How CPD Layoffs Could Hinder Effective Risk Management
The United States has always grappled with natural disasters- hurricanes, wildfires, and floods but with climate change, the frequency has increased. Federal agencies, especially the Federal Emergency Management Agency (FEMA) and the Office of Community Planning and Development (CPD), a division within the Department of Housing and Urban Development (HUD), play vital roles in aiding community recovery from these events. While FEMA’s funding typically kicks in immediately following a disaster, some events exceed its financial capacity. In these cases, Congress can authorize additional assistance through CPD’s Community Development Block Grant (CDBG) program, which provides long-term recovery funding. This funding becomes crucial for long-term rebuilding efforts, particularly in communities already vulnerable to climate impacts.
According to an article in The New York Times, The Trump administration plans to cut staff in the CPD office by 84%, reducing the number of workers from 936 to 150. If CPD’s capacity diminishes due to staff reductions or restructuring, the effects could severely undermine the federal government’s overall strategy for climate resilience and recovery.
As government agencies lean more into Enterprise Risk Management (ERM) to help develop and refine strategies that consider climate risks, it has become imperative for agencies like CPD to effectively integrate ERM into their framework. FEMA has been a leading agency in the ERM space. In April 2024, the agency released the "Climate Adaptation Planning: Guidance for Emergency Managers," encouraging state and local emergency managers to integrate projections—such as rising sea levels, extreme heat, and stronger hurricanes—into their planning processes. This guide marked a proactive approach from FEMA to recognize the necessity of embedding climate considerations into its ERM framework and confronting the mounting challenges posed by climate change.
While CPD has not traditionally employed ERM in the same structured manner as FEMA, these layoffs could significantly impact its ability to develop and implement a climate-informed disaster response strategy within a newly created ERM framework. For example, CPD could evaluate risks associated with its ongoing community development projects, including climate change impacts, financial risks tied to grant allocations, or operational risks related to project delays.
Implications for FEMA
While the layoffs are primarily targeting CPD, any weakening of this agency has far-reaching consequences for FEMA's ability to execute a cohesive, climate-informed disaster management strategy:
Coordination Gaps: FEMA’s ERM approach relies heavily on interagency collaboration. A reduced CPD workforce could disrupt communication channels and joint initiatives.
Increased Vulnerability for At-Risk Communities: When disaster recovery exceeds FEMA’s funding, CPD provides additional support. If CPD’s capacity to manage and distribute funds is compromised, historically marginalized communities may miss out on essential assistance. Politicians in disaster-prone regions, such as Houston, Texas, have expressed strong disapproval, emphasizing that such cuts could leave communities vulnerable to future catastrophes. U.S. Representative Lizzie Fletcher described the move as a "disaster in itself," highlighting the necessity of collaborative efforts in disaster recovery to ensure the efficient and ethical use of federal funds (Houston Chronicle)
Slower Implementation of Climate Guidance: FEMA’s climate adaptation guidance presumes partnerships with other agencies, including CPD. Cuts to CPD staff could slow down or complicate the implementation of these guidelines at local and state levels.
Policymakers should consider how maintaining the capacity of both agencies will help analysts execute climate-informed ERM strategies effectively and how the CPD layoffs could have a lasting impact on rebuilding efforts after major disasters —particularly those exacerbated by climate change.
