The United States has experienced a record-breaking 23 billion-dollar disasters in 2023, highlighting the country’s struggle to adapt to climate change. This includes the devastating fire in Maui, which claimed the lives of at least 115 people, the deadliest wildfire in over a century. Hurricane Idalia, a Category 3 storm, also struck western Florida, and a hailstorm in Minnesota caused widespread power outages for over 25,000 homes and businesses.
These disasters are a consequence of increasing air and water temperatures caused by the burning of fossil fuels. As a result, hurricanes are becoming stronger, rainfall is intensifying, and wildfires are spreading faster. The National Oceanic and Atmospheric Administration tracks billion-dollar disasters in the US, and their data shows a steady increase from three in 1980 to 22 in 2020. The current year has already surpassed that record.
However, the growing toll of these disasters reveals more than just the impacts of global warming. Since Hurricane Sandy in 2012, the federal government has invested billions of dollars in making American communities more resilient to climate change. This includes initiatives such as sea walls, storm drains, building science, and forest management. Despite these efforts, the increasing number and cost of disasters demonstrate the limitations of these resilience measures.
Recognizing these concerns, the Biden administration is increasing spending on resilience. However, experts question the effectiveness of simply pouring more money into the issue. They argue that the current funding disproportionately benefits wealthy cities, leaving smaller towns, which often need it more, overlooked.
“Rural communities really are on the front lines of climate change,” says Kristin Smith, a researcher at Headwaters Economics. She has studied the distribution of federal resilience funding and emphasizes that many rural communities lack the resources to combat the impacts of climate change.
To address these challenges, the Biden administration is urging state and local governments to adopt stricter building codes, which can significantly reduce the damage caused by flooding, hurricanes, and wildfires. However, stricter codes increase upfront costs for homes, which can deter potential homeowners, especially during a housing shortage.
The insurance industry also faces significant concerns as disasters become more frequent and expensive. Insurers are increasingly reluctant to provide coverage in high-risk states such as Florida, California, and Louisiana. The Maui wildfires have raised questions about the sustainability of the insurance market in Hawaii as well.
As insurance becomes unaffordable or unavailable, it can lead to broader economic decline, impacting home values and local property-tax collection. This downward cycle, previously limited to highly susceptible areas, risks becoming more widespread as high-cost disasters occur more frequently.
Amy Chester, managing director of Rebuild by Design, emphasizes the need for the United States to take climate adaptation more seriously. It is not just about spending money on resilience, but also requiring state and local governments to build infrastructure to higher standards.
Adapting to climate shocks also means having honest conversations about helping people relocate from vulnerable areas. There may be limits to where we can safely live given the risks associated with climate change. In the meantime, it is important to recognize that billion-dollar disasters affect everyone, as the rising federal disaster costs ultimately impact us all.