Phasing Out FEMA: 10 States That Could Lose the Most

Big changes could be on the way for the Federal Emergency Management Agency (FEMA).

President Donald Trump said he plans to start phasing out FEMA after the 2025 hurricane season, leaving more of the financial recovery to individual states. The decision could have major ramifications for homeowners living in areas with extreme weather.

One of FEMA’s roles is to provide recovery funds to residents and local governments following natural disasters. The agency has paid out more than $32 billion in aid for disasters that took place from 2020 through 2024.^[1] Overhauling or eliminating FEMA could mean less federal disaster relief, with the president saying he wants to give out less money.^[2]

States that are already struggling with high home insurance costs could see a financial squeeze if they have less access to federal aid. Homeowners and insurers may have to absorb more of the financial risk — insurers often raise premiums to align with heightened risk.

Florida and Louisiana, which have the highest average home insurance rates in the country, have benefited the most from FEMA relief, receiving nearly $16 billion in aid from 2020 to 2024.

Insurify analyzed disaster relief spending in each state to identify where slashing FEMA recovery funding would have the largest impact, using data from the Disaster Dollar Database by the Carnegie Endowment for International Peace.

FEMA Disaster Relief by State (2020-2024)

State	Relief total
Alaska	$168,814,304
Alabama	$561,444,053
Arkansas	$139,780,065
Arizona	$9,106,330
California	$1,642,291,116
Colorado	$115,422,642
Connecticut	$79,148,308
Delaware	$9,019,791
Florida	$7,968,179,058
Georgia	$1,086,960,962
Hawaii	$733,669,644
Iowa	$325,200,163
Idaho	$16,146,183
Illinois	$609,749,678
Indiana	$16,431,722
Kansas	$25,431,529
Kentucky	$996,872,769
Louisiana	$7,918,807,497
Massachusetts	$32,038,576
Maryland	$14,571,102
Maine	$113,598,513
Michigan	$732,844,088
Minnesota	$91,803,553
Missouri	$139,531,649
Mississippi	$409,401,272
Montana	$64,076,976
North Carolina	$1,060,161,540
North Dakota	$107,583,650
Nebraska	$50,740,493
New Hampshire	$35,409,124
New Jersey	$650,182,947
New Mexico	$253,623,897
Nevada	$9,702,931
New York	$1,488,026,915
Ohio	$3,736,287
Oklahoma	$263,149,298
Oregon	$698,728,954
Pennsylvania	$238,550,019
Rhode Island	$35,763,691
South Carolina	$401,844,330
South Dakota	$56,219,986
Tennessee	$589,236,531
Texas	$1,872,194,413
Utah	$50,956,076
Virginia	$235,662,066
Vermont	$266,114,301
Washington	$217,206,390
Wisconsin	$5,107,372
West Virginia	$67,545,056
Wyoming	$950,375

Source: Insurify analysis of Disaster Dollar Database, Carnegie Endowment for International Peace

Key findings

• FEMA distributed about $32.7 billion in disaster aid to states from 2020 to 2024, with just under half ($15.9 billion) going to Louisiana and Florida.

• Six of the 10 states that received the most FEMA relief are in the South. FEMA designated nearly two-thirds of disaster dollars, $21.1 billion, toward hurricane relief.

• Wyoming, Ohio, and Wisconsin are the least dependent on FEMA disaster aid.

• In the 10 states that receive the most FEMA disaster relief, annual home insurance costs are 56% higher than the national average ($5,091 vs. $3,259).

• The states that President Trump won in the 2024 election rely more on FEMA disaster relief. About 78% of relief funds from 2020 to 2024 disasters went to states he carried.

10 states that have received the most FEMA disaster assistance

When a disaster strikes, local and state officials are the first to get involved in recovery efforts. If the damage exceeds the community’s resources, officials can request a preliminary damage assessment to prove that the scope of the disaster merits federal aid. From there, the governor can request a federal disaster declaration. It’s up to the president to review and approve the disaster declaration, getting FEMA involved in the recovery process.^[3]

In recent years, Gulf Coast states have been the biggest beneficiaries of FEMA disaster relief due to the region’s frequency of hurricanes. But other states, like Michigan and Oregon, have also received hundreds of millions in funding.

