State and local agencies prepare for state-centric disaster management

As a state official, are you and your local agencies prepared for a state-centric disaster response and recovery model?

In brief

• State and local governments rely heavily on federal disaster assistance. 
• State and local agencies can improve their readiness for a state-centric disaster management model, to better prepare for reductions in federal aid. 

Over the past decade, the increasing frequency and severity of disasters have resulted in persistently higher costs for disaster response and recovery. The damage caused by all major disasters over the last five years totaled over $746 billion, 75% of the previous decade’s total. Although state and local governments currently play a critical role in paying for disaster costs, they also rely extensively on assistance from federal agencies, such as the Federal Emergency Management Agency (FEMA) to prepare for and respond to major disasters. 

Key challenges for local governments

Federal relief throughout 2025 was characterized as unpredictable due to new grant rules, reduced FEMA staffing and ongoing litigation. Changes in funding, capacity, grant rules and contracts caused disruption and uncertainty for emergency management agencies nationwide. Some changes are listed below

Actions state and local governments can take now

While the Trump Administration and FEMA Council are still assessing the future role of federal emergency management, state and local governments should be aware of emerging themes and begin considering potential implications for local operations. Preparedness in this environment means thinking further upstream, planning for contingencies, and communicating with communities and organizations before the next event arrives or the weather begins to turn. 

State and local disaster response capabilities vary widely across the country, even within states at the local level. State agencies will benefit from assessing current operational, financial and administrative capabilities to confirm local governments can continue to meet their disaster response and recovery goals, especially if federal aid is reduced. Inaction expands inherent threats communities face during and after disaster events and increases the probability that local resources may become quickly overwhelmed, requiring supplemental funds for debris removal, emergency services, and rebuilding infrastructure like roads and public buildings.

States should conduct comprehensive assessments of preparedness and response capabilities to target gaps and identify improvements needed. Listed below are steps states should take to prepare