Story perspectives

FEMA Council Proposes Privatized Flood Insurance, Aid Cuts

5/8/2026

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Summary

Story summary

On May 7, 2026, the Trump-appointed Federal Emergency Management Agency (FEMA) Review Council adopted an 89-page reform report.
Drop staff-cut plan and call for a staffing review, aid thresholds, privatizing the National Flood Insurance Program, and limiting survivor aid to housing.
Homeland Security Secretary Markwayne Mullin said the plan will go to President Donald Trump, though proposals need approval, while experts warned it could shift costs to states and low-income survivors.

History

Historical Context

After Hurricane Katrina’s catastrophic landfall in August 2005—killing about 1,400 people and causing $125 billion in damage—FEMA’s response under Michael D. Brown drew sharp criticism and led to the 2006 Post-Katrina Reform Act. In 2026, the FEMA Review Council, chaired by Markwayne Mullin and backed by President Donald Trump, proposes privatizing the NFIP and capping survivor housing aid, reviving the debate over federal disaster responsibility.

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Story summary

On May 7, 2026, the Trump-appointed Federal Emergency Management Agency (FEMA) Review Council adopted an 89-page reform report.
Drop staff-cut plan and call for a staffing review, aid thresholds, privatizing the National Flood Insurance Program, and limiting survivor aid to housing.
Homeland Security Secretary Markwayne Mullin said the plan will go to President Donald Trump, though proposals need approval, while experts warned it could shift costs to states and low-income survivors.

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