Disaster aid ensnared in Trump’s spending mishegas

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Heavy rains from hurricane Helene caused record flooding and damage.

Heavy rains from Hurricane Helene caused record flooding and damage Sept. 28, 2024, in Asheville, North Carolina. | Melissa Sue Gerrits/AFP via Getty Images

President Donald Trump’s spending freeze flip-flop is wreaking havoc on the nation’s efforts to recover from major natural disasters, an already fraught and sluggish process.

The Trump administration today rescinded its Monday memo that had implemented a sweeping freeze on vast swaths of federal aid, after a federal judge put a temporary block on the action Tuesday.

But it’s not clear whether the revocation is actually an end to the freeze itself. White House press secretary Karoline Leavitt posted on X that the move “is NOT a rescission of the federal funding freeze. It is simply a rescission of the [Office of Management and Budget] memo.”

And — much like a traffic backup that endures even after the accident is cleared (if the accident has indeed cleared?) — many agencies are still dealing with operational disruptions. 

On Tuesday, states lost access to the Federal Emergency Management Agency’s online portal, which distributes roughly $30 billion a year for disaster cleanup and infrastructure repairs, write Thomas Frank, Anne C. Mulkern and Andres Picon. The lapse in access could delay recovery for every state hit by a major storm, wildfire or other disaster in the past decade or more, according to former FEMA Chief of Staff Michael Coen.

“It’s going to slow things down when there’s already frustration with how long it takes for communities to recover,” Coen said. “It’s just one more thing they now have to deal with.”

While FEMA’s aid distribution to states may be caught in Trump's crosshairs, payments to individual households affected by disasters are continuing for the time being. In the wake of Los Angeles’ devastating fires, FEMA has given nearly 24,000 households in Southern California an average of $2,150 in aid and has been approving thousands of applications every day since Trump took office, FEMA records show.

But the freeze about-face may only be the start of FEMA’s recovery disruptions. The White House has ordered a broader review of all federal grant programs to ensure they align with Trump’s new agenda, which seeks to dismantle the Biden administration’s emphasis on equity, environmental justice and climate change.

That could bring about a major shakeup at FEMA. Former President Joe Biden had revised FEMA’s individual assistance program to help minority households qualify. The agency expanded the list of documents that can be used to prove residency, largely to help Black people in the South who do not have deeds to inherited property because their ancestors were excluded from the legal system through slavery and Jim Crow policies, for example.

FEMA also takes a harder look at rebuilding projects that may harm low-income and marginalized populations, in compliance with a 1994 executive order from former President Bill Clinton. Trump revoked the Clinton order last week.

 

It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

 

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Donald Trump (left) and Karoline Leavitt (right)

Trump speaks to reporters aboard Air Force One on Monday. | Mark Schiefelbein/AP

Feds flabbergasted by Trump’s resignation scheme
Federal employees are reeling after a Trump administration mass email hit their inboxes Tuesday offering pay and benefits through Sept. 30 if they agree to resign, write Kevin Bogardus and Robin Bravender.

“It was the batshit craziest email I’ve ever read,” said an Environmental Protection Agency employee. Federal workers were instructed to reply to the email account “hr@opm.gov” with the word “Resign” if they wanted to accept the offer.

Lawmakers scramble to assess Trump’s funding freeze
A wave of confusion and outrage is sweeping through the Capitol, as lawmakers scrambled to make sense of the Trump administration’s freezing funding for thousands of federal programs (and its apparent reversal), writes Andres Picon.

“The blast radius of this terrible decision is virtually limitless, and its impact will be felt over and over again,” said Senate Minority Leader Chuck Schumer (D-N.Y.). “This is cruelty, this is lawlessness. This is a heist done on a national scale.”

Finland warns against Trump gas deal
Finland’s top energy official says buying more gas from the U.S. won't solve the EU's problems — and would instead create new ones, writes Victor Jack.

Trump is demanding that the EU buy more American liquefied natural gas if it wants to avoid tariffs. But Kai Mykkänen, Finland's outgoing energy and environment minister, says that would frustrate the continent's climate plans.

“I encourage all countries to get rid of significant amounts of fossil fuels altogether — and in that sense, [there are] hopefully not any significant deals to be done” with Washington, Mykkänen told POLITICO.

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Robert F. Kennedy Jr. is Trump's nominee for secretary of Health and Human Services. | Francis Chung/POLITICO

Robert F. Kennedy Jr. used his experience as an environmental attorney in an attempt to boost his credibility during a Senate hearing to confirm him as the nation’s top health official.

Chevron announced Tuesday it would help deliver a fleet of gas plants to power data centers, joining a trend of fossil fuel companies seeking a market in the country's artificial intelligence boom.

The Senate on Wednesday voted 56-42 to confirm Lee Zeldin to be administrator of the Environmental Protection Agency. Senators also voted 78-20 to close debate on Doug Burgum to lead the Interior Department, making confirmation of the former North Dakota governor likely.

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