Cutting disaster relief to states could disproportionately affect areas that supported the president in the 2024 election. The three states that received the most FEMA aid in the past five years each voted for Trump. In total, 78% of all FEMA disaster relief funds in that time went to states that swung his way — $25.4 billion out of $32.7 billion.

1. Florida

• FEMA disaster relief (2020–2024): $8 billion

• Projected average home insurance cost (end of 2025): $15,460

Florida has benefited the most from FEMA disaster aid in recent years. In 2024, two major hurricanes, Helene and Milton, hit the state, resulting in about 284,000 home insurance claims and more than 1 million applications for FEMA assistance. Those claims will likely result in some higher premiums for a state that already has the highest average cost of home insurance in the country. For 2025, researchers estimate a 35% probability of a major hurricane affecting the state.

Flooding causes much of the financial damage from hurricanes, and home insurance doesn’t cover flooding. More than one-third of all policies with the National Flood Insurance Program, which FEMA administers, are in Florida.

2. Louisiana

• FEMA disaster relief (2020–2024): $7.9 billion

• Projected average home insurance cost (end of 2025): $13,937

Since 2020, only Florida has received more FEMA disaster aid than Louisiana. The state’s geography makes it extremely vulnerable to hurricanes, the most expensive type of natural disaster. Hurricane Ida, which struck in 2021, resulted in nearly $4.3 billion in FEMA recovery aid to residents, local governments, and non-profits — the highest amount tied to an individual disaster from 2020 to 2024.

Some of that FEMA disaster assistance goes to homeowners who are uninsured or underinsured and had their homes rendered uninhabitable. Insurance affordability is already a glaring issue in the state, which has the second-highest home insurance rates in the country. Still, some homeowners may be able to save on insurance costs by taking advantage of the state’s home-fortification program, which provides grants of up to $10,000 for certain wind-resistant roof upgrades.

3. Texas

• FEMA disaster relief (2020–2024): $1.9 billion

• Projected average home insurance cost (end of 2025): $6,522

Texas has received about $2 billion in disaster aid since 2020, and that doesn’t include the large-scale flooding on July 4 that took more than 100 lives and left many others missing in central Texas.^[4] Meteorologists said four months’ worth of rain fell in hours, causing a 27-foot wall of water to rush down the Guadalupe River.^[5] Trump declared the event a major disaster, and FEMA has opened relief applications for residents of Kerr County.

Analysts from the National Risk Index have reported that Texas has the highest expected losses from river flooding of any state. It also ranks highest for expected losses from tornadoes and second-highest for expected losses from hurricanes.

In 2024, Hurricane Beryl caused widespread wind damage, including 50 tornadoes, and millions of power outages. The storm led to more than 1 million applications for FEMA assistance, and the agency allocated about $1 billion to residents, governments, and non-profits.

In 2025, Texas has about a 19% chance of a major hurricane, the second-highest probability behind Florida, according to Colorado State University researchers. The state’s severe weather helps drive its expensive home insurance premiums, which cost about twice the national average.

4. California

• FEMA disaster relief (2020–2024): $1.6 billion

• Projected average home insurance cost (end of 2025): $2,930

Californians received about $1.6 billion in FEMA disaster aid from 2020 to 2024. That doesn’t include the January 2025 fires in Los Angeles County that destroyed more than 16,000 homes. FEMA continues to update its relief figures for the Palisades and Eaton fires, stating in June that it and its partners have provided about $3 billion in assistance.^[6] Those fires resulted in more than 261,000 applications for FEMA aid.

Looking ahead, Trump’s comments on phasing out FEMA after hurricane season — which ends Nov. 30 — could leave Californians with less federal help at the start of the following fire season.

The 2025 wildfires rocked the state’s home insurance market, causing massive losses for insurers, who, in turn, are attempting to raise insurance premiums to avoid financial turmoil. For example, State Farm, California’s largest home insurer, received approval for a 17% rate hike from state regulators in May and has since asked for another 11% increase.

