FEMA Chief Urges States to Build Disaster Response Reserves

Federal Emergency Management Agency Administrator Cameron Hamilton is urging states to strengthen financial reserves and expand disaster response capabilities as President Donald Trump's administration moves to reduce dependence on federal disaster assistance. Speaking Tuesday at the National Emergency Management Association's Annual Forum, Hamilton outlined a potential shift toward greater state responsibility within six months, according to Politico.

The proposed changes would require states to prepare financially and operationally to manage hurricanes, floods, wildfires and other emergencies with less reliance on federal intervention. Hamilton also described plans for a national mutual aid system that would enable states to support one another during disasters.

Hamilton said states need sufficient resources to begin recovery without waiting for federal disaster declarations. His remarks, recorded in material obtained by Politico, emphasized the importance of immediate local and state action.

"Every state must have the appropriate financial reserves" and other capabilities "to ensure that recovery efforts can start immediately and not necessarily be held up simply because of the federal [disaster] declaration process," Hamilton said, according to a recording obtained by Politico.

The proposed mutual aid framework would build on the existing Emergency Management Assistance Compact, which provides a legal basis for states to share emergency personnel and equipment. The agreement establishes responsibilities, reimbursement arrangements and protections for workers deployed to assist disaster-stricken communities.

Hamilton also indicated that the administration would seek to ease certain federal requirements governing rebuilding projects financed with federal funds. The changes would target environmental and historical preservation rules that officials consider additional administrative burdens.

"You will also see us asking for greater alleviation and waiving of federal environmental and historical preservation requirements, things that add layers of bureaucracy," Hamilton said.

The initiative follows an Oct. 15 internal memo outlining plans to strengthen state and local emergency management capabilities. Trump has repeatedly advocated greater state financial responsibility for disaster response and recovery, and early in his second term suggested that FEMA's federal role could eventually be phased out.

Hamilton said the agency would place greater emphasis on preparedness and reducing disaster risks before emergencies occur. The approach, he said, would direct federal funding toward strengthening capabilities rather than encouraging continued dependence on federal assistance.

"Federal dollars should be building greater capability, not creating greater dependency," Hamilton said.

However, a FEMA-funded study released Friday identified significant resource limitations among local emergency management agencies. Conducted by Argonne National Laboratory, the research used surveys and interviews covering 1,689 local jurisdictions, 37 states, 59 tribal nations and four territories.

The study found that local emergency management agencies typically face staffing shortages and insufficient funding. FEMA said the findings support increased investment in emergency management at the state and local levels.

Workforce capacity is also a concern within FEMA itself. In September, U.S. District Judge Susan Illston ruled that a Department of Homeland Security plan directing the agency to cut its workforce by 50% violated federal law.

The proposed reduction was not implemented, and FEMA has rehired some employees. Illston found that protections enacted after Hurricane Katrina reserve staffing decisions for FEMA and prohibit the Department of Homeland Security from substantially reducing the agency's functions.

Hamilton was sworn in on Aug. 10 after Senate confirmation, returning to lead an agency that had operated under acting administrators. He was fired as acting administrator in May 2025 after publicly opposing FEMA's elimination.

Eric Holdeman, a former emergency management director in King County, Washington, warned on LinkedIn that some states lack the financial reserves and personnel necessary to replace federal support. The administration continues to approve disaster assistance while pursuing changes to FEMA's responsibilities.

FEMA did not immediately respond to Politico's request for comment.