Author: Jessica Wong

As Texas rapidly grows, moves to improve infrastructure could hurt small businesses. What started as a calculated business move in a fast-growing area turned into a major setback for Ricky Jordan, president of Fifth Gear Automotive.

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“It really sucks,” he said last month to WFAA after his shop in Argyle, Texas was forced to close and the building was demolished due to a road expansion.

"I’ve lived in this area for 35 years," he said. "This was really an up-and-coming place that needed car repair. There wasn’t a lot here."

He opened Fifth Gear’s second location off U.S. 377 in 2020. “We understood that there was going to be some road expansion that affected the parking lot, so we did a lot of due diligence in the beginning prior to building or buying it to get compliant” said Jordan.

The Texas Department of Transportation (TxDOT)’s long-term infrastructure project plans include widening the highway to four lanes and adding medians, sidewalks, and left-turn lanes.

Jordan said he had no problem working with the county on the affected parking and fire lane issues, but then things took a sudden turn late last year. He said “We had no issues up until we got notification we had to leave.”

What is eminent domain and how can it affect your business?

That notification didn’t come from TxDOT, but from Atmos Energy, a Dallas-based natural gas-only distributor. A spokesperson for the utility company confirmed to WFAA they are required to perform pipeline replacements in accordance with the state’s road expansion project.

“We really didn’t understand we were going to lose the building until the very end. And we didn’t really understand timelines to the very end,” Jordan said. According to him, Atmos said it needed to run gas lines through the land where his shop stood.

To make matters worse, the building was demolished months after his business was told to leave.

Jordan said he was required to vacate the property by January 31, but the building wasn’t demolished until mid-June. He said, “We could have continued operations until they actually needed to tear the building down, that would have saved me months of, at the least, staying in business.”

The upheaval faced by Fifth Gear Automotive is due to a legal mechanism known as eminent domain. It allows the government to take private property for public use, think highways, pipelines, railroads, schools, in exchange for “just compensation.”

“We always prefer to acquire property rights through negotiation,” said Atmos in its statement. “When that is not possible, the courts have a process for acquiring the easement and compensating the landowner.”

That "just compensation" is usually based on fair market value. It may also include certain damages if your remaining property’s market value is diminished by the acquisition itself or by the way the condemning entity will use the property, says the Texas Landowner’s Bill of Rights.

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It sounds fair, but isn’t always in practice.

For example, in Jordan’s case, the financial and emotional pain may be much deeper than the compensation. "It’s basically cut our business in half and taken us to a point where it’s an investment to stay in business, not a profitable venture," he said.

Negative effects of eminent domain

Here’s how eminent domain works:

• The government identifies the land needed for a project.
• They offer the owner “just compensation.”
• If the owner and the government cannot agree on the value of the property, the government can initiate a legal process called condemnation, filing a claim for the property in court.

Eminent domain is meant to allow the building of better public infrastructure, but for small business owners, it can bulldoze more than just property. When timelines shift or communication is poor, the financial fallout can hit like a wrecking ball.

Fifth Gear Automotive has relocated to a temporary office about two miles away off Highway 407, with hopes of opening a new permanent site there in 2026.

"I’m excited about the investments that we’re making in this area," Jordan said. "We need larger roads and better infrastructure to support a growing city and town, but you need to be very mindful of the businesses and how it impacts the people around."

“By imposing tremendous costs (both social and economic) in the form of lost communities, uprooted families and destroyed small businesses, eminent domain often thwarts, rather than helps, economic growth,” says the Institute for Justice. “Instead of seizing private property, cities can streamline regulatory barriers, like permitting and zoning laws, and usher in development without eminent domain.”

In 2006, the U.S. Government Accountability Office (GAO) produced a report on the use of eminent domain by state and local governments.

Property rights groups and a national community organization described the negative effects like loss of small businesses and jobs, decreases in affordable housing, and the dispersal of communities.

They also said property owners may be hurt by lack of notice, blight designations that negatively impacted neighboring nonblighted properties, significantly undervalued appraisals, and inadequate compensation.

If your business is near a major public works project, talk to a lawyer early, even before the notices arrive.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A $14.6 billion web of deceit that stretched across the country has prompted a massive federal crackdown in the U.S. health care system. More than 300 people are facing charges nationwide in what the Justice Department calls the largest health care fraud takedown in American history.

In North and South Carolina, prosecutors say scammers siphoned off over $20 million in taxpayer funds by filing fraudulent claims, targeting the most vulnerable, including severely disabled children.

“Republican and Democrat, we’re all here with one goal and that is to eradicate health care fraud,” said U.S. Attorney Russ Ferguson, according to WCNC.

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Fake clinics, stolen IDs and sham services

The Carolina cases are part of what officials are calling “Operation Border War,” named after the investigation into a network of fake companies near the border between North and South Carolina operated with the alleged goal of defrauding Medicaid.

A multi-state probe uncovered two major schemes, both operating out of Charlotte and crossing state lines. In the first case, authorities say Donald Saunders and seven co-conspirators allegedly stole $21 million from South Carolina’s Medicaid program by filing false claims using stolen patient information of severely disabled children.

But these kids never received care.

“The majority, nearly all of these were severely disabled children,” said South Carolina Attorney General Alan Wilson. “Children who were quadriplegic or nonverbal or autistic, billing for services that these minor, severely disabled children never received.”

Investigators say the suspects made up fake medical records, billed for nonexistent therapies and cashed in to the tune of $21 million.

In a separate North Carolina scheme, Crystal Jackson from Charlotte allegedly raked in nearly $2 million by billing Medicaid for services to patients who were either deceased or in jail.