Insurify projects that the average cost of home insurance in California could rise 21% by the end of 2025. Still, some homeowners in California can lower their premiums by participating in the Safer from Wildfires program, which requires insurers to offer discounts to residents who take specific fireproofing measures.

5. New York

• FEMA disaster relief (2020–2024): $1.5 billion

• Projected average home insurance cost (end of 2025): $2,855

Despite being relatively far north, New York’s position on the coast makes it somewhat vulnerable to hurricanes. Hurricane relief makes up the majority of the disaster aid that FEMA has sent to New Yorkers in the 2020s. Hurricane Isaias, sometimes known as Tropical Storm Isaias, in 2020 resulted in about $785 million in FEMA public assistance grants for New York.

The following year, remnants of Hurricane Ida damaged more than 33,000 buildings, leading to about 89,000 requests for individual housing assistance from FEMA.^[7]

Despite disaster risks, New Yorkers still benefit from home insurance costs below the national average. Insurers in the state have been able to maintain a relatively low loss ratio, meaning they face less financial pressure to raise rates. Additionally, insurers may provide discounts to homeowners who add protective features like hurricane shutters or laminated glass.

6. Georgia

• FEMA disaster relief (2020–2024): $1.1 billion

• Projected average home insurance cost (end of 2025): $3,826

Georgia doesn’t have as much coastline as most Gulf Coast states, but it still suffers high losses from hurricanes and tropical storms. The majority of the state’s FEMA aid since 2020 has come in response to Hurricane Helene. As of June, the agency had allocated $914 million in disaster relief to Georgia residents, governments, and non-profits for this storm.

In addition to hurricanes, Georgia ranks among the top 10 states for expected financial losses from hail and tornadoes, according to the National Risk Index. In January 2023, a line of thunderstorms in north and central Georgia generated at least 14 tornadoes. One reached speeds of 155 mph, strong enough to pick up one resident who had taken shelter in the bathtub, destroying the walls and tossing him and the tub into nearby woods.^[8] Those storms led to about $42 million in FEMA disaster aid.

Hurricane threats and other storm-related risks help explain why Georgia homeowners pay about $300 more per year for home insurance compared to the national average.

7. North Carolina

• FEMA disaster relief (2020–2024): $1.1 billion

• Projected average home insurance cost (end of 2025): $3,432

Hurricane Helene recovery efforts account for the majority of FEMA aid that North Carolina has received since 2020. As of June, FEMA had allocated $936 million in grants for North Carolina in response to the 2024 storm. The hurricane caused up to 30 inches of rain and the worst flooding in western North Carolina in more than 100 years, according to the National Centers for Environmental Information.

Additionally, about 1% of structures in Asheville’s Buncombe County are covered by flood insurance, meaning many people had to pay out of pocket to cover damages.^[9]

On the state’s coast, FEMA’s National Risk Index rates 13 counties as at high risk of hurricane damage. Researchers say the state has a 9% chance of a major hurricane in 2025. Some coastal homeowners covered by the North Carolina Insurance Underwriting Association are eligible for grants of up to $8,000 for home-hardening under the Strengthen Your Roof program.^[10]

8. Kentucky

• FEMA disaster relief (2020–2024): $997 million

• Projected average home insurance cost (end of 2025): $3,623

Homeowners in Kentucky pay above the national average cost for home insurance, in part due to severe weather risks. Tornadoes and floods have resulted in hundreds of millions in FEMA funding for Kentuckians over the past five years.

Starting in July 2022, severe storms led to flooding and landslides that carried away homes, according to the National Weather Service. That incident resulted in $464 million in FEMA disaster relief for Kentuckians. Home insurance typically covers tornadoes but not floods. In December 2021, a violent tornado outbreak pushed winds to about 190 mph, causing 93 deaths across multiple states in the region. FEMA assistance for Kentuckians ended up at $177 million.

In 2026, the Kentucky Department of Insurance expects to start taking applications for the Strengthen Kentucky Homes Program, which would require insurers to provide premium discounts for properties that meet more weather-resistant construction standards. That incentive could offset potential rate hikes for some homeowners. Insurify projects that, on average, home insurance costs in the state will rise 10% by the end of 2025, from $3,294 to $3,623.

