The Biden administration is increasingly worried that it’s running out of money ahead of a major disaster, and on Wednesday imposed spending restrictions that halt federal payments for existing rebuilding projects.
The move affects the Federal Emergency Management Agency’s Disaster Relief Fund, which pays for long-term rebuilding efforts and for short-term emergency expenses such as housing, food and water, and search-and-rescue operations during major events such as storms, wildfires, flooding.
The spending restriction limits FEMA to paying only for emergency expenses and comes at the height of what scientists predict could be a ferocious hurricane season.
It marks the 10th time since 2003 that FEMA has limited spending through its disaster fund due to depleted cash reserves. The restrictions typically are in place for a few weeks or months, until Congress approves new funding. FEMA made no public announcement about the move beyond posting a notice on an obscure part of its website.
