As hurricane season gets under way, North Carolina is preparing for the possibility that the Federal Emergency Management Agency could cut its help to states ravaged by storms.

What You Need To Know

  • An internal report by the N.C. Governor’s Office looks at impacts of a scaled-back FEMA

  • The report comes after a memo was obtained from the former acting FEMA administrator

  • The memo proposes making it harder for states to qualify for federal disaster assistance

A memo from former FEMA Acting Administrator Cameron Hamilton, obtained by CNN last month, proposed major changes that would make it much harder for states to qualify for federal disaster assistance.

CNN reported Hamilton sent the memo to an official at the White House Office of Management and Budget.

The memo proposes raising the threshold for states to qualify for public assistance, which would eliminate small disaster declarations.

It also proposes having the federal government pay no more than 75% of disaster recovery costs and having state and local governments pay the remaining 25%.

Seventy-five percent is the standard reimbursement rate, but it’s sometimes raised after especially devastating storms, like Hurricane Helene in North Carolina.

For months North Carolina was receiving 100% federal reimbursement for eligible debris removal costs after the storm, but recently FEMA reduced that maximum match to 90%. The state said that reductions could cost the state hundreds of millions of dollars.

The proposed changes outlined in the memo from Hamilton were apparently enough to cause concern in the North Carolina Governor’s Office because Spectrum News obtained an internal report from the office that plays out the potential costs to the state if those recommendations became reality.

The report said if those proposed changes went into effect it could jeopardize up to $2 billion in federal support just for Helene response efforts. And if those proposed changes had previously been in effect, numerous storms in the state, including Dorian and Fred, would not have received major disaster declarations, meaning no federal reimbursement money.

All of that could mean the state could be more on the hook for potential disaster recovery costs this coming hurricane season.

Spectrum News asked the governor’s office whether it’s reconfiguring its resources this hurricane season, given the proposed changes outlined in the memo. A spokesperson didn’t share specifics but said the memo points to preparation the governor’s office may be making with the hurricane season, including the need for more funding. 

Spectrum News reached out to FEMA and the Department of Homeland Security as to what may happen with these proposals from the former acting administrator, who was removed from the position, but didn’t hear back by deadline. FEMA is now led by a new acting administrator, David Richardson.

As CNN pointed out last month there is no indication FEMA is following any of the proposed changes by Hamilton, but it speaks to the uncertainty states face as the new hurricane season starts.

Even if the changes don’t go into effect, FEMA is going through major reforms so states are having to prepare for the uncertainty of what FEMA may look like this hurricane season. Florida Gov. Ron DeSantis recently alluded to the uncertainty around FEMA when he said, "I don't know what FEMA is going to look like this hurricane season. I know that's kind of in flux."

President Donald Trump's FEMA Review Council recently held its first meeting. The council is tasked with looking at potential changes to the agency. The size of FEMA's staff has been reduced since Trump took office.