The Federal Emergency Management Agency

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The Federal Emergency ManagementAgency (FEMA) is the lead federal agency for disaster preparedness, response, and relief. FEMA’s budget fluctuates from year to year, but spending has trended sharply upwards in recent decades. The agency spent $22 billion in fiscal 2013 and $10 billion in fiscal 2014.The main activity of FEMA is distributing aid to individuals and state and local governments after natural disasters, such as hurricanes, floods, and earthquakes. Inaddition, the agency provides ongoing grants to the statesfor disaster preparedness, and it operates the National Flood Insurance Program (NFIP).FEMA’s response to some major disasters has been slow, disorganized, and profligate. The agency’s actions have sometimesbeen harmful, such as when it has blocked the relief efforts ofother organizations. FEMA’s dismal response to Hurricane Katrinain 2005 dramatized the agency’s bureaucratic dysfunction.FEMA’s grants for disaster preparedness are known forwastefulness. As for the NFIP, its insurance subsidies arespurring development in flood-prone areas, which in turnis increasing the damage caused by floods. The NFIP alsoencourages an expansion of federal regulatory control over local land-use planning.Federalism is supposed to undergird America’s system of handling disasters, particularly natural disasters. State, local, and private organizations should play the dominant role. Looking at American history, many disasters havegenerated large outpourings of aid by individuals, businesses, and charitable groups.Today, however, growing federal intervention is underminingthe role of private institutions and the states in handling disasters. Policymakers should reverse courseand begin cutting FEMA. Ultimately, the agency should be closed down by ending aid programs for disaster preparedness and relief and privatizing flood insurance.

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The Federal Emergency Management
Agency (FEMA) is the lead federal agency for disaster preparedness, response, and relief. FEMA’s budget fluctuates from year to year, but spending has trended sharply upwards in recent decades. The agency spent $22 billion in fiscal 2013 and $10 billion in fiscal 2014.
The main activity of FEMA is distributing aid to individuals and state and local governments after natural disasters, such as hurricanes, floods, and earthquakes. In
addition, the agency provides ongoing grants to the states
for disaster preparedness, and it operates the National Flood Insurance Program (NFIP).
FEMA’s response to some major disasters has been slow, disorganized, and profligate. The agency’s actions have sometimes
been harmful, such as when it has blocked the relief efforts of
other organizations. FEMA’s dismal response to Hurricane Katrina
in 2005 dramatized the agency’s bureaucratic dysfunction.
FEMA’s grants for disaster preparedness are known for
wastefulness. As for the NFIP, its insurance subsidies are
spurring development in flood-prone areas, which in turn
is increasing the damage caused by floods. The NFIP also
encourages an expansion of federal regulatory control over local land-use planning.
Federalism is supposed to undergird America’s system of handling disasters, particularly natural disasters. State, local, and private organizations should play the dominant role. Looking at American history, many disasters have
generated large outpourings of aid by individuals, businesses, and charitable groups.
Today, however, growing federal intervention is undermining
the role of private institutions and the states in handling disasters. Policymakers should reverse course
and begin cutting FEMA. Ultimately, the agency should be closed down by ending aid programs for disaster preparedness and relief and privatizing flood insurance.

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