The Fight Over Ice Could Affect Fema, Flood Insurance. See What It Might Mean For Louisiana.

WASHINGTON – Federal disaster relief, on which hurricane and flood-prone Louisiana relies, is caught in the congressional fight to put guard rails on increasingly controversial immigration enforcement efforts.

Though the Federal Emergency Management Agency is in the midst of much turmoil itself, partisans on both sides see the disaster relief agency as an unintended victim of the bigger political debate.

While waiting for its $32 billion in funding, Federal Emergency Management Agency is still operating. Flood insurance will continue to be sold and claims processed – at least until September 30, according to a bill President Donald Trump signed Tuesday. Some non-recovery projects, such as remapping flood plains, are paused.

DHS Appropriations Act 2026

The Disaster Relief Fund, the source of federal money distributed to state and local governments, still has a balance of about $7 billion. But the $26.4 billion to replenish the account will have to wait, according to an agency memo and guidance from congressional appropriators.

"There are dollars in FEMA's account that they can respond immediately without awaiting a further appropriation," said U.S. Sen. Bill Cassidy, R-Baton Rouge. "If Democrats don't agree to an extended funding bill, it may be that the salaries of those who work for FEMA would not be paid because that department would be shut down."

If Democrats and Republicans are unable to reach an agreement by February 13 on immigration enforcement, the Department of Homeland Security — which includes FEMA, along with the Coast Guard, Transportation Security Administration, Secret Service, and a couple of other agencies — will not receive funding. That means about 20,000 FEMA employees and contractors dispatched when disaster strikes will have to work without pay and the Disaster Relief Fund will soon run out of money.

A battle over ICE

The $64.4 billion Department of Homeland Security budget is in limbo because of a debate over aggressive tactics by Immigration & Customs Enforcement and Customs & Border Protection and whether agents should continue to wear masks and follow other standards.

Democrats demand changes after federal agents, who don't operate under the same guidelines as local law enforcement, shot and killed Alex Pretti and Renée Good in Minneapolis, where President Donald Trump's administration launched a massive crackdown. They have the support of some congressional Republicans, but others have voiced problems with some of the 10 points on which Democratic members want concessions, including the use of warrants reviewed by judges rather than the administrative orders on which federal agents can rely when enforcing immigration laws.

Republican leaders argue the minority party is holding important other government functions hostage.

"By opposing DHS funding, Washington Democrats are risking the critical operations of FEMA, TSA, and our Coast Guard," said House Majority Leader Steve Scalise, R-Jefferson. "Republicans continue to show that we are the responsible party that will do our jobs and keep the critical functions of government funded, while Democrats continue to use government funding and the American people as political pawns for their extreme agenda of defunding law enforcement."

Rep. Julia Letlow, R-Start, wrote on X: "Even as Northeast Louisiana battles unspeakable damage from Winter Storm Fern, Washington Democrats are blocking funding for the Department of Homeland Security — which funds disaster relief through FEMA — because they don't want President Trump to enforce our immigration laws."

Democrats see it differently.

"I've been clear: debates over ICE and CBP guardrails should never interfere with disaster response," said Rep. Cleo Fields, D-Baton Rouge. "If every agency remains focused on doing their job, FEMA can and must remain fully dedicated to protecting and rebuilding our communities when they need it most."

The White House has gotten involved. About 700 agents were moved out of Minneapolis, and Homeland Security Kristi Noem announced that ICE and CPB agents would start wearing body cameras to record confrontations.

Still, GOP leaders are against many of the points Democrats want addressed. House Speaker Mike Johnson, R-Benton, for instance, is against requiring agents to remove their masks. Senate Majority Leader John Thune, R-South Dakota, has talked about requiring local law enforcement to help with immigration enforcement in the so-called "sanctuary cities."

GOP leadership is considering a resolution to continue operations for a short time under last fiscal year's appropriations past the February 13 deadline. But Republicans will need the help of Senate Democrats to approve the measure that would allow more time for negotiations. And they will need near-unanimous GOP support in the House, where Johnson can only afford to lose only one Republican vote.

Other turmoil at FEMA

Meanwhile, the future of FEMA is in disarray after Trump last year suggested reshaping the agency — if not eliminating it entirely.

FEMA is on its third director in a year. Nearly 10% of FEMA's staff, about 2,500, left in the first six months of 2025. Talk in December of additional layoffs this year attracted a Jan. 27 lawsuit filed by labor unions, individual cities and trade associations alleging FEMA would be unable to carry out its statutory mission.

Noem has been criticized for a new procedure requiring her personal approval of any projects costing more than $100,000. The New York Times reported a $17 billion backlog.

The Associated Press found that, in the 1990s and 2000s, approval of major disaster declarations took an average of two weeks, which became three weeks during the last decade and now are taking more than a month.

Trump appointed the FEMA Review Council to recommend improvements to the agency's operating structure and possibly shift federal payouts to block grants that local governments can use as they see fit, rather than the paying for services already rendered.

As the report was in a final draft, Noem postponed its release and reportedly wrote up an alternative, which also has not been released.

On January 23, Trump issued a new order giving a March 25 deadline for the recommendations.

While congressional leaders are waiting for the task force's report, some House members are getting antsy. They sent a letter Feb. 2 to Johnson and Scalise, as well as Democratic leadership, asking for a vote on the "Fixing Emergency Management for Americans," or the FEMA Act. Thirty-five Republicans and 21 Democrats have co-sponsored the legislation.

The FEMA Act would move the agency out of Homeland Security and make it answerable directly to the president. Additionally, the bill would streamline processes and change how the agency manages disaster assistance projects.

In the Senate, nine Republicans, including Cassidy and Sen. John Kennedy, R-Madisonville, asked FEMA to suspend the use of Risk Rating 2.0 in determining individual premiums for flood insurance policies. That new methodology was created to link the costs closer to a property's likelihood of flooding, after decades of paying out far more in claims than was paid in premiums. The change caused flood insurance premiums in much of Louisiana to soar.

Peter Waggonner, senior policy advisor for Greater New Orleans and co-leader of the Coalition for Sustainable Flood Insurance is pushing for a congressional commission to oversee the pricing process.

"The first step in reforming this broken program is to release the formula behind the rising premiums under Risk Rating 2.0, which would give us a better understanding of whether the billions Louisiana has invested in flood protection and mitigation are accurately reflected in our rates," said Rep. Troy Carter Sr., D-New Orleans. "We can't allow the dysfunction of government to punish everyday Americans, leaving families and businesses without the critical protection they need."

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