Restructuring FEMA
On May 8, the House Committee on Transportation and Infrastructure released a draft bill to dramatically reform the Federal Emergency Management Agency (FEMA), which coordinates federal disaster aid and assistance programs at all levels of government. The Fixing Emergency Management for Americans (FEMA) Act of 2025 proposes several substantive changes to the agency, including but not limited to:
- Establishing FEMA as a Cabinet-level agency that reports directly to the President;
- Replacing the traditional reimbursement model with a fixed-cost, project-based model to provide funding upfront;
- Authorizing alternative procedures for qualified “small disasters” that delegate more authority and flexibility to state and local governments and reduce federal oversight; and
- Giving the President the power to make grants to local governments for the repair, restoration, reconstruction, or replacement of public facilities damaged or destroyed by a major disaster.
The Committee released the bill as a discussion draft to solicit feedback from stakeholders before formally introducing any legislation. The stated purpose of FEMA Act of 2025 is to speed up assistance delivery by minimizing bureaucracy. The bill could dramatically alter the nature and availability of federal disaster aid for communities.
On May 22, GMA had the opportunity with other state leagues to meet with Brian Cavanaugh, Office of Management and Budget (OMB) Associate Director for Homeland Security, to discuss what to expect with the future of FEMA, the status of OMB’s review of federal programs for alignment with the Administration’s priorities, and potential reductions in regulatory burdens under consideration. Specifically, GMA discussed the status of FEMA reimbursements to many of Georgia’s most impacted cities from damage claims associated with Hurricane Helene. GMA offered to convene a meeting in Georgia with impacted cities, to include all agencies involved in claims review and reimbursement to assist cities with resolving this impact to their finances.
Reauthorization of the Surface Transportation Bill
The Infrastructure Investment and Jobs Act expires in 2026, and Congress is currently working on a reauthorization bill. GMA’s Larry Hanson facilitated a National League of Cities (NLC) meeting with Jack Ruddy, Staff Director, House Transportation Infrastructure Committee for Chairman Sam Graves (R-MO). The House Transportation Committee is starting the bipartisan process to reauthorize the transportation bill before it expires in 2026. Before the end of May, every member of Congress will submit their priorities for the next bill. GMA expressed a strong desire to see revisions to the program to allow for direct, formula-based funding to local governments, in addition to competitive grants. GMA believes local governments can deliver transportation projects in a timelier and more cost-efficient manner, with fewer regulations and more flexibility to meet local needs.
Municipal Bonds
GMA has learned that, through the advocacy of Georgia city officials, NLC members, and others, current legislation passed by the House and now in the Senate does not affect the tax-free status of municipal bonds. GMA and our city officials have actively participated in these advocacy efforts by sharing how valuable tax-free municipal bonds are for Georgia cities in financing capital projects. GMA will continue to monitor this issue and update members as the legislation progresses.