Trump task force recommends sweeping changes to FEMA — but not eliminating it - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Property and Casualty News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Property and Casualty News RSS Get our newsletter
Order Prints
May 7, 2026 Property and Casualty News
Share
Share
Post
Email

Trump task force recommends sweeping changes to FEMA — but not eliminating it

MARK BALLARD, The Advocate, Baton Rouge, La.The Advocate

WASHINGTON — President Donald Trump’s task force to recommend changes to FEMA approved a report Thursday that would not dismantle the disaster response agency — as some in the administration wanted — but would transfer many current federal tasks to the states, privatize flood insurance and release federal money to the states in the form of grants rather than reimbursements.

“Federal assistance should only be reserved for truly significant events that exceed state, local, tribal, territorial capacity and capability,” said Michael Whatley, a member of the President’s Council to Assess the Federal Emergency Management Agency and former chair of the Republican National Committee.

The council was charged to look deeply into how FEMA operates and make recommendations to Trump for improvements.

In its draft report, forwarded to Trump without objection, recommendations include establishing a common criteria to evaluate needs in advance rather than to assess damages after the storm, he said.

Grants for construction on things like homes and levees, designed to lessen the extent of damage, take about 27 months of application and review before local governments can receive federal funding, said Robert Fenton Jr., a former regional FEMA administrator.

That usually is after rebuilding from a disaster is well underway.

“Our recommendation here in the council is to really turn this program over to the state and let the state manage this program by providing the resources and an architecture that will ensure that priorities are naturally aligned and that some of the complexities of the environmental review and some of the other reviews are done locally,” Fenton said.

For individual assistance, the council recommends consolidating the various programs into a less complex, direct payment package that would include more focus on emergency housing.

Another of the recommendations forwarded to Trump is to transfer much of the National Flood Insurance Program from federal oversight to private insurers, which would lower taxpayer costs and give state regulators more power. Nearly a half-million Louisiana property owners have federal flood insurance policies — many require it to get a home mortgage.

“We would recommend launching a takeout program where we transfer those federal policies to the private sector,” Fenton said. “We need to incentivize states and communities to adopt better land use policies, where they build and how they build can’t be in risk areas.”

Five percent of the insured properties account for almost 40% of the program’s payouts. Flood insurance is more than $20 billion in debt and could collapse with a single significant event, Fenton said.

Panelists doubled down on Risk Rating 2.0, which raised flood insurance premiums for many in Louisiana. The process better aligns policy pricing with the property’s risk for flooding.

Fenton said perhaps some accommodation could be added to buy out frequently flooded properties.

“We sought the input from everyone. It wasn’t based on red states, blue states,” said Mark Cooper, former chief of staff for Gov. John Bel Edwards and a member of the task force. The panel held 16 “listening sessions” nationwide.

“We felt like it was very important to hear from everyone, which is what we did, whether it be emergency managers, governors, citizens, private sector nonprofit, faith-based organizations,” Cooper said.

Trump appointed the committee after criticizing FEMA’s reaction to Hurricane Helene in 2024, which caused billions of dollars in damage from coastal Florida to mountain communities in North Carolina and southwest Virginia that rarely see tropical storms. Trump suggested that the best fix might be to close the agency altogether.

The U.S. House has legislation that revamps the agency. That bill is waiting for the White House’s input, which is waiting for the panel’s draft report.

© 2026 The Advocate, Baton Rouge, La.. Visit www.theadvocate.com. Distributed by Tribune Content Agency, LLC.

Older

NC House lawmakers push for better breast cancer detection

Newer

Researchers at Golestan University of Medical Sciences Detail Findings in Managed Care (Shifts in Medicare Reimbursement for Common Lower Extremity Orthopaedic Trauma Procedures, 2006-2024): Managed Care

Advisor News

  • Help women break through their retirement roadblocks
  • Advisors await SEC decision on Vanguard fair fund distribution
  • What to do when adult children become the client
  • Judge rules insurers not liable for Newport Group’s AME Church pension lawsuit
  • Why vacation homes are becoming a major blind spot for advisors
More Advisor News

Annuity News

  • Best’s Market Segment Report: Global Life/Annuity Reinsurers Remained Poised for Steady Growth
  • When technology becomes easy to rent, what still separates life and annuity carriers?
  • Legacy Marketing Group® and Malibu Life USA Announce Distribution Partnership for New Fixed Indexed Annuity Platform
  • Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
  • Industry pushes back on linking ‘financial strength’ to annuity illustrations
More Annuity News

Health/Employee Benefits News

  • Hickman gets 27 months for leading benefits plot Northfield man gets 27 months for leading $50M health insurance scheme
  • Complaint Index Report Shows Assistance for Sumner County Residents
  • Obamacare premiums set to rise next year, filings show
  • ‘Downright unaffordable’: State employees in Montana to face higher healthcare costs
  • New Wolters Kluwer Health Prior Authorization and Claims Processing Optimization Tools Help Payers Meet Tighter Regulatory Timelines, Reduce High Appeal Overturn Rates
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Crum & Forster Insurance Group’s Members and Monitor Life Insurance Company of New York
  • AM Best Affirms Credit Ratings of Life Insurance Company Centras Life JSC
  • AM Best Withdraws Credit Ratings of New Providence Life Insurance Company
  • When technology becomes easy to rent, what still separates life and annuity carriers?
  • St. Paul & Minnesota Foundation invests $15M to help revive downtown St. Paul
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet