• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Politicsdisaster

‘Grant purgatory’ is a growing risk to crisis response, and the government shutdown isn’t helping, state emergency officials say

By
Gabriela Aoun Angueira
Gabriela Aoun Angueira
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Gabriela Aoun Angueira
Gabriela Aoun Angueira
and
The Associated Press
The Associated Press
Down Arrow Button Icon
October 19, 2025, 6:06 PM ET
Homes damaged from flash floods along the Guadalupe River in Kerrville, Texas.
Homes damaged from flash floods along the Guadalupe River in Kerrville, Texas.Gerald Herbert—AP Photo
Add Fortune on Google for similar content.

State officials on the front lines of preparing for natural disasters and responding to emergencies say severe cuts to federal security grants, restrictions on money intended for readiness and funding delays tied to litigation are posing a growing risk to their ability to respond to crises.

Recommended Video

It’s all causing confusion, frustration and concern. The federal government shutdown isn’t helping.

“Every day we remain in this grant purgatory reduces the time available to responsibly and effectively spend these critical funds,” said Kiele Amundson, communications director at the Hawaii Emergency Management Agency.

The uncertainty has led some emergency management agencies to hold off on filling vacant positions and make rushed decisions on important training and purchases.

Experts say the developments complicate state-led emergency efforts, undermining the Republican administration’s stated goals of shifting more responsibility to states and local governments for disaster response.

In an emailed statement, the Department of Homeland Security said the new requirements were necessary because of “recent population shifts” and that changes to security grants were made “to be responsive to new and urgent threats facing our nation.”

A new wrinkle tied to immigration raids

Several DHS and FEMA grants help states, tribes and territories prepare for climate disasters and deter a variety of threats. The money pays for salaries and training, and such things as vehicles, communications equipment and software.

State emergency managers say that money has become increasingly important because the range of threats they must prepare for is expanding, including pandemics and cyberattacks.

FEMA, a part of DHS, divided a $320 million Emergency Management Performance Grant among states on Sept. 29. But the next day, it told states the money was on hold until they submitted new population counts. The directive demanded that they omit people “removed from the State pursuant to the immigration laws of the United States” and to explain their methodology.

The amount of money distributed to the states is based on U.S. census population data. The new requirement forcing states to submit revised counts “is something we have never seen before,” said Trina Sheets, executive director of the National Emergency Management Association, a group representing emergency managers. “It’s certainly not the responsibility of emergency management to certify population.”

With no guidance on how to calculate the numbers, Hawaii’s Amundson said staff scrambled to gather data from the 2020 census and other sources, then subtracted he number of “noncitizens” based on estimates from an advocacy group.

They are not sure the methodology will be accepted. But with their FEMA contacts furloughed and the grant portal down during the federal shutdown, they cannot find out. Other states said they were assessing the request or awaiting further guidance.

In its statement, DHS said FEMA needs to be certain of its funding levels before awarding grant money, and that includes updates to a state’s population due to deportations.

Experts said delays caused by the request could most affect local governments and agencies that receive grant money passed down by states because their budgets and staffs are smaller. At the same time, FEMA also reduced the time frame that recipients have to spend the money, from three years to one. That could prevent agencies from taking on longer-term projects.

Bryan Koon, president and CEO of the consulting firm IEM and a former Florida emergency management chief, said state governments and local agencies need time to adjust their budgets to any kind of changes.

“An interruption in those services could place American lives in jeopardy,” he said.

Grant programs tied up by litigation

In another move that has caused uncertainty, FEMA in September drastically cut some states’ allocations from another source of funding. The $1 billion Homeland Security Grant Program is supposed to be based on assessed risks, and states pass most of the money to police and fire departments.

New York received $100 million less than it expected, a 79% reduction, while Illinois saw a 69% reduction. Both states are politically controlled by Democrats. Meanwhile, some territories received unexpected windfalls, including the U.S. Virgin Islands, which got more than twice its expected allocation.

The National Emergency Management Association said the grants are meant to be distributed based on risk and that it “remains unclear what risk methodology was used” to determine the new funding allocation.

After a group of Democratic states challenged the cuts in court, a federal judge in Rhode Island issued a temporary restraining order on Sept. 30. That forced FEMA to rescind award notifications and refrain from making payments until a further court order.

The freeze “underscores the uncertainty and political volatility surrounding these awards,” said Frank Pace, administrator of the Hawaii Office of Homeland Security. The Democratic-controlled state received more money than expected, but anticipates the bonus being taken away with the lawsuit.

In Hawaii, where a 2023 wildfire devastated the Maui town of Lahaina and killed more than 100 people, the state, counties and nonprofits “face the real possibility” of delays in paying contractors, completing projects and “even staff furloughs or layoffs” if the grant freeze and government shutdown continue, he said.

The myriad setbacks prompted Washington state’s Emergency Management Division to pause filling some positions “out of an abundance of caution,” communications director Karina Shagren said.

A series of delays and cuts disrupts state-federal partnership

Emergency management experts said the moves have created uncertainty for those in charge of preparedness.

The Trump administration has suspended a $3.6 billion FEMA disaster resilience program, cut the FEMA workforce and disrupted routine training.

Other lawsuits also are complicating decision-making. A Manhattan federal judge last week ordered DHS and FEMA to restore $34 million in transit security grants it had withheld from New York City because of its immigration policies.

Another judge in Rhode Island ordered DHS to permanently stop imposing grant conditions tied to immigration enforcement, after ruling in September that the conditions were unlawful — only to have DHS again try to impose them.

Taken together, the turbulence surrounding what was once a reliable partner is prompting some states to prepare for a different relationship with FEMA.

“Given all of the uncertainties,” said Sheets, of the National Emergency Management Association, states are trying to find ways to be “less reliant on federal funding.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Gabriela Aoun Angueira
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
1 hour ago
Henry Ford, Steve Jobs, William Boeing: These Fortune 500 founders are the American-born children of immigrants
PoliticsImmigration
Henry Ford, Steve Jobs, William Boeing: These Fortune 500 founders are the American-born children of immigrants
By Catherina GioinoJuly 1, 2026
5 hours ago
Russian President Vladimir Putin
EconomyRussia
It started with one viral influencer complaining about Russia’s economy. Now a record 60% of Russians are pessimistic about their country’s outlook
By Tristan BoveJune 30, 2026
19 hours ago
Image of colored bar charts with one being pushed up.
NewslettersEye on AI
AI is minting billion-dollar companies faster than before
By Beatrice NolanJune 30, 2026
19 hours ago
kean
PoliticsCongress
Tom Kean discloses depression diagnosis behind 4-month absence from Congress: ‘until you experience it yourself, it is difficult to fully understand’
By Mike Catalini, Joey Cappelletti and The Associated PressJune 30, 2026
19 hours ago
Anthropic CEO Dario Amodei pointing to his head.
AIAnthropic
At the heart of Anthropic’s clashes with the U.S. government, a decision not to play by the new rules of Trump’s Washington
By Jeremy KahnJune 30, 2026
22 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
2 days ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.