Why Disaster Spending Keeps Increasing

Hurricanes, wildfires, floods, and winter storms are becoming more frequent, intense, and expensive. Climate change is leading to more extreme weather, aging infrastructure struggles to withstand disasters, and population growth in high-risk areas means more damage when disaster strikes.

The numbers don’t lie. In the 1980s, the U.S. spent around $18 billion annually on disaster recovery. By the 2010s, that number had jumped to $81 billion per year—with individual disasters like Hurricane Katrina and Hurricane Harvey surpassing $100 billion each. And the trend isn’t slowing down.

As these costs rise, federal agencies need more private-sector support to manage disaster response and recovery. That means major contracting opportunities for businesses ready to step in.

How Federal Agencies Manage Disaster Costs

The government isn’t just spending more—it’s also changing how it spends by prioritizing resilience and preparedness. Here’s how key agencies are adapting.

• FEMA (Federal Emergency Management Agency) has shifted focus from emergency response to long-term resilience projects like the Hazard Mitigation Grant Program (HMGP), which funds rebuilding efforts designed to prevent future damage.
• The U.S. Army Corps of Engineers leads infrastructure rebuilding and flood control efforts, helping to restore levees, dams, and storm barriers after disasters.
• The Department of Homeland Security (DHS) works on supply chain logistics, emergency communications, and deploying rapid-response teams for large-scale disasters.

At the heart of these efforts is federal contracting. Agencies can’t handle disaster recovery alone, which is why they seek private-sector partners to assist in rebuilding efforts.

How Your Business Can Secure Disaster Recovery Contracts

With billions in federal disaster recovery contracts available, businesses that are prepared, certified, and proactive have a major advantage.

• Register in SAM – Every disaster-related federal contract starts here. If you’re not in the System for Award Management (SAM), you can’t bid.
• Monitor FEMA and USAspending.gov – These sites post active disaster relief contracts covering debris removal, infrastructure rebuilding, emergency response, and supply distribution.
• Get the Right Certifications – Beyond SAM registration, certifications like:
  • HUBZone, SDVOSB, or 8(a) (set-asides that give small businesses an edge)
  • ISO 22301 (Business Continuity Management)
  • NFPA 1600 (Disaster/Emergency Management & Business Continuity)
  • CMMC (Cybersecurity Maturity Model Certification) if handling sensitive government data
• Leverage Set-Asides—Many disaster contracts are reserved for small businesses, with priority given to SDVOSBs, HUBZone-certified firms, and 8(a) companies.
• Be Ready to Mobilize—Agencies prefer contractors that can deploy quickly and scale operations quickly. Having a pre-positioned disaster response team can put you ahead of competitors.

How Contractors Play a Role in Disaster Recovery

After Hurricane Katrina, contractors played a critical role in:

• Debris removal and infrastructure repair for FEMA and the Army Corps of Engineers.
• Temporary housing construction for displaced residents.
• Emergency medical and supply distribution across affected states.

Similarly, in the aftermath of Hurricane Harvey, the federal government issued over $1.5 billion in contracts for:

• Flood damage assessment and levee repairs.
• Transportation and logistics support.
• Emergency response teams for food, water, and medical aid.

Businesses prepared with the right registrations and certifications were able to secure contracts quickly and provide critical services when they were needed most.

The Future of Disaster Recovery Contracting

With disasters increasing in frequency and severity, agencies are shifting their focus to prevention and technology-driven solutions.

• Predictive Disaster Response Models – AI-driven systems are identifying high-risk areas to allocate funding before disasters hit. Companies developing early-warning technology or climate risk assessments will see increased demand.
• Climate-Resilient Infrastructure – More money is being allocated to storm-resistant construction, flood mitigation, and wildfire prevention. Contractors specializing in green building materials and climate adaptation will have an advantage.
• Supply Chain Readiness – The government wants pre-approved vendors who can rapidly mobilize and deliver emergency resources. Businesses with strong logistics networks will be prioritized for contracts.

Want to Win Federal Disaster Recovery Contracts?

Disaster contracting isn’t just for massive corporations—it’s an opportunity for small businesses, construction firms, logistics providers, and emergency response teams.

USFCR can help you:

• Register in SAM (so you’re eligible to bid)
• Secure set-aside certifications (HUBZone, SDVOSB, 8(a), WOSB)
• Create a winning contracting strategy

Don't wait for the storm to hit before getting involved. Register your business with USFCR today, and stand ready to make a difference when it matters most. Together, we can build a stronger, more resilient future.

Register Now and Join the Effort

Top NAICS codes for:
Disaster Relief

• 562910 - Remediation Services (specifically for disaster recovery cleanup efforts)
• 624230 - Emergency and Other Relief Services
• Find more NAICS Codes here

 To speak with a Registration and Contracting Specialist, Call (866) 216-5343

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