Executive Summary

• The Biden Administration has requested $98.4 billion in supplemental emergency discretionary appropriations to rebuild communities impacted by recent hurricanes and other natural disasters, among other purposes.
• About $40 billion of the funding would be used to refill the Federal Emergency Management Agency’s disaster relief fund; the remaining $58.4 billion of funding is intended for housing support, transportation infrastructure, agricultural and nutrition assistance, improvements to water systems, and community development.
• Congress faces a government shutdown deadline when the current continuing resolution (CR) expires on December 20, so it’s possible that disaster aid could be included in a CR or larger omnibus appropriations package.

What’s in the Administration’s $98.4 Billion Supplemental Funding Request?

The Biden Administration has sent Congress a supplemental emergency discretionary funding request totaling $98.4 billion. The request includes funding to rebuild communities impacted by Hurricanes Helene and Milton, among other purposes. Notably, the nearly $100 billion funding request is much larger than a typical emergency supplemental funding request. For context, the administration previously asked Congress for $4 billion of supplemental appropriations to rebuild the Francis Scott Key Bridge and the National Security Act enacted earlier this year provided $95.5 billion of funding to Ukraine and Israel.

Summary of White House Disaster Relief Supplemental Funding Request

Source: The White House.

Of the additional funding, $40 billion would go toward refilling the Federal Emergency Management Agency’s (FEMA) disaster relief fund. FEMA has indicated that as long as Congress enacts disaster aid by the December 20 government shutdown deadline, its disaster relief fund will have enough funding to keep supporting recovery efforts.

Another $24 billion of funding would be used to aid farmers that suffered crop or livestock losses due to natural disasters, support rural infrastructure repair and rehabilitation, reform federal wildland firefighter pay (which isn’t typically addressed in a disaster supplemental), and provide grants to Special Supplemental Nutrition Assistance Programs for Woman, Infants, and Children state agencies and Emergency Food Assistance Program distribution partners. An additional $12 billion would be devoted to Community Development Block Grant disaster recovery funding.

The request includes $8 billion to rebuild, repair, and reconstruct transportation infrastructure that was damaged by recent natural disasters; $4 billion for water system upgrades, hazardous waste and debris clean-up, air monitor repair, and underground storage tank repair; and $3 billion to ensure access to health care services and social supports in areas affected by recent natural disasters.

An additional $2 billion would be used to fund economic development grants and transfer funding to the Delta Authority. The Small Business Administration (SBA) would receive $2 billion of funding to provide low-interest disaster loans to businesses, homeowners, renters, and nonprofits affected by recent natural disasters. The SBA’s disaster loan program has been out of money for over a month, which has resulted in over 10,000 loan offers being paused.

One billion dollars would fund the Immediate Aid to Restart School Operations and the Emergency Assistance to Institutions of Higher Education programs, assist school staffing shortages, and replace school equipment. Another $1 billion would support the rebuilding and modernization of the energy grid. The remaining $1.4 billion of funding would be used for fund reimbursements for wreckage removal activities in certain areas and employment support for disaster survivors.

Conclusion

Congress has not enacted a disaster relief package since 2022, although press reports indicate that policymakers intend to spend the new few weeks finalizing a bipartisan disaster relief bill that includes some elements of the Biden Administration’s request. With the government’s shutdown deadline just 32 days away, it’s possible any disaster relief could be included in a continuing resolution or broader omnibus appropriations package.