Homeland Security Shutdown Leaves US Short on Disaster Money

March 3, 2026, 7:47 PM UTC

The stalemate over funding the Department of Homeland Security has left a pot of money for ongoing disaster response at risk of running dry, raising the stakes for talks to end the partial government shutdown.

The Federal Emergency Management Agency’s Disaster Relief Fund has dropped to $4 billion, according to lead Republicans on the Senate Appropriations Committee.

FEMA traditionally keeps that reserve at $3 billion to respond to future disasters, leaving just $1 billion available for any existing disaster response, according to Senate Appropriations Chair Susan Collins (R-Maine) and Homeland Security subcommittee chair Katie Britt (R-Ala.).

“Our ability to fund disaster response is virtually gone,” Homeland Security Secretary Kristi Noem told the Senate Judiciary Committee on Tuesday. “It needs to be refunded.”

Democrats accused Noem of rushing disaster aid out the door to manufacture a shortfall. They’ve also proposed funding FEMA and disaster aid separately while negotiations over immigration enforcement changes drag on.

The Disaster Relief Fund’s decline has been dramatic. Its balance stood at $9.6 billion about two weeks ago, according to Senate Appropriations Vice Chair Patty Murray‘s (D-Wash.) office.

“These resources should have gone out the door many months ago, but Secretary Noem has personally prevented disaster aid from reaching Americans trying to rebuild and recover,” Murray said in a statement last week. “What a transparent political ploy—are disaster relief funds only going to get out when DHS is shut down?”

Spokespeople for FEMA did not return requests for comment.

Senate Democrats have been blocking a House-passed funding bill for DHS in protest of immigration enforcement agents’ killing of two Americans in Minneapolis. They’re reviewing the latest offer from the White House.

Britt said conversations are also now happening between lawmakers after weeks of negotiations between senior Democrats and the White House.

“I’m encouraged that if there is a pathway forward, that will be part of creating it,” she told reporters Tuesday.

Republicans have ramped up pressure on Democrats since the US and Israel launched attacks on Tehran, fearing a shutdown could hamper security if Tehran’s terrorist proxies try to retaliate.

“It makes no sense and endangers our country for DHS to be closed,” Collins told reporters Tuesday.

Only about 800 of the Cybersecurity and Infrastructure Security Agency’s 2,000 employees are working, and its probes into critical infrastructure vulnerabilities are on hold, the GOP senators’ office said.

— With assistance from Lillianna Byington.

To contact the reporter on this story: Zach C. Cohen in Washington at zcohen@bloombergindustry.com

To contact the editor responsible for this story: Sarah Babbage at sbabbage@bgov.com

Learn more about Bloomberg Government or Log In to keep reading:

See Breaking News in Context

Providing news, analysis, data and opportunity insights.

Already a subscriber?

Log in to keep reading or access research tools and resources.