After the Hand-Off: How States Are Reinventing Disaster Response in 2025

Faced with a leaner federal backstop, states and localities are stepping up. From new funding models and response structures to stronger partnerships and local innovation, these initiatives represent a reimagining of emergency preparedness in a post-federal landscape.

6/4/20253 min read

Introduction: A New Disaster Landscape

In 2025, the United States is undergoing a profound transformation in how it manages disasters. A March 2025 executive order, Achieving Efficiency Through State and Local Preparedness, called on state and local governments to take greater responsibility for preparedness and planning—without additional federal funding. Simultaneously, FEMA proposed raising the thresholds for federal disaster declarations and reducing the federal cost-share for public assistance from 90% to 75%, limiting support to only the most catastrophic events.

According to the Urban Institute, these changes would have disqualified approximately 71% of federally supported disasters from 2008 to 2024, shifting an estimated $41 billion in costs to state and local governments.

Funding the Future: State-Led Fiscal Strategies

As FEMA tightens eligibility and reduces cost-sharing, states are creating financial mechanisms to manage growing response and recovery burdens:

Dedicated State Disaster Funds: Maryland’s State Disaster Recovery Fund was expanded in 2025 through SB 564/HB 865 to support counties when federal aid is unavailable.
Emergency Preparedness Accounts: Florida’s Emergency Preparedness and Response Fund now holds nearly $3 billion, with an additional $1 billion requested in 2025.
Creative Financing and Insurance Models: States are testing revolving loan funds, resilience bonds, and catastrophe insurance. In 2025, California began developing a public catastrophe model to reduce dependence on the National Flood Insurance Program.
Safeguarding Tomorrow Revolving Loan Fund: FEMA's Safeguarding Tomorrow Revolving Loan Fund helps states and territories provide hazard mitigation loans to local governments.

Resilience at the Roots: Local Preparedness Innovations

With a diminished federal presence, states are investing in building local capacity:

State-Controlled Emergency Forces: Florida reactivated its State Guard, funding it with $36 million to support disaster response.
Community-Based CERT Programs: New Castle County, Delaware relaunched its CERT program in 2025 with an updated curriculum and stronger state coordination.
Early Warning and Detection Systems: California’s MyShake earthquake alert app exceeded 4 million downloads. Other states are using AI and drones for wildfire detection.
Strategic Stockpiling: A 2024 report by Healthcare Ready found that while few states maintain robust medical stockpiles, some are building reserves to reduce reliance on federal resources.
Technology in Response: The New South Wales government in Australia is piloting drones, amphibious vehicles, and robotics to improve emergency response time and access during wildfires and floods—technologies U.S. states are beginning to explore.

Public Health Without a Net: State Responses to Grant Terminations

In early 2025, HHS rescinded over $11 billion in public health funding. States responded swiftly:

Legal Action: Twenty-three states filed suit against the federal government, citing risks to outbreak response capacity.
Michigan: The state awarded a $500,000 matching grant to Munson Healthcare in Traverse City to aid in recruiting healthcare professionals for difficult-to-fill roles. This funding, part of the Employer-Assisted Housing Fund backed by $10 million in state resources, supports employers contributing to affordable housing solutions. Munson plans to launch a housing stipend program for new employees who commit to at least two years of service, potentially attracting 40–60 new staff members. Source
Washington: Valley Medical Center announced the closure of five clinics and two inpatient units as part of state-level budget cuts and the loss of federal Medicaid reimbursement.

Stronger Together: Building Coordination Without Federal Command

As federal coordination retreats, states are strengthening intergovernmental and cross-sector efforts:

State-Local Integration: North Carolina launched a statewide effort to integrate local emergency plans with regional hazard mitigation strategies. This model is recognized by NEMA and ASPR for scalable coordination.
Interstate Mutual Aid: Through the Emergency Management Assistance Compact (EMAC), states preposition resources and share personnel during emergencies.
NGO and Corporate Partnerships: Local governments are formalizing MOUs with nonprofits and businesses to manage roles once led by FEMA.
Unified Advocacy: NEMA and IAEM are supporting state strategies and advocating for cohesive disaster policy.
ESF#8 Integration and Data Sharing: The Health Response Alliance (HRA) is piloting a multi-state data-sharing platform for NGOs, clinics, and agencies. HRA also provides stakeholder mapping to align health assets and needs across regions.

Redefining Readiness

The shift to state-led preparedness is real, rapid, and risky. While innovation abounds, smaller jurisdictions are feeling the strain.

This is more than a budget issue- it marks a fundamental shift in disaster governance. Upcoming hurricane seasons, wildfires, and outbreaks will test whether decentralized systems can protect communities as effectively as federally coordinated ones once did.

Still, states are rising to the challenge. With strategic investments, strong partnerships, and smarter data sharing, local leadership is redefining resilience- proving that preparedness doesn’t always have to start in Washington.