How to cut federal spending – and by how much – consumes Congressional Republicans right now.
Firestorms are scorching Southern California. But a political firestorm is about to singe Capitol Hill.
The natural disaster dynamic has morphed into a regular fiscal nightmare in Congress. And frankly, the way lawmakers address natural disasters creates a hyper obstacle to making a serious dent in the deficit and national debt.
Expect staggering costs.
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Destroyed cars remain in a river after the flooding caused by Hurricane Helene about a month ago in Asheville, North Carolina, on October 30, 2024. (Photo by YASUYOSHI CHIBA/AFP via Getty Images)
“This is going to be a very expensive event,” forecast Rep. George Whitesides, D-Calif.
FEMA is bracing for the price tag.
“We know this is going to be billions,” said FEMA Administrator Deanne Criswell.
President Biden is vowing help.
“We’re going to pay for it. And we’ve got to be prepared to pay for it,” said the president. “We’re going to need the United States Congress to follow up with appropriations to help provide significant help for our fellow Americans who need this help.”
Catastrophic natural disasters now pummel different quarters of the U.S. at an alarming rate. Devastating wildfires swept across Maui in 2023. Tornado outbreaks are the norm. Blackouts from the heat – or blizzards coupled with bone-chilling cold – dim the power grid. The dual hurricanes of Milton and Helene spun through the south last year, chewing through property just days apart in the fall. Water spilled out of rivers, creeks, steams, brooks and culverts, submerging entire communities.
Congress coughed up $100 billion just before Christmas to help victims recover from the hurricanes. Some of that money went to help people restart their businesses or cover costs to rebuild. $27 billion of it went to reload FEMA’s Disaster Relief Fund (DRF) to prepare for future emergencies – like the one now incinerating the Golden State. Milton and Helene drained the DRF.
The aftermath of the Los Angeles wildfires may become a fiscal nightmare for lawmakers as the new Congress attempts to address American’s growing national debt.
But Republicans now run Congress. President-elect Trump soon occupies the Oval Office. And when it comes to California – and what may have sparked the fires, Republicans could be reluctant to assist. That’s especially true as the mantra from Republicans is to slash $2 trillion in spending. In fact, there’s a fear among some Democrats that Congressional Republicans and President-elect Trump may try to penalize California – because it leans to the left.
Republicans now run the House and Senate. Mr. Trump takes office next week.
“When it comes to Congressional funding, the idea that we’re going to have an open checkbook, no matter how bad your policies are, is crazy,” said Rep. Warren Davidson, R-Ohio, on FOX Business.
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Democrats warned against partisan and region discord when natural disasters strike.
“California has voted to support supplemental packages for hurricanes in the American South. And now this is our time of need,” said Whitesides.
Several Northern California Republicans told Fox that Democrats from Southern California were exceptionally helpful muscling through aid for their part of the state after wildfires.
So what happens when the bill comes due for the Los Angeles wildfires?
“We help all Americans,” said Rep. Bennie Thompson, D-Miss., the top Democrat on the House Homeland Security Committee which oversees FEMA.
Congress members tour the wildfire disaster zone in Altadena on January 11, 2025. (Derek Shook for Fox News Digital)
Thompson was confident Congress would meet the needs of California.
“If we need to do more, we will,” said Thompson.
Some Republicans blamed the wildfires – and the response – on liberal Democrats who run much of California.
“It is an epic disaster of mismanagement,” said Rep. Byron Donalds, R-Fla., on FOX Business.
“What’s happened in California is the fault of (California Gov.) Gavin Newsom (D) and the legislature there.”
“What we can see is the failure of policy there and the failure of leadership in California,” piled on Sen. Bill Hagerty, R-Tenn., on Fox. “We’re going to have to have real accountability. We need to have hearings to understand… to get to the bottom of what’s taking place. What the failures have been.”
California insurers nixed hundreds of thousands of policies for homeowners in areas prone to wildfires after state regulators banned higher premiums – despite the hazards. Some Republicans seized on this issue.
“California made some really bad policy decisions that caused those insurance companies to flee,” said House Majority Leader Steve Scalise, R-La. “The people that made those policy decisions have to be held accountable, too.”
Even some Democrats questioned the local response.
Rep. Jimmy Gomez, D-Calif., worked on a bill to help guarantee water for all Californians when they turn on the spigot when he served in the state legislature.
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“Why didn’t they have water? Is it negligence or is it just the fact that so many fires were breaking out all over the city in so many different areas that the system was being pushed to capacity and got overwhelmed?” asked Gomez.
Other Democrats rebuked GOP criticism of California’s leaders.
“I think that’s all just ridiculous,” said Rep. Robert Garcia, D-Calif. “I think the governor is on the ground doing a great job managing the response. I don’t think that we should be putting blame on anyone.”
The cost of the fires likely means demands for another infusion of cash from Congress for FEMA – just as Republicans are starting to look to cut billions if not more than a trillion dollars. How can lawmakers pay for natural disasters – and yet slash all of this money?
“It’s always going to be hard. I think we just got to prioritize. And, I think we need to couple any major spending with cuts on the other side,” said Rep. Tim Burchett, R-Tenn.
“So to be clear, when that bill comes due for California, some conservatives want to see some offsets?” asked yours truly of Burchett.
The Federal Emergency Management Agency Headquarters, in Washington is photographed on October 8, 2024 in Washington, DC. (Kent Nishimura/Getty Images)
“Absolutely,” replied Burchett.
The wildfires would have been a major issue had Congress not forked over more than $100 billion just to FEMA and various disasters in the bill before Christmas. Yet some Republicans are skeptical of the competence of FEMA to do the job.
“I doubt the people of California will get their $700 that will be promised to them. Because as it happened in North Carolina, in Tennessee, a lot of people were turned down because all their identification was burnt up or was washed away. And there it’ll be all burnt up. It’ll just be a cluster,” predicted Burchett.
Florida’s former statewide emergency management director posed an ominous warning.
“I’ve got bad news for everybody. Disasters are coming everywhere,” observed Rep. Jared Moskowitz, D-Fla., on MSNBC.
More disasters means additional demand for relief. That’s the challenge as Republicans try to cut spending.
A few wise souls on Capitol Hill have tinkered with developing a new model to address natural disasters. The current budget model is fund appropriations under the premise that NOTHING will happen. Then it’s sometimes a challenge for lawmakers to pass a bill providing additional aid.
So there were two monster hurricanes in the fall. Wildfires now. What’s next? An earthquake? Blizzards? Ice storms? Tornadoes? Drought? Floods?
There has been debate about creating a “rainy day fund” – perhaps a “monsoon day fund” – that Congress can tap to dispatch major chunks of money without hassle when natural disasters hit.
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Other natural disasters are inevitable.
But Congressional funding to cover the cost is far from it.