Report: FEMA Plans $1B in Cuts to Emergency Preparedness Grants

For months, Maryland’s emergency managers have warned that federal disaster support is on shaky ground. Now, newly leaked FEMA memos confirm their fears, revealing a sweeping plan to gut nearly $1 billion in preparedness grants that counties rely on to train first responders, upgrade warning systems, and protect high-risk infrastructure.

As previously reported on Conduit Street, local emergency managers have been sounding the alarm over stalled FEMA funding and shifting priorities.

Now, internal FEMA memos obtained by CNN confirm those fears, laying out a plan to slash nearly $1 billion from the very grants that counties and first responders depend on to prepare for disasters and counter terror threats.

According to CNN, the memos reveal a sweeping proposal by the Trump Administration to eliminate funding for more than half of FEMA’s emergency management and homeland security grant programs. These programs support core community preparedness: training first responders, modernizing warning systems, protecting infrastructure, and securing high-risk areas, including ports and transit systems.

The proposal — spearheaded by Acting FEMA Administrator David Richardson and approved by Homeland Security Secretary Kristi Noem — frames the cuts as a return to FEMA’s “core mission.” However, FEMA’s own internal documents acknowledge the risks: weakened disaster readiness, increased vulnerability to terrorist attacks, and reduced capacity for responding to wildfires and floods.

Among the most critical programs on the chopping block:

Urban Areas Security Initiative (UASI): Over $500 million annually to help major cities respond to catastrophic threats.
Next Generation Warning System: A modernization effort for the nation’s public alert infrastructure, which was already paused earlier this year.
Transportation and terrorism prevention grants: Including programs protecting ports, rail, and cities hosting high-profile events like the World Cup and Super Bowl.

FEMA’s halt on selecting new grant recipients has already created chaos. States and counties still haven’t received Notices of Funding Opportunities (NOFOs) for fiscal year 2025, even though Congress allocated over $4 billion for preparedness grants. Local emergency managers warn that without those funds obligated by September, they will expire, compounding the uncertainty.

This news comes on the heels of FEMA abruptly suspending the Building Resilient Infrastructure and Communities (BRIC) program — another critical funding stream, triggering lawsuits from 20 states and leaving counties in limbo.

As previously reported on Conduit Street, Maryland is preparing to appeal the federal government’s decision to deny disaster assistance for Western Maryland after catastrophic flooding in May caused tens of millions of dollars in damage.

Maryland counties risk losing valuable tools to prepare for coastal storms, cyberattacks, and large-scale emergencies. The cuts could disrupt coordination with regional agencies, reduce training and equipment for first responders, and delay long-term planning projects aimed at protecting vulnerable populations.

FEMA Fallout: Facing Federal Funding Flux

The breakdown in federal coordination raises serious questions about the future of emergency preparedness—and how counties can maintain resilience when national support becomes uncertain.

At this year’s MACo Summer Conference, join local emergency leaders for the session, “Fallout: Facing Federal Funding Flux.”

The panel will examine FEMA’s recent communication clampdown, stalled grant programs, and broader shifts in federal disaster policy. Attendees will hear directly from county experts about the operational and fiscal impacts and explore practical steps to safeguard local readiness, tap into alternative resources, and advocate for stronger federal partnerships.

MACo’s Summer Conference, “Resilient. Responsive. Ready.,” is August 13–16, 2025, at the Roland Powell Convention Center in Ocean City, Maryland. This year’s theme is “Funding the Future: The Evolving Role of Local Government.” For more information, please visit the conference website.

Learn more about MACo’s Summer Conference: