Hurricane Milton is expected to make landfall near Tampa Bay as a Category 3 storm Wednesday, Oct. 9. It’s forecast to bring over 6 feet of storm surge and more than 10 inches of rain. That wind and water could lead to billions of dollars in damages that federal government agencies may not have.
FEMA announced it has enough money for immediate response and recovery needs for Hurricane Helene, but Hurricane Milton will likely put another dent in the Disaster Relief Fund’s balance sheet.
As of Aug. 31, the Disaster Relief Fund had about $6.2 billion. President Biden said that’s not enough for long-term efforts.
“Without additional funding, FEMA would be required to forego longer-term recovery activities in favor of meeting urgent needs,” The president wrote in a letter to congressional leaders. “The Congress should provide FEMA additional resources to avoid forcing that kind of unnecessary trade-off and to give the communities we serve the certainty of knowing that help will be ongoing, both for the short- and long-term.”
House Speaker Mike Johnson, R-La., indicated Congress will not return until Nov. 12, after the election.
“Remember that before we left Washington, the day before Helene hit by the way, made landfall, Congress appropriated $20 billion additional dollars to FEMA so that they would have the immediate dollars they need to address the immediate needs,” Johnson said on Fox News Sunday, Oct. 6. “Then after that, Congress always takes its due approach of providing what is necessary.”
President Biden said the Small Business Administration’s disaster loan program will run out of funding in a matter of weeks, before Congress plans to reconvene.
“I warned the Congress of this potential shortfall even before Hurricane Helene landed on America’s shores,” President Biden wrote in the letter. “It is critical that Congress ensures that no critical disaster programs, such as the SBA disaster loan program, run out of funding during the Congressional Recess period.”
SBA loans help cover what FEMA and insurance do not. They’re available to homeowners, businesses, renters and nonprofit organizations within disaster areas. SBA makes clear the loans are for both personal and business use. They can even cover business expenses the owner would have been able to cover had the disaster not occurred.
If the SBA or FEMA run out of money, then storm victims could still apply for money they need to rebuild or repair, but they will not receive it.
