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American Focus > Blog > Environment > Recovery to Resilience: Making the Most of Long-Awaited Disaster Funds
Environment

Recovery to Resilience: Making the Most of Long-Awaited Disaster Funds

Last updated: February 2, 2025 1:46 am
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In the latter part of 2024, a bipartisan funding bill passed by Congress allocated $110 billion in disaster recovery funds across various federal agencies. The Department of Housing and Urban Development (HUD) announced the distribution of their $12 billion portion of disaster recovery funding, known as Community Development Block Grants for Disaster Recovery (CDBG-DR), to disaster-impacted communities at the city, county, and state levels. These funds are intended to be flexible, allowing recipients to tailor programs to address local post-disaster needs, typically falling into housing, infrastructure repair, or economic revitalization categories.

Disasters can exacerbate existing inequalities, as evidenced by a study showing that FEMA disaster aid on a county level widened the racial wealth gap. The delay in the flow of disaster funds can lead to financial and emotional strain on affected households.

With CDBG-DR funds now allocated across 23 states and one territory, there is a significant opportunity to not only rebuild but also create more equitable and resilient communities in the face of escalating risks.

### What Climate Leaders and Program Administrators Can Do

After persistent advocacy efforts, HUD recently revised its program requirements to enhance the equity of disaster recovery. As jurisdictions develop their action plans for submission to the federal government, they should consider the following recommendations in consultation with disaster survivors.

#### Stick to 70%

Federal regulations stipulate that 70% of CDBG-DR funds must benefit low-to-moderate income households. While recipients can request a lower threshold of 51%, it is crucial, especially amid increasing climate-related disasters impacting Americans financially, that the 70% requirement is upheld.

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#### Dovetail and Accommodate to Deepen Impact

Disasters do not occur in isolation, and those struggling to access recovery assistance often face multiple challenges. Investments should be made in accommodations to ensure equitable access to resources, such as transportation options for mobility-impaired residents and language-accessible program materials. Administrators should also work with local programs reaching vulnerable populations to ensure inclusivity and prevent disparities.

#### Remember Renters

The increasing trend of renting homes necessitates a focus on renters’ needs in disaster recovery programs. Designing programs to be more responsive to renters could involve deepening subsidies for affordable housing, providing resilience upgrades to existing affordable housing, or investing in legal services for renters.

### A Drop in the Resilience Bucket

While CDBG-DR funds will not meet all the resilience or housing needs of disaster-impacted communities, they represent a crucial investment. Other components of the $110 billion disaster spending package will address different aspects of recovery efforts, highlighting the need for proactive and equitable investment in the face of climate risks and the affordable housing crisis.

Ultimately, every drop in the resilience bucket counts, emphasizing the importance of investing funds in ways that have the most equitable impact until broader systemic changes are implemented.

TAGGED:DisasterfundslongawaitedMakingRecoveryResilience
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