Trump-Appointed Council Proposes Sweeping FEMA Structural Reforms

A 12-person review council appointed by Donald Trump proposed a fundamental overhaul of the Federal Emergency Management Agency (FEMA) on May 7, 2026. The recommendations aim to shift disaster preparedness and recovery responsibilities from the federal government to states, tribes, and territories over the next two to three years.

Key proposals include replacing the current reimbursement model with upfront lump-sum payments to states within 30 days of a disaster. The council suggests implementing parametric triggers based on disaster intensity, such as wind speed or flood depth, and raising the monetary threshold for federal disaster declarations by over 50% to reserve aid for truly significant events. Additionally, the council recommends shrinking the National Flood Insurance Program by transferring policies to the private market and streamlining survivor assistance into a one-time payment limited to those with uninhabitable homes.

The final report, approved at a meeting in Washington, omits a December draft's proposal to halve the FEMA workforce, instead suggesting a rebalancing of staff between regional offices and headquarters to reduce bureaucratic bloat. These recommendations follow a period of instability for FEMA, including the departure of over 5,000 employees and President Trump's criticism of the agency's 2024 response to Hurricane Helene. Because at least half of the proposed changes involve structural and financial shifts, many will require congressional legislation to be implemented.