FEMA under Department of Homeland Security (2003–present)
Following the attacks of September 11, 2001, Congress passed the Homeland Security Act of 2002, which created the Department of Homeland Security (DHS) to better coordinate among the different federal agencies that deal with law enforcement, disaster preparedness and recovery, border protection and civil defense. FEMA was absorbed into DHS effective March 1, 2003. As a result, FEMA became part of the Emergency Preparedness and Response Directorate of the Department of Homeland Security, employing more than 2,600 full-time employees. It became Federal Emergency Management Agency again on March 31, 2007, but remained in DHS.
President Bush appointed Michael D. Brown as FEMA's director in January 2003. Brown warned in September 2003 that FEMA's absorption into DHS would make a mockery of FEMA's new motto, "A Nation Prepared", and would "fundamentally sever FEMA from its core functions", "shatter agency morale" and "break longstanding, effective and tested relationships with states and first responder stakeholders". The inevitable result of the reorganization of 2003, warned Brown, would be "an ineffective and uncoordinated response" to a terrorist attack or a natural disaster.
Hurricane Katrina in 2005 demonstrated that the vision of further unification of functions and another reorganization could not address the problems FEMA had previously faced. The "Final Report of the Select Bipartisan Committee to Investigate the Preparation for and Response to Hurricane Katrina", released February 15, 2006, by the U.S. Government Printing Office, revealed that federal funding to states for "all hazards" disaster preparedness needs was not awarded unless the local agencies made the purposes for the funding a "just terrorism" function. Emergency management professionals testified that funds for preparedness for natural hazards were given less priority than preparations for counter-terrorism measures. Testimony also expressed the opinion that the mission to mitigate vulnerability and prepare for natural hazard disasters before they occurred had been separated from disaster preparedness functions, making the nation more vulnerable to known hazards, like hurricanes.
After allegations of mismanagement during Hurricane Katrina, the National Disaster Medical System (NDMS) was transferred from the Department of Homeland Security to the Department of Health and Human Services by the Pandemic and All-Hazards Preparedness Act, signed by President George W. Bush on December 18, 2006. In the same year, congress passed the Post-Katrina Emergency Management Reform Act of 2006, which made FEMA a more independent agency within DHS, and better define its primary mission. The act also added a Surge Capacity Force, which allows the Department of Homeland Security to supplement FEMA employees with additional personnel from various federal departments in the event the agency is overwhelmed. The Force has been activated for Hurricane Sandy, Hurricane Harvey, Hurricane Irma, Hurricane Maria, and the 2017 California wildfires.
In fall 2008, FEMA took over coordination of the Ready Campaign, the national public service advertising campaign in collaboration with the Ad Council, to educate and empower Americans to prepare for and respond to emergencies including natural and man-made disasters. The Ready Campaign (and its Spanish-language version, Listo) asks individuals to do three things: build an emergency supply kit, make a family emergency plan, and be informed about the different types of emergencies that can occur and how to respond. The campaign messages have been promoted through television, radio, print, outdoor and web PSAs, as well as brochures, toll-free phone lines and English- and Spanish-language websites.
In 2013, as a response to FEMA's response to Hurricane Sandy, congress passed the Sandy Recovery Improvement Act of 2013, which amongst other things allowed federally recognized tribes to directly request a presidential declaration of emergency.
The Stafford Act was amended by the Pets Evacuation and Transportation Standards Act (PETS Act) in 2006, and the Disaster Recovery Reform Act (DRRA) in 2018. DRRA made efforts to focus FEMA effort on improving resiliency, preparedness, and mitigating vulnerabilities for large disasters.
FEMA was put in charge of procuring medical supplies during the COVID-19 pandemic.
According to a tweet posted on April 12, 2022, by Deanne Criswell, the FEMA flag, used between 1981 and 2003, was reintroduced.