Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why Government Rebuilds After Disasters Cost 50 Percent More
When a natural disaster strikes, the federal government typically reimburses state and local rebuilding costs — but a 2025 GAO investigation found that disaster recovery projects funded by federal grants come in at an average of 47 percent over budget, with some exceeding initial estimates by 300 percent. In this episode, Lucas and Luna dig into why: from the 'use-it-or-lose-it' pressure on grant deadlines to the perverse incentives of cost-plus contracting and the fragmentation between FEMA, HUD, and state agencies that creates duplication and waste. They use the example of the…
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