FEMA Review Council Releases Report to Reform Agency

• By: Raaed Haddad
• May 13, 2026

On May 7, the FEMA Review Council submitted its final report to President Donald Trump. The 75-page report presents a comprehensive set of recommendations for overhauling the federal government’s approach to disaster preparedness, response and recovery.

The report argues that FEMA has become overly slow and bureaucratic and recommends shifting greater responsibility for disaster response and recovery to state and local governments, with the federal government serving in a more supportive role.

Key recommendations include streamlining disaster aid programs, reducing administrative red tape, modernizing and downsizing portions of FEMA, reforming the National Flood Insurance Program (NFIP), and increasing the threshold for triggering federal disaster assistance. The report also calls for simplifying environmental reviews and grant application processes to accelerate disaster recovery efforts.

In relation to the NFIP, the council recommends “a comprehensive reform plan centered on a strategic shift toward a primary role for the private market, to foster a more resilient and financially stable flood risk management system.”

The NFIP recommendations include empowering communities with stronger land-use policies; modernizing risk data with continued implementation of Risk Rating 2.0 and revising flood maps to inform the American people about their true risk; implementing risk-based pricing and actual costs; revising “Write Your Own” (WYO) compensation to reduce overall administrative costs; incentivizing the launch of a “take-out” program to transfer policies to the private market and focus hazard mitigation funds on repetitive loss properties; and engaging state insurance commissioners to facilitate this transfer, including exploring the establishment of a centralized flood insurance marketplace to serve as a clearinghouse for admitted insurers.

While some of the intentions are well-founded, others, such as the WYO compensation revisions, are very concerning. The WYO reimbursement rate has steadily declined over the years—and significantly the last two years—despite administrative costs steadily increasing. That disconnect has already put a real strain on the program, led to an exodus of WYO carriers, and negatively impacted agent compensation.

FEMA can revise the WYO compensation structure administratively without Congress passing new legislation, which is why the Big “I” has been in constant contact with lawmakers in Congress to exert their oversight authority.

If Congress and the Trump administration are truly interested in depopulating and modernizing the NFIP, passing legislation such as the “Continuous Coverage for Flood Insurance Act” (H.R. 6620) would be a very important step.

The bill clarifies that a private flood insurance policy can satisfy the mandatory purchase requirement for flood insurance and ensures state insurance regulators retain regulatory authority over private flood insurance. The bill also makes clear that consumers can obtain a private policy and then later obtain an NFIP policy without losing grandfathered rate status if the private market no longer meets their needs. This continuous coverage clarification is a vitally important feature for agents and the customers they serve.

It is important to note that the FEMA Review Council report is nonbinding. Implementing large-scale depopulation programs would require statutory changes, including amendments to the National Flood Insurance Act. The report expressly acknowledges that meaningful NFIP reform will require congressional action.

The Big “I” will continue to closely monitor developments, engage with lawmakers and update members through the News & Views e-newsletter.

Raaed Haddad is Big “I” director of federal government affairs.