FEMA Public Assistance: Powering Recovery for Rural America

When disaster strikes, electric cooperatives are regularly on the front lines working to restore power in some of the hardest hit areas. FEMA is a critical partner in these efforts. Reforming FEMA into a stronger, more responsive agency will help strengthen rural resilience, protect taxpayer dollars and ensure essential services are restored as quickly as possible after a disaster.

• Electric co-ops are not-for-profit, consumer-owned utilities.
• They serve 92% of persistent poverty counties in America.
• Without FEMA aid, co-ops must pass disaster recovery costs directly to consumer-members—often causing electric bills to rise.
• FEMA provides essential coordination, expertise and funding that ensures electric systems can be restored rapidly and efficiently.

FEMA is not a perfect system: Delays in funding approvals, complex documentation requirements and a lack of consistency across regions slow down recovery and strain local resources. But while states play a critical role in disaster response, they cannot replace FEMA’s essential function in delivering federal assistance.

Electric co-ops support common-sense FEMA reforms that will:

• Speed up reimbursements
• Cut through red tape
• Improve transparency and accountability

Co-ops believe in making FEMA work better. A smarter FEMA means stronger communities, lower costs and faster recovery.

NRECA supports the Fixing Emergency Management for Americans (FEMA) Act of 2025 (HR 4669), a bipartisan effort to reform and modernize FEMA. The legislation was passed by the House Transportation and Infrastructure Committee in September 2025.

Backed by sustained advocacy from electric cooperatives, the FEMA Act of 2025 would:

• Establish an expedited timeline for the reimbursement of emergency work.
• Streamline the process for approving and executing permanent repairs to critical infrastructure.
• Improve access to resiliency funding to help enhance reliability in preparation for future disasters.
• Allow for reimbursement of loan interest that is incurred during long FEMA processing timelines.

“The FEMA Act of 2025 is a vital step toward a smarter FEMA—one that protects taxpayer dollars and empowers local communities,” said NRECA CEO Jim Matheson.

Introduced by leaders in Congress, including Chairman Sam Graves, R-Mo., and Ranking Member Rick Larsen D-Wash., this bill helps ensure FEMA works for all Americans—especially the communities electric co-ops serve.

Congress is currently considering the FEMA Act of 2025, legislation to reform FEMA into a stronger, more responsive agency. Click here to learn how you can take action and urge your member of Congress to support this legislation.