Exclusive: Trump’s FEMA council to recommend dramatic downsizing and overhaul – but not elimination – of the agency

By Gabe Cohen, CNN

(CNN) — A task force created by President Donald Trump plans to recommend the most sweeping overhaul of FEMA in decades, dramatically reducing the federal agency’s role in disaster response by cutting its workforce in half and rolling out a new block grant system designed to get aid to communities faster and with less bureaucratic hassle.

The recommendations from the FEMA Review Council, a copy of which was obtained by CNN, do not propose eliminating the Federal Emergency Management Agency, as Trump and Homeland Security Secretary Kristi Noem once vowed.

The draft report does recommend changing the agency’s name as part of a rebranding effort, referring to it temporarily as “FEMA 2.0.”

“It is time to close the chapter on FEMA,” the report states. “A new agency should be established that retains the core missions of FEMA, while highlighting the renewed emphasis on locally executed, state or tribally managed, and federally supported emergency management.”

The council is expected to vote on the recommendations Thursday, after which the report will land on President Trump’s desk for review. Trump has been openly critical of the agency and at one point suggested he would phase it out after hurricane season, which ended this month.

The recommended changes, the council argues, are aimed at streamlining operations, cutting red tape and fulfilling Trump’s desire to shift more responsibility for disaster response and recovery onto the states.

The council also suggests raising the bar for states to qualify for federal assistance, a move that could leave states footing a much larger share of the bill for major disasters and handling smaller storms entirely on their own.

The long-awaited report is the product of months of closed-door debate and political wrangling. Perhaps the most contentious recommendation is to keep FEMA under the umbrella of the Department of Homeland Security.

Several agency veterans, state officials, and even some council members argued that FEMA should have greater independence. Public comments also overwhelmingly favored an independent FEMA, according to three sources familiar with the discussions.

But Noem, who co-chairs the council and opposed moving FEMA, prevailed. The final report recommends leaving FEMA under DHS, preserving Noem’s influence over its $25 billion budget.

Rebranding and disaster aid

As part of the overhaul expected in the months ahead, the council not only recommends cutting FEMA’s workforce by 50% but also moving many employees out of Washington, DC – “rebalancing” the agency’s headquarters and field staff to reduce what it calls “bureaucratic bloat.” The report says the workforce reduction could be carried out over two to three years with any cost savings delivered back to states.

It’s unclear when the rebranding would happen. Trump officials have been pushing for a name change for months.

In a March memo titled “Abolishing FEMA,” then-acting Administrator Cameron Hamilton floated options like the “National Office of Emergency Management” – which would be known by familiar acronym – NOEM.

Notably, some of the more radical ideas floated during the council’s deliberations — such as moving the agency’s headquarters out of Washington, DC (another DHS idea) — were ultimately left on the cutting room floor.

Many of the disaster aid changes are likely to garner some support from FEMA insiders who believe that too many programs and responsibilities have been dropped onto the federal agency over the years, distracting from its primary responsibility of assisting states when they are overwhelmed by hurricanes, wildfires, floods and other catastrophes.

But the idea of shifting more responsibility to states while slashing FEMA’s workforce has sparked concern among veteran FEMA officials, who worry it could leave the nation less prepared for major emergencies.

Some of the proposals will likely require action from Congress and changes to federal regulations.

The proposed block grant system would deliver disaster aid to hard-hit states within 30 days of a major federal disaster declaration to provide a quick “financial backstop and cashflow for the rapid response and recovery,” though states will likely face a higher cost share than the current rules require.

The plan would also consolidate individual aid into a single direct payment to survivors to accelerate disaster recovery. For homeowners, this assistance would be capped based on property value and level of need, providing a simpler way to cover crucial expenses like repairs and temporary housing.

The council is pushing states to bolster their capabilities while raising the threshold to qualify for disaster aid. The president has the final say on disaster declarations, but these thresholds have traditionally guided if – and when – federal help is delivered.

“Federal assistance should only be reserved for truly catastrophic events that exceed [State, Local, Tribal and Territorial] capacity and capability,” the report states.

Trump administration officials have been discussing this idea since the spring, when they proposed quadrupling the threshold, but never issued specific updated guidance.

While the administration expects states to shoulder more responsibility, FEMA would likely maintain certain critical disaster resources like its Urban Search and Rescue Network.

“Although state and local authorities have the primary responsibility for responding to a wide range of hazards and protecting their citizens, the federal government should retain the responsibility to support these efforts when required,” the report states.

The report proposes replacing FEMA’s current Hazard Mitigation Grant Program – designed to help communities build back safer after a disaster – with a two-part funding structure designed to more quickly provide money for immediate repairs and then long-term risk reduction.

In a bid to make the National Flood Insurance Program more financially stable, the proposal would encourage private insurance companies to take over policies and seek to ensure homeowners pay prices based on their actual flood risk.

Keeping FEMA under DHS

For months, the council’s members – mostly Republicans, with some seasoned emergency management officials – debated whether FEMA should remain under DHS, become an independent agency or be moved under the White House’s National Security Council. Proponents of such a move argued this would insulate the agency from political maneuvering.

But after intense pressure from Noem and DHS, the council is recommending that FEMA stay put. The report argues “the Department provides critical resources, budgeting support, and intelligence capabilities, which enables stronger disaster preparedness, faster response, and better recovery efforts for states and communities while maintaining government stability and continuity during crises.”

Meanwhile, Noem and DHS have been tightening their grip on FEMA, ousting some of the agency’s most experienced leaders and installing loyalists with little background in emergency management.

Noem and other DHS leaders also have slashed key grant programs, including the Building Resilient Infrastructure and Communities (BRIC) program, a move that’s now tied up in court battles.

State emergency management officials have been sounding the alarm for months, warning that critical FEMA funds aren’t reaching communities, leaving many to wonder what help will be available when the next disaster strikes.

This report lands as Congress is discussing charting its own course for FEMA’s future. The bipartisan FEMA Act, which has already attracted 40 co-sponsors, would make the agency independent and, like the council’s recommendations, create disaster response and recovery block grants for states.

Lawmakers say the goal is to give states more flexibility and improve the nation’s ability to respond to emergencies.

As the debate over FEMA’s future rages on, one thing is clear: The stakes for disaster preparedness and recovery in America have never been higher, as climate change fuels more intense storms, creating increasingly catastrophic conditions for communities nationwide.

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