Construction and engineering firms are entering the 2026 hurricane season amid changes to federal disaster preparedness programs, climate data resources and flood-risk guidance.
Cuts and policy changes affecting the Federal Emergency Management Agency (FEMA) and National Oceanic and Atmospheric Administration (NOAA) have created additional uncertainty for firms that depend on federal information and funding when planning projects in areas exposed to hurricanes, flooding and other severe weather.
For architects, engineers and contractors, the changes could mean greater responsibility for evaluating site risks, determining appropriate design measures and protecting projects from weather-related losses.
Changes to Federal Disaster Programs
Several federal programs supporting flood mitigation and disaster preparedness have faced changes since 2025.
FEMA withdrew mandatory compliance with the Federal Flood Risk Management Standards in 2025. The agency also moved to end the Building Resilient Infrastructure and Communities program, although a court order later required the program to be restored.
Other programs, including the Hazard Mitigation Grant Program and Flood Mitigation Assistance, have also faced funding reductions or uncertainty.
NOAA has experienced reductions affecting climate and weather data collection. Changes to federal disaster reporting have also reduced access to some of the information that construction and insurance professionals have historically used to evaluate risk.
The National Flood Insurance Program has faced additional uncertainty after temporarily lapsing during the 2025 government shutdown. Its current authorization runs through September 2026.
These changes can affect how insurers evaluate projects and how construction professionals assess potential exposure.
Flood Risk Data May Require Additional Verification
FEMA flood maps remain an important resource for determining flood exposure, but construction firms may need to look beyond federal maps when evaluating individual project sites.
Local rainfall records, historical storm information, topographic data and private risk models can provide additional information when determining how a property could be affected by flooding.
This is particularly important for projects located near coastlines, rivers, low-lying areas or communities with a history of storm-related flooding.
Design Decisions Could Create Greater Liability
Changes to federal flood standards could also shift more responsibility toward project owners, architects and engineers.
Federal standards have provided a baseline for certain projects in flood-prone areas. With those requirements changing, firms may have to make more project-specific decisions about flood protection and resilient design.
That creates a potential liability issue if a structure suffers damage that could reasonably have been prevented through additional design measures.
Meeting minimum building code requirements may therefore not always provide sufficient protection for a project or the professionals responsible for its design.
State and local governments have historically relied on federal grants for resilience projects, Public Projects Face Funding Uncertainty
When federal funding is delayed, reduced or subject to legal challenges, public construction programs can also be affected.
Engineering and architecture firms working with municipalities may see projects delayed, redesigned or reduced in scope. Firms may also need to help public-sector clients navigate changing requirements while keeping projects financially and technically viable.
At the same time, changes in federal participation in building code development could leave firms relying more heavily on professional organizations and industry standards for technical guidance.
Six Ways Construction Firms Can Prepare
Construction companies can take several steps to reduce their exposure as hurricane and flood risks become more difficult to predict.
1. Conduct Site-Specific Flood Assessments
Do not rely exclusively on FEMA flood maps. Combine federal information with local weather records, historical storm data, topography and private risk models.
Firms should also confirm whether properties are covered by the National Flood Insurance Program and evaluate private insurance options where appropriate.
2. Design Beyond Minimum Code Requirements
Building codes should be treated as a baseline rather than the maximum level of protection.
Depending on the location and project, additional measures could include elevating mechanical equipment, using flood-resistant materials, waterproofing below-grade areas and improving site drainage.
The design should reflect the actual hazards at the property rather than relying solely on minimum requirements.
3. Create Detailed Emergency Plans
Each construction site should have a storm response plan that addresses more than employee evacuation.
Plans should identify how equipment, materials, hazardous substances and other vulnerable assets will be secured before a major storm.
Companies should establish these procedures before severe weather threatens a project rather than waiting until a storm is approaching.
4. Review Contracts and Responsibilities
Weather-related delays, equipment damage and disaster recovery can create disputes between contractors, owners and other project participants.
Companies should review contract language covering delays, force majeure events, equipment losses and responsibilities following a disaster.
A standard force majeure provision may not address every potential situation, particularly when questions arise over whether a project was adequately designed for known environmental risks.
5. Track Regulatory and Insurance Changes
Changes to disaster funding, flood insurance, permitting requirements and eligibility rules can affect project costs and schedules.
Construction firms that monitor these changes can identify potential problems earlier and help clients make decisions before projects are affected.
6. Consider Alternative Risk Financing
Traditional insurance may not fully address the risks faced by firms operating in areas exposed to hurricanes and flooding.
Some companies may benefit from alternative approaches, including parametric insurance, which can provide payments when predetermined conditions such as wind speeds or rainfall levels are reached.
Captive insurance and other risk-financing strategies may also be options for companies with significant exposure or multiple locations.
Preparation Is Becoming More Important
Federal resources for disaster preparedness and climate-risk assessment are changing, creating additional challenges for construction and engineering firms.
As hurricane season continues, companies may need to take greater responsibility for verifying site conditions, evaluating climate risks, designing beyond minimum requirements and clearly defining responsibilities in contracts.
For firms working in high-risk areas, stronger preparation can help reduce project disruption, limit liability and improve recovery when severe weather strikes.
