the program only through Dec. 11, 2026, in a short-term spending bill, according to the National Association of Home Builders.
Check the policy beside it
A flood policy sits next to a homeowners policy that deserves its own review, starting with whether the policy would actually cover a full loss. The Money Talks News homeowners insurance page can help you compare quotes.
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The council’s report leaves the next steps to the administration, so none of this is settled. A flood policy, though, usually takes 30 days to start.
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