Trump's FEMA cuts drive MacKenzie Scott's $60M push to fill disaster recovery gaps

MacKenzie Scott's latest $60 million donation to the Center for Disaster Philanthropy (CDP) underscores a growing trend as philanthropists step in to address gaps left by federal policy shifts under President Donald Trump. The gift, the largest in CDP's 14-year history, follows a broader pattern of Scott's giving, with over $19 billion donated since 2019, according to MarketScreener. The timing is critical as climate disasters intensify and federal support for disaster recovery faces uncertainty, with Trump repeatedly proposing cuts to FEMA and disaster resilience programs, according to Smart Cities Dive.

The donation to CDP aligns with Scott's focus on long-term disaster recovery and equity. The nonprofit emphasizes medium- and long-term community rebuilding, areas often overlooked in emergency response. CDP President Patricia McIlreavy described the gift as a "transformative investment" that will bolster preparedness efforts and address systemic vulnerabilities to hazards, Morningstar reported (see Morningstar). The funding will also support CDP's own relief initiatives, such as its Atlantic Hurricane Season Recovery Fund, which will soon aid Hurricane Melissa victims in the Caribbean, as MarketScreener reported.

Scott's philanthropy has long prioritized unrestricted grants, allowing recipients flexibility in usage. For McIlreavy, who learned of the donation via a surprise September phone call, the lack of restrictions was invaluable. "People would come in and say 'I want pizza, but I don't want to pay for the staff to make it,' " she quipped, highlighting the challenge nonprofits face in securing operational funding, according to U.S. News. This approach has made Scott a polarizing figure in the nonprofit world, with some grantees expressing gratitude for the spontaneity while others lament the unpredictability, according to Philanthropy.

The urgency of Scott's latest gifts is amplified by the escalating climate crisis. The U.S. has already faced 14 disasters exceeding $1 billion in damages this year, totaling $101.4 billion, according to Climate Central. Trump's administration has exacerbated the strain by cutting FEMA staff, canceling resilience programs, and delaying disaster declarations, even when assessments confirm extensive damage, Smart Cities Dive reported. Federal Emergency Management Agency (FEMA) has also delayed $11 billion in pandemic-related reimbursements, citing a projected shortfall in its Disaster Relief Fund, Smart Cities Dive said.

Scott's recent donations extend beyond CDP. This month, she gave $40 million to the African American Cultural Heritage Action Fund and $60 million to the Freedom Fund, which combats modern slavery. Last month, she donated $70 million to the United Negro College Fund (UNCF), a historic institution supporting minority students, Philanthropy reported. These grants reflect her ongoing commitment to racial equity and community resilience, themes she reiterated in an October essay that downplayed her own giving while emphasizing smaller acts of kindness, according to AP News.

The shift in disaster funding responsibility from federal to state and local governments has left many underprepared. A National Association of Counties report warns that prolonged delays in FEMA reimbursements could cripple local disaster response capabilities, Smart Cities Dive reported. Meanwhile, Scott's unrestricted grants offer a buffer, though critics argue they cannot fully replace the scale of federal support. "When people are facing disasters across this country, not knowing what may come, how they may get assistance and from whom, that steals a bit of the hope that is intrinsic in any recovery," McIlreavy said, as U.S. News reported.

As Scott continues to reshape the philanthropy landscape, her actions highlight the growing role of private donors in addressing systemic gaps. With Trump's policies creating an unpredictable environment for disaster recovery, the Center for Disaster Philanthropy and similar organizations may increasingly rely on high-profile gifts to fill the void.