Markus Andrews

While the Federal Emergency Management Agency typically provides aid after federally declared natural disasters, it’s not designed to be a replacement for your home insurance policy, says a risk management and insurance professor.
What’s more, the agency itself is facing significant changes.
President Donald Trump said earlier this month that the administration plans to “start phasing [FEMA] out” after hurricane season.

Swannanoa resident Lucy Bickers, who received assistance from FEMA after Hurricane Helene damaged her property, holds a sign in support of the government disaster agency as she waits on the route of visiting U.S. President Donald Trump’s motorcade in Swannanoa, North Carolina, U.S., January 24, 2025. 
Jonathan Drake | Reuters

As the Trump administration moves to wind down the Federal Emergency Management Agency, changes could make it harder for homeowners to recover from a natural disaster, experts say.
That underscores a point insurance experts make: FEMA provides aid for states and individuals in the event of a federally declared natural disaster, but it’s not meant to replace your home insurance policy, according to Charles Nyce, a risk management and insurance professor at Florida State University.

“There’s a lot of different things that FEMA does really well, but one of the things they’re not designed for is to be a replacement for insurance coverage for individuals,” said Nyce.

How FEMA could change

President Donald Trump said in a June 10 press briefing that he plans to “start phasing [FEMA] out” after this year’s hurricane season, which spans from June 1 to November 30.
Trump also said the administration would “give out less money” in disaster aid to states and “give it out directly” from the president’s office: “We’re going to do it much differently.” 
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“Over the next couple of months, we’ll be working on reforms and what FEMA will look like in the future as a different agency as under the Department of Homeland Security,” DHS Secretary Kristi Noem said in the briefing.

Asked about the potential changes, a FEMA spokesperson told CNBC that the agency is “laser focused” on disaster response for this hurricane season and “protecting the American people.”
The Department of Homeland Security proposed to cut $646 million from FEMA’s budget for fiscal year 2026, according to a May letter from the Office of Management and Budget. In April, FEMA announced it was ending a disaster prevention and mitigation grant program, returning $882 million in funding to the Treasury.
Such actions are “reckless,” Sen. Raphael Warnock, D-G.A. wrote in a June 5 letter to Noem.
The administration and DHS “have haphazardly and irresponsibly worked to dismantle the nation’s lead disaster response agency without any workable alternative or sense of direction,” he wrote.

It puts more of an onus on citizens to be prepared.

Charles Nyce
a risk management and insurance professor at Florida State University

“FEMA is not going to be able to operate in the same way that it has in the past,” said Jeremy Porter, head of climate implications at First Street Foundation, a nonprofit research organization focused on climate risk.
He and other experts say that the administration’s proposed changes would put more responsibility on states and municipalities to come up with the financial resources to help individuals recover from natural disasters.

What kinds of aid FEMA provides

While FEMA provides grants and resources to help individuals and municipalities recover from federally declared disasters, the aid is designed to be a supplement for something that’s not covered by your homeowners insurance policy, Nyce said.
The way the agency provides aid to individual homeowners is by giving small grants available for uninsured losses, Nyce said. The money can be used to cover temporary housing for a day or week, for example.
The average payout for individual assistance grants through FEMA was $3,522 from 2010 to 2019, according to a 2024 report by the Brookings Institution, a non-partisan think tank in Washington, D.C.

The agency also offers disaster loans with low interest rates through the Small Business Association, which cover losses not covered by insurance, grants or other resources. According to a FEMA release from earlier this month, interest rates can be as low as 2.688% for homeowners and renters, 4% for businesses and 3.25% for nonprofit organizations, with terms of up to 30 years.
“They’re really designed as a way for people just to have enough money to figure out what their next steps are,” Porter said.
Typically, FEMA will assist a state’s emergency management agency after a disaster, said Nyce. But now, the expectation is that states will take on a large role in disaster recovery.
“With cuts at the federal level for disaster recovery, it’s going to put more of a financial burden on the states to enable recovery,” Nyce said.

‘More of an onus on citizens to be prepared’

It’s uncertain how much and what kind of FEMA natural disaster aid will be available for individuals after the agency goes through changes, experts say.
“It puts more of an onus on citizens to be prepared,” Nyce said.
One way to do that is by taking a closer look at your home insurance coverage. See if you need to make changes to your policy — you want to avoid being underinsured, or risk your insurer paying less than the full claim. You might also need additional coverage, such as flood insurance.

