January 29, 20255 min readTrump Funding Freeze Could Set Disaster Recovery Back for YearsPresident Donald Trumps sudden move to freeze federal grants is hitting states where people are struggling to recover from wildfires and hurricanesA person assesses damages of his house after Hurricane Helene made landfall in Horseshoe Beach, Florida, on September 28, 2024. Chandan Khanna/AFP via Getty ImagesCLIMATEWIRE | The federal government Tuesday shut down the online system it uses to distribute billions in disaster aid after President Donald Trump ordered agencies to freeze the flow of public money, alarming officials who are struggling to respond to catastrophes.The Federal Emergency Management Agency cut off access to the online portal, which funnels roughly $30 billion a year to states for disaster expenses ranging from debris cleanup to infrastructure repairs, following Trump's expansive order to halt federal funding as the White House scrutinizes spending programs, Todd DeVoe, emergency coordinator for Inglewood, California, told POLITICOs E&E News.We may see recovery delayed for years, said DeVoe, who is second vice president of the International Association of Emergency Managers in the United States. The grant portal where we do all grant work is inaccessible.On supporting science journalismIf you're enjoying this article, consider supporting our award-winning journalism by subscribing. By purchasing a subscription you are helping to ensure the future of impactful stories about the discoveries and ideas shaping our world today.FEMA did not respond to requests for comment. The spending pause outlined by a memo released late Monday by the Office of Management and Budget was causing confusion within the disaster agency, according to people within FEMA who were not authorized to speak to the press. A federal judge blocked Trump's spending freeze on Tuesday evening, minutes before it was scheduled to take effect, until Feb. 3.Its going to slow things down when theres already frustration with how long it takes for communities to recover, former FEMA chief of staff Michael Coen told E&E News, referring to the funding disruption. Its just one more thing they now have to deal with.The spending pause was scheduled to take effect at 5 p.m. Tuesday, four days after Trump assailed FEMA and the Biden administration for the response to Hurricane Helene in North Carolina in late September. The freeze affected programs across the government as the administration undertook a sprawling review to ensure they comply with Trump's executive orders, including cutting off funds for diversity, equity and inclusion.A halt to FEMA spending could affect every state that has been hit by a major storm, wildfire or other disaster in the past decade or more as they wait for the federal government to reimburse them for recovery projects. FEMA pays 75-100 percent of rebuilding costs and is still reimbursing states for disasters that occurred two decades ago.Theyre kind of in limbo right now, trying to figure out if theyre going to be funded or not, DeVoe said. The pause could really impact low-income states and communities.A lot depends on how long FEMA withholds funding. If this is just a short pause, DeVoe said, there may be no harm, no foul.It's unclear how a halt will affect recovery efforts related to the wildfires in Southern California or from Hurricanes Helene and Milton, which battered Florida, Georgia and South Carolina in addition to North Carolina.Southeastern states are still cleaning up debris left by the hurricanes, but they have not yet sought reconstruction aid from FEMA. The California wildfires are still active. FEMA has agreed to pay a large share of cleanup costs for the hurricanes and fires and for emergency housing.Category B is paying for a lot of people in North Carolina to be in hotel rooms, Coen said, referring to FEMA disaster aid for emergency protection. Thats also paying for funding in California for the immediate response to the wildfires.Rep. Brad Sherman (D-Calif.), who represents the heavily damaged Pacific Palisades area of Los Angeles, accused Trump of inappropriately halting funds that had been approved by Congress.They dont know whether theyve got a place to sleep, Sherman said of the thousands of fire victims staying in hotels and counting on FEMA to pay the bill.I know that Americans are frustrated with government, Sherman said. But throwing a monkey wrench in it is bad and hitting fire victims with the monkey wrench over the head is worse.Sen. Thom Tillis (R-N.C.) said, I just can't imagine they're going to tap the brakes on immediate disaster aid. If you're talking about subsequent resiliency funding, those sorts of things, I could see where the delay may make sense to figure out how to spend it.Households likely not affectedAlthough FEMA reimbursement to states appears to be on hold, the agency is likely to continue to give households affected by disasters small amounts of aid for emergency expenses.Assistance that is going directly to individuals will not be impacted by this pause, White House press secretary Karoline Leavitt told reporters Tuesday. As examples, Leavitt pointed to payments through Social Security, Medicare and welfare programs.FEMA has given nearly 24,000 households in Southern California an average of $2,150 in aid and has been approving thousands of applications every day since Trump took office, FEMA records show.Many Los Angeles fire survivors are housekeepers, landscapers and nannies who lost their jobs and homes because of the blazes, said Joseph Toms McKellar, executive director at PICO California, a faith-based community organizing network.These are the kind of desperate, sort of immediate needs that people have for just direct cash aid, McKellar said. What we need right now is not more chaos but compassion.The broader White House review of federal grant programs could permanently affect FEMA disaster aid to states and individuals. Both have been modified over the years to comply with executive orders concerning equity and environmental justice that Trump revoked last week.The Biden administration revised FEMAs individual assistance program to help minority households qualify. FEMA expanded the list of documents that can be used to prove residency, largely to help Black people in the South who did not have deeds to inherited property because their ancestors had been excluded from the legal system.FEMA also gives extra scrutiny to rebuilding projects that may result in disproportionately high and adverse effects to low income and minority populations. The scrutiny aims to comply with a landmark executive order by President Bill Clinton in 1994 to protect disadvantaged communities. Trump revoked the Clinton order last week.In addition, annual grants that FEMA awards through national competitions could face revision following the White House review. FEMAs largest grant program Building Resilient Infrastructure and Communities plans to distribute $750 million this year for state and local projects that offer protection against natural disasters.FEMAs scoring system, developed under President Joe Biden, prioritizes projects that help disadvantaged communities based on demographics and environmental and health conditions.Reprinted from E&E News with permission from POLITICO, LLC. Copyright 2025. E&E News provides essential news for energy and environment professionals.