FEMA: Running Out of Funds?

As the damages of Hurricane Harvey are still being accounted for, the threat of two other tropical storms has the Federal Emergency Management Agency (FEMA) in need of more funding.

Hurricane Irma, another category 5 hurricane, is heading towards Florida, with Hurricane Jose following in its path.

Florida Sens. Bill Nelson and Marco Rubio wrote in a joint letter to Majority Leader Mitch McConnell and Minority Leader Charles Schumer addressing their concerns about FEMA rapidly running out of funds.

"FEMA is scheduled to run out of money by Friday, September 8, just two days before Hurricane Irma is expected to hit Florida," Sens. Nelson and Rubio wrote. "Unfortunately, the current disaster relief package Congress is considering for Hurricane Harvey doesn’t account for the additional costs FEMA will likely incur as a result of Hurricane Irma."

The letter also noted that even with the Harvey supplemental aid package, FEMA is likely to run out of funds before the end of September.

Fannie Mae has taken notice of Hurricane Irma’s incoming effects, releasing Thursday a reminder to homeowners and servicers that mortgage assistance options are available for those impacted by Hurricane Irma.

"It is important for those in the path of the storm to focus on their safety as they deal with the potential impact of Hurricane Irma," said Carlos Perez, SVP and Chief Credit Officer at Fannie Mae. "Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need.”

With FEMA expected to run out of money by the time Hurricane Irma hits, there is additional pressure put on Congress to provide more funding this week, Bloomberg reported.

“If it’s down to $1 billion or less, then I would say there’s a great concern,” said Elizabeth Zimmerman to Bloomberg, who until January was FEMA’s associate administrator.