How FEMA is affected by the shutdown

By Thomas Frank | 02/17/2026 06:18 AM EST

Thousands of disaster workers remained on the job as Homeland Security funding lapsed Saturday. But states could see FEMA reimbursements stall.

Workers at FEMA headquarters last month.

Workers at FEMA headquarters last month. Julia Demaree Nikhinson/AP

Thousands of federal disaster employees continued helping communities across the U.S. on Monday despite a partial shutdown of the Department of Homeland Security.

The signs of ongoing emergency operations by the Federal Emergency Management Agency came after a breakdown in congressional budget negotiations caused a funding lapse early Saturday morning. The Trump administration warned last week that the closure of DHS could lead FEMA to halt reimbursing states for long-term rebuilding projects, even as life-saving missions continue.

FEMA, which is part of DHS, has several billion dollars in its Disaster Relief Fund, which pays for on-the-ground operations in the wake of catastrophes. The fund also reimburses states for disaster recovery expenses such as cleanup and repairs. It is unclear if reimbursements will continue or be suspended during the funding lapse.

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Neither FEMA nor DHS replied to requests for comment.

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