Pew: How states pay for natural disasters in an era of rising costs

A new Pew study sheds light on how states utilize budgeting tools in response to natural disasters. The study identifies five key tools used by states — statewide disaster accounts, rainy day funds, supplemental appropriations, transfer authority, and state agency budgets — and discusses eligibility and restrictions around each. Not all states have access to each tool, and their availability is displayed in the graphic, below. While Pew’s research does not specifically address COVID-19, states are already beginning to use some of these budgeting measures to address their emerging shortfalls.