Due to the massive cuts brought on by sequestration, the disaster relief section of FEMA’s budget will lose $1 billion this year. Following the devastation from Hurricane Sandy earlier this year, FEMA Administrator Craig Fugate said FEMA’s Disaster Relief Fund would pay out a total of $10.8 billion to storm victims by the end of the fiscal year. That would leave $2.5 billion in its disaster fund for the rest of the year. While testifying before Congress in March, he said he had concerns that there would be enough money to help state and local governments that help rebuild damaged infrastructure and public. Sequestration also cut $1.9 billion from transportation repair funding and other disaster programs.
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