FEMA Disaster Fund on Brink of Depletion Amid Congressional Standoff

By Charlie McCarthy | Friday, February 27, 2026, 2:45 p.m. EST

The Federal Emergency Management Agency’s primary disaster account is reportedly running low on funds amid a partial government shutdown.

Two senior Trump administration officials told reporters that FEMA’s Disaster Relief Fund could be depleted within weeks if Congress fails to act to fund the Department of Homeland Security. The administration is expected to draw down the fund to just under $5 billion after sending another round of payments to disaster-stricken areas this week.

“One is close to the red zone … it’s getting very close,” one official told reporters, cautioning that a single large-scale disaster could drain the account entirely.

A yearlong DHS funding bill passed by House Republicans includes more than $26 billion for the Disaster Relief Fund. However, Senate Democrats have refused to move forward without imposing restrictions on the Trump administration’s immigration enforcement policies—a standoff that has lasted nearly two weeks.

Politico reported that FEMA distributed over $5 billion this week alone, reducing available funds from $9.6 billion just days ago. A FEMA spokesperson accused Democrats of “playing political games” with disaster aid and warned of “dire consequences” as the fund is “being rapidly depleted.”

The White House has pressed Senate Democrats to reach a deal, arguing that holding up DHS funding jeopardizes border enforcement, hurricane recovery, winter storm response, and emergency preparedness nationwide. The Washington Post reported that hundreds of FEMA employees have been grounded during the shutdown and are unable to travel to disaster zones or return home without special approval.

Ongoing recovery efforts in Alaska, Tennessee, Indiana, and other states have reportedly slowed due to travel restrictions and bureaucratic hurdles. FEMA’s Disaster Relief Fund is designed to operate during government shutdowns but still relies on congressional appropriations to remain solvent over time.

Administration officials told reporters they cannot temporarily transfer money from other accounts, such as the Building Resilient Infrastructure and Communities fund, because those funds are tied up in court. With much of the East Coast recently battered by a severe winter storm and relief payments from prior hurricanes still being processed, officials warn that the nation could face serious consequences if a major disaster strikes before DHS funding is restored.

Republicans argue the solution is straightforward: Pass the DHS funding bill and fully replenish FEMA’s disaster account. Until then, the administration states Americans in vulnerable communities are left waiting and hoping the next storm does not arrive before Congress acts.

Charlie McCarthy is a writer/editor at Newsmax with nearly 40 years of experience covering news, sports, and politics.