Kentucky Association of Counties

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Kentucky Association of Counties

Looming federal shutdown could impact critical disaster funding for counties

By Kayla Carter Smith, Policy Analyst
Government shutdown would delay replenishing of FEMA’s dwindling Disaster Relief Fund

As a federal government shutdown looms, funding to replenish FEMA’s Disaster Relief Fund has been put on hold. As a result of dwindling funds, FEMA implemented Immediate Needs Funding (INF) on August 29 which prioritizes life sustaining disaster response and delaying obligations for longer term work. 

In testimony provided to Congress this week, FEMA Administrator Deanne Criswell testified that FEMA has had to “pause obligations to over 1,000 Public Assistance projects across the country worth over $1.5 billion”.

This will impact counties still working to rebuild from recent disasters, including the 2021 tornado in west Kentucky and the 2022 historical flooding in eastern Kentucky. Counties rely on critical funding from FEMA’s public assistance program to provide financial support and assist with long term rebuilding after natural disasters.

The Biden administration has requested a $16 billion supplemental appropriation to replenish the Disaster Relief Fund. Congress is currently fighting the clock to pass a short-term funding bill to keep the government open beyond September 30, when funding for federal agencies will run out. The potential government shutdown would delay critical funding for the Disaster Relief Fund.

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