Make sure you have enough supplies to “fend for yourself for a day or two, or three,” Nyce said. That includes dry food, batteries, water and a radio. It’s also smart to collect key financial documents to store in a safe place.
Additionally, if officials in your area are advising residents to evacuate in the face of a disaster, you may want to consider doing so rather than trying to shelter in place at home, he said. 
“It may be more prudent to leave,” Nyce said.  More

Zohran Mamdani, who is now the likely favorite to win the general election in November, promised to freeze rent increases in stabilized units during his campaign.
The New York City mayor has the power to appoint representatives to the regulatory board that oversees rent-controlled apartments.
Flagstar, previously known as New York Community Bancorp, faced pressure last year in part due to its real estate exposure.

New York mayoral candidate, State Rep. Zohran Mamdani (D-NY) speaks to supporters during an election night gathering at The Greats of Craft LIC on June 24, 2025 in the Long Island City neighborhood of the Queens borough in New York City.
Michael M. Santiago | Getty Images

Shares of New York regional bank Flagstar slid nearly 4% on Wednesday after the apparent victory of Zohran Mamdani in the New York City Democratic mayoral primary.
Flagstar is the rebranded name of New York Community Bancorp, which came under pressure in 2024 in part due to its real estate exposure. Former Treasury Secretary Steven Mnuchin led a $1 billion investment into the company in March of that year.

Mamdani, who is now the likely favorite to win the general election in November, promised to freeze rent increases in stabilized units during his campaign. The New York City mayor has the power to appoint representatives to the regulatory board that oversees rent-controlled apartments. A pause on rent increases could hurt the profit profile of multi-family rental properties.

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Flagstar Financial in the past day

The exact impact of such a rent freeze on Flagstar’s books is unclear. Deutsche Bank analyst Bernard von-Gizycki estimated that between $16 billion and $18 billion of the bank’s multi-family loan portfolio would be exposed to New York rent regulations, or about a quarter of bank’s total loan book. Morgan Stanley analyst Manan Gosalia estimated that the number drops to $11 billion to $12 billion when accounting only for buildings where more than half of units are rent-regulated.
However, Barclays analyst Jared Shaw said in a note to clients that current rent regulations are already keeping price hikes below the pace of cost increases, and added “we do not see this prospect as something that would change the investment thesis.” Gosalia said a short-term rent freeze should be “manageable” for Flagstar but a longer-term pause could spur the bank to raise its loan loss reserves.
Office-focused real estate stocks with New York City exposure were also under pressure on Wednesday, with SL Green Realty and Vornado Realty Trust fell 5.7% and 6.7%, respectively. Mamdani has called for a higher corporate tax rate, though as mayor he would have little control over that area of policy.
Mamdani led former New York Gov. Andrew Cuomo after first-round ballots were counted on Tuesday, and Cuomo conceded the race. However, the primary uses a ranked choice voting system, which means that Mamdani will not officially be the Democratic nominee until he surpasses 50% of the vote in a later counting round.

In the general election, Mamdani is expected to face Republican nominee Curtis Sliwa and some independent candidates, including incumbent Mayor Eric Adams.
— CNBC’s Michael Bloom contributed reporting. More

New Medicaid work requirements proposed in Republicans’ “One Big Beautiful Bill Act” may prompt millions of Americans to lose coverage.
Individuals ages 19 to 64 would need to work at least 80 hours per month to be eligible for coverage, unless they qualify for certain exemptions.
Here’s what experts say about the proposal.

American flags are displayed on the lawn of the National Mall with the U.S. Capitol Building in the background on June 2, 2025, in Washington, D.C.
Kevin Carter | Getty Images News | Getty Images

‘Big beautiful’ bill includes Medicaid work requirements

The House and Senate versions of the “big beautiful” bill would impose federal work requirements on Medicaid for the first time.

Per the House and Senate proposals, individuals ages 19 to 64 who apply for Medicaid or who are enrolled through Affordable Care Act expansion group would need to would need to work or participate in qualifying activities for 80 hours per month.
Adults may be exempt if they have dependent children or have qualifying circumstances such as medical conditions; however, “exemptions don’t always work, and people could lose coverage anyway,” Orris said.
Medicaid work requirements proposed in the House bill would cut federal spending by $344 billion over 10 years, representing the legislation’s largest source of Medicaid savings, according to KFF, a nonprofit provider of health policy research.