9. Hawaii

• FEMA disaster relief (2020–2024): $734 million

• Projected average home insurance cost (end of 2025): $1,808

In August 2023, Maui was struck by the deadliest fire in the U.S. in more than a century, causing at least 100 deaths and destroying thousands of homes.^[11] The disaster resulted in $718 million in FEMA relief, with more than 17,000 residents requesting assistance. That year, Hawaii insurers had the highest loss ratio in the country, paying out nearly $400 in claims for every $100 received in premiums, according to a P&C Specialist analysis of S&P data.

In the years leading up to the disaster, Hawaii saw a 216% increase — the third-highest nationwide — in the share of properties that home insurers declined to continue covering. Insurify projects Hawaii will see average home insurance costs climb 17% by the end of 2025, the fourth-largest increase in the U.S.

10. Michigan

• FEMA disaster relief (2020–2024): $733 million

• Projected average home insurance cost (end of 2025): $3,290

FEMA has distributed disaster relief funds for three incidents in Michigan since 2020. In August 2023, thunderstorms in lower Michigan caused severe flooding and multiple tornadoes, destroying homes and vehicles. FEMA received about 147,000 applications for individual assistance and approved 79% of them, distributing $436 million in response to the incident.

Hail is another thorn for Michigan homeowners, with a 51% increase in incidents from 2019 to 2024.^[12] The state doesn’t require insurers to provide discounts to homeowners who strengthen their homes against severe weather. But some insurers, such as State Farm, offer discounts for hail-resistant roofing.^[13]

5 states that rarely rely on FEMA disaster relief

Reliance on FEMA disaster assistance varies significantly by state, with most of the funding highly concentrated at the top of the list. Since 2020, the median state has received about $154 million in relief. Looking at the five states least dependent on FEMA assistance also turns up useful insights, with each maintaining lower-than-average home insurance rates.

1. Wyoming

• FEMA disaster relief (2020–2024): $950,375

• Projected average home insurance cost (end of 2025): $2,424

No state is immune to severe weather, but Wyoming is about as secure as it gets. While some states have received billions in disaster aid since 2020, Wyoming has received less than $1 million. Most of its FEMA aid came in response to 2023 flooding that destroyed two homes and damaged 169 others, according to a preliminary report.

Wyoming’s geography and smaller, less dense population mitigate the chances of a disaster with grave financial consequences. The home insurance market is relatively stable, with homeowners in Wyoming paying about $1,000 less for annual coverage compared to the national average.

2. Ohio

• FEMA disaster relief (2020–2024): $3.7 million

• Projected average home insurance cost (end of 2025): $2,006

Major natural disasters rarely strike in Ohio. In fact, FEMA has sent nearly 200 times more disaster aid to neighboring Michigan than to Ohio in the past five years. The National Risk Index rates each of Ohio’s counties as either moderate or low for expected losses from natural hazards.

The disaster that poses the most financial damage to Ohio homeowners is tornadoes. FEMA has provided disaster aid to Ohio just once since 2020. That was in response to March 2024 tornadoes that led to about 1,300 applications for disaster relief funds.

3. Wisconsin

• FEMA disaster relief (2020–2024): $5.1 million

• Projected average home insurance cost (end of 2025): $2,050

Wisconsin is another Midwest state that’s relatively insulated from natural disasters. Hail, wind, and lightning are concerns for homeowners, but they haven’t inflicted as much damage in Wisconsin as in other states. The state has received FEMA relief for one disaster in recent years, when storms and flooding affected three counties, including Milwaukee, along the Lake Michigan coast.

Homeowners in the state generally benefit from less expensive home insurance premiums. By the year’s end, Insurify projects the typical Wisconsin homeowner will pay about $1,500 less for home insurance compared to the national average.

4. Delaware

• FEMA disaster relief (2020–2024): $9 million

• Projected average home insurance cost (end of 2025): $1,693

Like many states on the Atlantic Coast, Delaware has some exposure to hurricane damage, but not nearly to the extent of other coastal states. FEMA has provided disaster relief to Delaware twice since 2020 in response to hurricanes Isaias and Ida, but the losses in Delaware were a fraction of those in nearby states.

