A new executive order shifts disaster preparedness responsibilities from the federal government to state and local governments, raising concerns about funding gaps, emergency response capacity, and long-term recovery efforts.
The order, signed by President Trump earlier this week, directs a review of infrastructure and risk policies, creates a National Risk Register, and calls for states and local governments to take a more significant role in disaster planning.
However, it provides no federal commitment to maintain financial or operational support, leaving counties with more substantial costs and administrative burdens.
Uncertain Future for Federal Disaster Funding
The executive order does not directly change FEMA’s cost-sharing structure, but, as previously reported on Conduit Street, ongoing federal discussions could reduce the federal role in disaster funding.
FEMA covers up to 75% of disaster costs, with state and local governments funding the remainder. Proposals would cut federal cost-sharing to 25% for smaller disasters, reserving the 75% match for only the most catastrophic events. These changes would force counties to absorb more significant costs, delaying recovery and diverting funds from other essential services.
Another proposal would raise the per-capita threshold for federal disaster declarations, making it harder for rural and lower-population jurisdictions to qualify for FEMA aid. Without federal relief, counties must rely on state funds, which remain inconsistent and limited, or shoulder the costs directly, increasing fiscal strain.
Local Preparedness Grants and Flood Insurance at Risk
The order’s impact extends beyond immediate disaster costs. FEMA preparedness grants could face cuts, which fund emergency response systems, personnel training, and infrastructure improvements. Reduced grant funding would weaken local disaster readiness, increasing risks for communities.
Proposed changes to flood insurance policy would also shift risk to counties. Replacing the National Flood Insurance Program (NFIP) with private insurance could lead to higher premiums and coverage gaps, increasing costs for residents and local governments.
Many counties rely on NFIP-backed policies to protect flood-prone properties, and shifting to private insurers raises concerns about affordability and access.
Maryland’s Disaster Recovery Resources Already Strained
Maryland established a State Disaster Recovery Fund to support counties when federal aid falls short. However, the fund lacks a dedicated revenue source and remains underfunded. Last year, mid-year budget cuts reduced the fund by 25%, leaving only $1.5 million available for future disasters.
In the 2025 Maryland General Assembly session, MACo supports HB 865 / SB 564, which aims to bolster Maryland’s disaster recovery framework by authorizing the transfer of funds from the Catastrophic Event Account to the State Disaster Recovery Fund when existing balances are insufficient.
With potential federal cost-sharing reductions, Maryland counties face even more significant financial strain in future disaster recovery efforts.
Counties Need Stronger Federal-State Partnerships
Counties serve as the first line of response and recovery, yet these policy shifts place greater responsibilities on local governments without new funding or structural support. Maryland’s counties, along with the Maryland Department of Emergency Management, will continue working to ensure disaster relief remains accessible and effective.
National organizations such as the National Association of Counties (NACo), the National Emergency Management Association (NEMA), and the International Association of Emergency Managers (IAEM) will play a critical role in these discussions.
Federal lawmakers must recognize that disaster response cannot fall solely on state and local governments without significant fiscal and operational consequences.
Stay tuned to Conduit Street for more information.
Previous Conduit Street Coverage
Proposed Disaster Relief Changes Would Overwhelm State and Local Budgets