People protest on the national mall during the Unite for Veterans rally on the National Mall in Washington D.C., on Friday, June 3, 2025.
Dominic Gwinn | Afp | Getty Images

Current law prohibits basing Medicaid eligibility on work requirements or work reporting requirements, according to KFF.  
“Many people on Medicaid, if they’re able to, are already working,” said Robin Rudowitz, director of the program on Medicaid and the uninsured at KFF.
However, some states may implement work requirements if they receive approval through waivers. Georgia is currently the only state with a Medicaid work requirement. “Several” other states have recently submitted waiver requests to put such requirements in place, according to KFF.
Arkansas previously implemented Medicaid work requirements. However, estimates have shown while more people became uninsured because of that policy, there were not meaningful increases in employment, according to Rudowitz.

Senate work requirements would include some parents

The Senate version of the bill introduced a “harsher” take on the work requirements that would apply to some parents, Orris said. The Senate calls for limiting parental exemptions to those with children ages 14 and under, rather than all parents of dependent children as the House proposed.
Individuals who apply for Medicaid coverage would need to meet work and other requirements for one or more consecutive months before they apply. Eligibility redeterminations would be conducted at least twice per year to ensure enrollees still meet those requirements.
The Senate version proposes capping the look-back period for showing compliance with work requirements to three months, which on net may be helpful to people, Orris said.

If an individual is denied coverage or disenrolled because they do not meet the Medicaid work requirements, they would be ineligible for subsidized marketplace coverage.
The Senate bill also allows for a longer timeline for states to comply with the Medicaid work requirements. The chamber’s bill would give states the ability to ask for a good faith waiver that would give them an additional two years to come into compliance with the provision, or until the end of 2028, rather than the end of 2026 in the House version. More

Amid heightened concern about college access and affordability, The Princeton Review ranked colleges by how much financial aid is awarded and how satisfied students are with their packages.
“It’s really not what colleges are charging that matters, it is what actual students and families are paying after scholarships and grants are deducted,” says Robert Franek, The Princeton Review’s editor in chief.
At some schools, the average scholarship given to students with need was more than $70,000 in 2024-25.

The federal student loan system is facing a massive overhaul, which could result in less college aid. But higher education is only getting more expensive.
To bridge the gap, some schools are offering substantial financial aid packages, according to The Princeton Review.

College tuition has surged by 5.6% a year, on average, since 1983, significantly outpacing other household expenses, a recent study by J.P. Morgan Asset Management found.
For the 2024-25 school year, tuition and fees plus room and board for a four-year private college averaged $58,600, up from $56,390 a year earlier, according to the College Board. At four-year, in-state public colleges, it was $24,920, up from $24,080.
And yet, the Trump administration’s budget proposal for fiscal 2026 calls for scaling back financial aid, including reducing the maximum federal Pell Grant award to $5,710 a year from $7,395, as well as curbing the federal work-study program. The proposed cuts would help pay for the landmark tax and spending bill Republicans in the U.S. Congress hope to enact.
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“Inflation and cuts in federal and state spending are causing schools to increase tuition, in some cases dramatically,” said Robert Franek, editor in chief of The Princeton Review.

However, “it’s really not what colleges are charging that matters, it is what actual students and families are paying after scholarships and grants are deducted — that’s what students and their parents need to focus on,” Franek said.
Grants are considered the most desirable kind of financial assistance because they typically do not need to be repaid. “Grants are the magic word,” Franek said.

Top 5 private colleges for financial aid

Among the top five private schools on The Princeton Review’s list, the average sticker price — including tuition and fees plus room and board — was around $90,000 in 2024-25. The average scholarship grant awarded to students with need was more than $66,000. 

Williams College
John Greim | LightRocket | Getty Images

1. Williams CollegeLocation: Williamstown, MassachusettsSticker price: $90,750Average need-based scholarship: $74,113Average total out-of-pocket cost: $16,637
2. California Institute of TechnologyLocation: Pasadena, CaliforniaSticker price: $86,181Average need-based scholarship: $71,378Average total out-of-pocket cost: $14,803
3. Yale UniversityLocation: New Haven, ConnecticutSticker price: $87,150Average need-based scholarship: $69,164Average total out-of-pocket cost: $17,986
4. Reed CollegeLocation: Portland, OregonSticker price: $87,010Average need-based scholarship: $50,413Average total out-of-pocket cost: $36,597
5. Pomona CollegeLocation: Claremont, CaliforniaSticker price: $91,134Average need-based scholarship: $67,027Average total out-of-pocket cost: $24,107

Top 5 public colleges for financial aid

Among the five public schools on this list, the average scholarship grant awarded in 2023-24 to students with need was more than $20,000.  