With a lower risk of catastrophic losses, insurers are able to charge some of the lowest premiums in the country. The typical Delaware homeowner pays about half the national average cost of insurance.

5. Arizona

• FEMA disaster relief (2020–2024): $9.1 million

• Projected average home insurance cost (end of 2025): $3,240

Arizona hasn’t had to rely on FEMA to the same extent as other Western states. Since 2020, only 835 people and households in Arizona have applied for disaster relief, compared to more than 80,000 in California and about 24,000 in Oregon. Most Arizona counties are considered high-risk for wildfire, but that risk hasn’t led to the same extent of damage as in other Western states.

About half of the relief Arizona has received ($5.3 million) came in response to rains from the 2021 monsoon season, which flooded homes, businesses, and roadways.^[14] Despite fire and flood exposure, Arizona has maintained lower-than-average home insurance premiums.

Hurricanes account for most disaster relief spending

Hurricanes are the clear standout when examining which types of natural disasters have caused the most destruction — and required the most federal assistance. Since 2020, nearly two-thirds of FEMA relief for natural disasters, about $21.1 billion, has come in response to hurricanes.

The six most expensive disasters for FEMA since 2020 were all hurricanes. The disaster that led to the most FEMA funding in that timespan was Hurricane Ida in Louisiana, which ushered in more than 804,000 applications for aid in a state with a population of 4.7 million.

Year	Event	FEMA Disaster Relief
2021	Louisiana Hurricane Ida	$4,284,009,031
2022	Florida Hurricane Ian	$3,662,901,327
2020	Louisiana Hurricane Laura	$3,219,832,460
2024	Florida Hurricane Milton	$1,924,506,321
2024	Florida Hurricane Helene	$1,315,694,766
2024	Texas Hurricane Beryl	$1,025,661,585
2024	North Carolina Tropical Storm Helene	$936,298,837
2024	Georgia Hurricane Helene	$913,777,508
2020	New York Tropical Storm Isaias	$784,975,397
2023	Hawaii Wildfires and High Winds	$718,100,183

*Dollar amounts are subject to increase, as FEMA updates disaster relief figures on a rolling basis.

For hurricane season 2025, researchers at Colorado State project “above-normal” activity, with a 51% chance of at least one major hurricane landfall. The National Hurricane Center defines a major hurricane as Category 3 or higher, which means winds over 110 mph.

Florida and Texas residents use nearly half of individual and household disaster grants

Some FEMA grants go to local governments and non-profits, while others go to individual residents. Since 2020, FEMA has allocated $10.2 billion for individual and household (IHP) grants across 50 states. These funds go directly to uninsured or underinsured people affected by disasters to cover housing costs, which can include home repair or replacement if inspectors consider the home uninhabitable.

Residents in two states, Florida and Texas, account for 48% of approved IHP applications. Of the $10.2 billion in approved grants, residents in Florida, Texas, and Louisiana have received more than half ($6 billion). To add perspective, Louisiana residents make up just 1.4% of the U.S. population but 18% of eligible aid applications. Louisianans are about 100 times more likely than residents of the median state to receive FEMA disaster aid.

Since 2020, FEMA has approved just under 3.8 million IHP relief applications. Because IHP grants are for the uninsured or underinsured, they provide insight into areas of the country where a lack of adequate insurance is having the biggest financial consequences.

Most IHP relief goes to Gulf Coast states, which are disproportionately affected by hurricanes, but residents in other states have relied heavily on FEMA aid, as well. Michigan and Illinois each tallied more than 100,000 approved IHP applications from 2020 to 2024.

