US judge rules Trump admin cannot reallocate disaster relief funds

Business Standard

06-08-2025

Noting money for the programme was allocated by Congress, the states' lawsuit says any attempt to redirect it would run afoul of the Constitution
AP Boston
A federal judge on Tuesday blocked the Trump administration from reallocating $4 billion meant to help communities protect against natural disasters.
US District Judge Richard G Stearns in Boston granted a preliminary injunction sought by 20 Democrat-led states while their lawsuit over the funding moves ahead.
The states argue the Federal Emergency Management Agency lacks the authority to end the Building Resilient Infrastructure and Communities programme and redirect more than $4 billion of its funding. The programme aims to harden infrastructure around the country against potential storm damage.
FEMA initially announced it was ending the programme, but later said in a court filing that it was evaluating it.
"Although the Government equivocates about whether it has, in fact, ended the BRIC programme, the States' evidence of steps taken by FEMA to implement the announced termination portend the conclusion that a determination has in fact been made and that FEMA is inching towards a fait accompli," Stearns wrote in his ruling. "The agency has cancelled new funding opportunities and informed stakeholders that they should no longer expect to obtain any unobligated funds."
Noting money for the programme was allocated by Congress, the states' lawsuit says any attempt to redirect it would run afoul of the Constitution.
A lawyer for the government, Nicole O'Connor, argued at a hearing in July that the funds can be used both for disaster recovery and disaster prevention and that FEMA should have discretion to use the money how it sees fit.
The program has provided grants for a range of disaster management projects, including strengthening electrical grids, constructing levees for flood protection and relocating vulnerable water treatment facilities. Many of the projects are in rural communities.
FEMA said in a news release in April that it was "ending" the programme, but the agency's acting chief, David Richardson, later said in a court filing that FEMA was merely evaluating whether to end or revise it.
The states, including California, New York and Washington, argue that the threat of losing the funding alone has put numerous projects at risk of being cancelled, delayed or downsized. And they warn ending the programme would be highly imprudent.
"By proactively fortifying our communities against disasters before they strike, rather than just responding afterward, we will reduce injuries, save lives, protect property, and, ultimately, save money that would otherwise be spent on post-disaster costs," they wrote in the suit filed in July.
FEMA said in a court filing an injunction on its use of the funds could hamper its ability to respond to major disasters.
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