Disaster Recovery Claims 36% of US GDP Growth as Federal Support Crumbles

America’s economy is cashing in on catastrophe. Disaster recovery has become a lucrative industry, with nearly $1T spent each year on response and rebuilding. Since 2000, about $7.7T — roughly 36% of total GDP growth — has come from post-disaster reconstruction, according to Bloomberg Intelligence’s Andrew John Stevenson.

• Stevenson’s “Prepare and Repair Index” of ~100 disaster-focused firms beat the S&P 500 by 6.5% annually from 2015–2025.
• Lowe’sLOW
  CFO Brandon Sink said “storm-related demand from Hurricanes Helene and Milton drove better-than-expected results” and lifted fourth-quarter sales.

The looming crisis: President Trump’s June decision to phase out FEMA after this hurricane season, combined with April’s shutdown of its prevention program and growing aid rejections, marks a shift in federal disaster policy. Monthly payments to North Carolina have dropped after the agency denied full cost-matching for the Helene cleanup in May. The retreat is expected to slow overall US growth as families face higher taxes and insurance costs while states turn to bond markets to fill funding gaps.