Top 10 States With the Most Eligible IHP Applications	Eligible IHP Applications (2020-2024)	IHP Relief (2020-2024)	State Population	Estimated Share of Population Receiving IHP Grants
Florida	932,399	$2,961,325,368	21,538,187	4.33%
Texas	896,989	$1,401,896,437	29,145,505	3.08%
Louisiana	685,989	$1,647,974,613	4,657,757	14.73%
South Carolina	251,952	$315,742,605	5,118,425	4.92%
Georgia	223,591	$381,036,173	10,711,908	2.09%
Michigan	176,092	$664,091,592	10,077,331	1.75%
North Carolina	160,614	$453,886,653	10,439,388	1.54%
Illinois	142,100	$585,514,967	12,812,508	1.11%
New Jersey	45,019	$255,476,135	9,288,994	0.48%
Pennsylvania	44,014	$136,186,918	13,002,700	0.34%

Where disaster funding could come from in a world without FEMA

The White House hasn’t announced specifics regarding FEMA reforms. In June, the president told reporters, “I’d say after the hurricane season, we’ll start phasing it out.”

“We’re going to give out less money,” Trump said. “We’re going to give it out directly. It’ll be from the president’s office. We’ll have somebody here, could be [the Department of] Homeland Security.”

In April, the president expanded a council designed to review FEMA’s ability to “capably and impartially” address disasters, though the council hasn’t yet released conclusions on what FEMA reforms could entail. If FEMA indeed begins to distribute less money, other sources of disaster relief funding may have to take on a larger role.

Disaster response has long been led locally and managed by states, but FEMA supports by providing additional federal resources and coordination. Some researchers say that very few states would have enough money set aside to fill in the gap.^[15]

“The loss of FEMA would mean less resources for recovery, as well as less coordination across various agencies,” said Jeffrey Schlegelmilch, director of the National Center for Disaster Preparedness (NCDP) at Columbia University. “In short, it would take longer and be a lot messier. State agencies would take up more of the burden but would have trouble with major disasters.”

States with fewer resources may find themselves more reliant on non-profits and community organizations. Congress can also approve disaster aid on an ad-hoc basis, but doing so could make responses slower and more subject to political conflicts.^[16]

Schlegelmilch said reforms are necessary to re-envision emergency management in the 21st century, but that the proposals thus far aren’t sufficient for responding to increasing disasters.

“This looks more like reducing federal leadership in disasters, which, in the face of more complex and compounding disasters, is the opposite of what we need,” he said.

At the homeowner level, scaling back FEMA would make the already risky decision of underinsuring one’s property even more hazardous. Much of the current FEMA disaster funding is designed to cover homeowners who don’t have enough insurance to meet their needs. If those funds get cut, uninsured property owners could end up without a home and any compensation. Additionally, critics of FEMA cuts in the U.S. Senate have said that the changes will increase property insurance costs.^[17]

Tips: How homeowners can prepare for disasters in a post-FEMA future

Maintaining sufficient home insurance, flood insurance, and other protections would be even more critical in a world with less FEMA relief funding. Homeowners should take this opportunity to research disaster risks in their state through resources like the National Risk Index or the NCDP U.S. National Hazards Index. From there, they should re-examine their policy details to ensure they include necessary and recommended coverages.

“With the potential for scaling back of FEMA funds, among others, insurance will be more important than ever,” Schlegelmilch said.

Home insurance costs are already rising faster than inflation. It isn’t yet clear if or to what extent FEMA cuts could encourage insurers to push more of the financial risk onto homeowners via rate hikes. But homeowners can take steps to ensure they get adequate coverage at the best possible price by comparing home policies from different insurers.

Homeowners should check with their insurers and state departments of insurance to ensure they’re taking advantage of discounts for fortifying their homes against severe weather when eligible. Depending on the jurisdiction and insurer, homeowners may have access to matching funds or premium discounts for these measures, such as installing a more wind-resistant roof in hurricane areas or clearing fast-burning vegetation from around their home in wildfire-prone areas.

Methodology

Data on disaster relief aid and applications come from the Carnegie Endowment for International Peace’s Disaster Dollar Database. Data is current as of June 1, 2025, though relief figures are subject to rise, as FEMA updates spending data on a rolling basis. This report uses two types of FEMA disaster relief: funds for public assistance and funds for the Individuals and Households Program. Insurify included only natural disaster incidents that took place from 2020 through 2024 in its analysis. For more methodological details on average home insurance rates by state and end-of-year insurance cost projections, visit the Insuring the American Homeowner 2025 report.

For media inquiries or questions about our study, please contact the author here.