People walk on the campus of the University of North Carolina Chapel Hill on June 29, 2023 in Chapel Hill, North Carolina.
Eros Hoagland | Getty Images

1. University of North Carolina at Chapel HillLocation: Chapel Hill, North CarolinaSticker price (in-state): $24,134Average need-based scholarship: $19,921Average total out-of-pocket cost: $4,213
2. New College of FloridaLocation: Sarasota, FloridaSticker price (in-state): $20,271Average need-based scholarship: $16,483Average total out-of-pocket cost: $3,788
3. University of Michigan, Ann ArborLocation: Ann Arbor, MichiganSticker price (in-state): $34,176Average need-based scholarship: $26,860Average total out-of-pocket cost: $7,316
4. University of VirginiaLocation: Charlottesville, VirginiaSticker price (in-state): $40,313Average need-based scholarship: $27,233Average total out-of-pocket cost: $13,080
5. Truman State UniversityLocation: Kirksville, MissouriSticker price (in-state): $23,076Average need-based scholarship: $10,889Average total out-of-pocket cost: $12,187
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Proposed health-care cuts in the “One Big Beautiful Bill Act” may prompt an estimated 16 million Americans to lose health coverage, according to Congressional Budget Office estimates.
That could push medical debt up by $50 billion, a new report from think tank Third Way finds.
The number of people in families facing medical debt could increase by 5.4 million, with debts increasing by up to $22,800.

The Good Brigade | Digitalvision | Getty Images

Proposed federal spending cuts to health care in Republicans’ “One Big Beautiful Bill Act” may increase some families’ medical debts by as much as $22,800, according to a new report from Third Way, a Washington, D.C.-based think tank.
The Republican budget bill proposes $1.1 trillion in cuts to health care that target both Medicaid and Affordable Care Act coverage. An estimated 16 million people may lose health coverage based on those proposals, the Congressional Budget Office has estimated — 7.8 million who would lose Medicaid and 8.2 million who would lose Affordable Care Act coverage.

Overall, medical debt would increase by $50 billion as a result of the budget bill changes — a 15% rise over today’s $340 billion in unpaid debts, according to Third Way.

‘Medical debt stands in the way of the American Dream’

Health coverage losses would increase the number of people in families with medical debt by 5.4 million, according to Third Way’s report. More than 100 million people currently have medical debt in the U.S., according to KFF.
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An estimated 2.2 million households would have medical debt because of Medicaid coverage losses, while 3.2 million more people would rack up balances due to Affordable Care Act reforms that may prompt coverage losses or higher premiums, according to Third Way.
Without coverage, families may see their medical debts increase by as much as $22,800, according to Third Way’s report. About 87% of households that previously had no medical debt would accumulate an average of $22,800 in balances. Meanwhile, 13% of households may accumulate an additional average of $8,790 in medical debt on top of $13,490 in existing balances.

“That’s going to put people’s dreams back, if they’re hoping to go to college or hoping to have a solid retirement or hoping to buy another house,” said David Kendall, senior fellow for health and fiscal policy at Third Way. “Medical debt stands in the way of the American dream, and we shouldn’t make it worse.”

Health insurance ‘makes a measurable difference’

The White House said proposed federal spending cuts are aimed at eliminating “waste, fraud and abuse” in government programs including Medicaid. The Trump administration has said the “big beautiful” bill is a potential “economic windfall for working and middle-class Americans” through tax cuts, higher wages and higher take-home pay.
In a Monday letter that cites the Third Way report, Sen. Jeff Merkley, D-Ore., ranking member of the Senate Budget Committee, and Democratic Sens. Cory Booker of New Jersey, Chuck Schumer of New York and Ron Wyden of Oregon, urged Republican leaders to reconsider the proposed health-care cuts.

Addressing medical debt is a “national priority” with “bipartisan support,” the senators wrote in a letter to Senate Majority Leader John Thune, R-S.D., and House Speaker Mike Johnson, R-La. Currently, 16 states have moved to either cancel medical debt or eliminate medical debts from credit reports, they wrote.
“Medical debt is a complex problem, but having health insurance coverage makes a measurable difference,” the senators wrote.
They pointed to a 2013 study in The New England Journal of Medicine that found Medicaid coverage reduces medical debt rates by 13.28 percentage points. The study, published ahead of state Medicaid expansion under the ACA, looked at the effects of Oregon’s 2008 Medicaid expansion.
Americans with unpaid medical balances may face “dire” consequences, which may include delaying or going without needed care, cutting back on food or other necessities or taking on additional debt, the lawmakers wrote.
In addition to personal setbacks, medical debt also affects consumer spending, which may prevent economic growth, they said.
“If the Republican reconciliation bill passes these drastic health care cuts into law, working class families across America risk going further into medical debt,” the senators wrote.
“It is not too late to stop these cuts,” they wrote. More