If Trump cuts disaster aid, states could face their own program cuts

By Adam Aton | 10/27/2025 06:47 AM EDT

“What might seem small is, in fact, really impactful in the context of the state budget,” a Pew analyst says in a report showing state fiscal vulnerability.

Homeland Security Secretary Kristi Noem

Homeland Security Secretary Kristi Noem is overseeing a revision of the Federal Emergency Management Agency, which could sharply reduce disaster aid to states and create fiscal problems for them. Evan Vucci/AP

President Donald Trump’s plan to shift more disaster costs away from the federal government could force states into tough budgetary trade-offs.

Some states have received significant amounts of damage from disasters that are the equivalent of up to 19 percent of their annual general fund, according to an analysis published last week by the Pew Charitable Trusts.

“We wanted to understand what it would mean for states to take on the ongoing expenses of disasters,” said Colin Foard, director of Pew’s managing fiscal risks initiative.

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Pew calculated the average amount of Federal Emergency Management Agency aid that each state received from 2003 to 2025. Its analysis compares each state average to its general fund spending in 2024.

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