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State emergency officials say new rules and delays for FEMA grants put disaster response at risk

New York faced a 79% FEMA grant cut and Illinois 69%, causing states to delay emergency preparations amid funding freezes and legal disputes, officials said.

  • On October 19, 2025, state crisis managers warned that severe cuts, restrictions, and funding delays from the Federal Emergency Management Agency pose a growing risk and prompt states to prepare for a different relationship with FEMA.
  • FEMA reduced recipients' spending window from three years to one and the Trump administration suspended a $3.6 billion resilience program, cutting FEMA's workforce and disrupting training.
  • A Manhattan federal judge last week ordered DHS and FEMA to restore $34 million in transit security grants withheld from New York City, while New York state lost $100 million and Illinois saw a 69% cut.
  • State and local agencies are pausing hiring and purchases as a federal judge in Rhode Island's order forced FEMA to rescind awards and halt payments, while Hawaii warns of contractor delays and possible furloughs after the wildfire killed more than 100 people.
  • Given the uncertainty, states are seeking to be less reliant on federal funding as the National Emergency Management Association says risk methodology is unclear and emergency managers object to certifying revised population counts that the Department of Homeland Security links to deportations.
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State emergency officials say new rules and delays for FEMA grants put disaster response at risk

State emergency management officials say they're facing funding challenges from the federal government that threaten the country's ability to respond to crises.

·United States
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The Hamilton Spectator broke the news in Hamilton, Canada on Sunday, October 19, 2025.
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