“She held herself out as a licensed provider of health care. She was not,” said North Carolina Attorney General Jeff Jackson. “She provided services to folks who were incarcerated or deceased, or at least claimed to.”

The Carolinas’ cases are just a part of the nationwide sweep, with 324 defendants, nearly 100 licensed medical professionals and 25 doctors now facing federal and state charges.

While the Justice Department says $14.6 billion in fraudulent claims were submitted nationwide, only a fraction — about $2.9 billion — was actually paid out. In the Carolinas alone, scammers are accused of successfully stealing more than $20 million from Medicaid.

Attorney General Alan Wilson says the crackdown in the Carolinas and nationwide sends a clear message: “If you continue … defrauding the Medicaid system, you are going down.”

Authorities say the investigation is far from over, and more arrests could be coming. Both state attorneys general are urging whistleblowers and concerned citizens to step forward.

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How to spot and fight health care fraud

Health care fraud isn’t just a government problem; it drains taxpayer dollars, raises insurance costs and undermines care for those who truly need it. Here’s what to look for and how to stop it.

• Review medical bills and statements: Always check Explanation of Benefits (EOB) statements carefully. Keep your eyes peeled for services you didn’t receive or duplicate charges.
• Protect your personal information: Don’t share your Medicaid or Medicare numbers except with trusted medical providers. Fraudsters often steal patient IDs to file fake claims.
• Ask questions: If a provider recommends expensive tests or treatments, ask why. Get second opinions if something feels off.
• Report anything suspicious: If you suspect fraud, like billing for services never received or fake providers, contact your state Medicaid fraud control unit or the U.S. Department of Health and Human Services’ Office of Inspector General.
• Document everything: Keep copies of all medical records, bills and communications with health care providers.

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Marty from Spokane, Washington, thought he was taking a smart step toward debt-free homeownership. But pulling $400,000 from his 401(k) to buy a house left him with a staggering $140,000 tax bill.

“I just recently found out that when I go to file my taxes, I am going to owe roughly $140,000,” he said, calling into The Ramsey Show. “I really don’t want to do a payment plan with the IRS, but I just don’t know the best path forward.”

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Marty thought he had paid all the fees and taxes when he withdrew the money, but said, “I was misinformed that it had been paid… and I didn’t realize it hadn’t been done until I went to file my taxes.”

The Ramsey Show says it’s better to owe a bank than the IRS

Marty has a few ways to come up with the money: He could use a line of credit like a HELOC or credit card, dip into his $60,000 in savings, or take out a personal loan from a bank. But The Ramsey Show co-hosts Jade Warshaw and Rachel Cruze were clear: some of those options could make things worse.

They advised against using a home equity line of credit (HELOC) or a credit card.

“I would not do a HELOC,” Cruze said. “I would not put your home at risk. With HELOCs, the interest rates are sometimes insane.” As for credit cards, the interest rates tend to be even higher and more volatile, and the debt can spiral fast. That’s a dangerous mix when dealing with a large IRS bill.

Instead, Warshaw and Cruze recommended pulling from Marty’s savings and using a personal loan from a bank to cover the remainder.

“Use your savings, then get a personal loan to pay the IRS off as quickly as possible,” Warshaw advised.

“Because I’d rather owe a bank than the IRS at this point,” Cruze added.

IRS debt can lead to aggressive penalties, interest and long wait times when trying to resolve issues — which is why they emphasized handling it quickly, cleanly, and without risking other key assets like retirement accounts or home equity.

“You’re already in the hole,” Cruze said, adding “…be in the hole with a bank.”

The consequences of tapping into your 401(k) early

Marty’s story serves as a reminder to avoid dipping into retirement accounts, especially if you don’t fully understand the tax implications.

As Warshaw concluded, “No more leveraging very important things for debt.”

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In a financial emergency, your 401(k) might look like a tempting source of fast cash, especially when you see a hefty six-figure balance just sitting there. But taking money out of your 401(k) before age 59½ can come with serious consequences that extend far beyond the immediate tax year. You’re typically hit with a 10% early withdrawal penalty and ordinary income tax on the total amount that you’ve withdrawn.

For example, let’s say you withdraw $20,000 from your 401(k) before age 59½:

• $2,000 goes straight to the IRS as a penalty (10%)
• Assuming a 22% tax bracket, you’ll owe another $4,400 in income taxes
• Total cost in fees and taxes: $6,400, or 32% of your withdrawal
• The amount you’ll actually keep: $13,600

Aside from the fees and taxes, there are long-term implications, too.

Lost investment growth: Money withdrawn from your 401(k) isn’t just taxed, it’s no longer growing. A $20,000 withdrawal today could have grown to $80,000 or more over 25 years with compounding returns (assuming an average of 7% annual growth).

Tax time shock: Many people think taxes and penalties are deducted automatically. But if you don’t withhold the right amount when you take the distribution, you may owe thousands when you file, with penalties and interest if you can’t pay on time.

When a 401(k) withdrawal might make sense

There are some exceptions where tapping into your 401(k) early may be the only option:

• Avoiding foreclosure or eviction
• Job loss with no savings or access to credit
• Disability or death (in which case, penalties may be waived)
• Hardship withdrawals, like for terminal illness (may be exempt from the 10% penalty, but you’ll still owe income taxes)

Before dipping into your retirement funds, consider other options:

• Emergency savings
• Personal loans or credit union options
• Home equity loans, if your income supports repayment
• Selling non-retirement investments, like brokerage accounts

Pulling from your 401(k) early can feel like a quick fix, but with taxes, penalties and lost future growth, you could lose 30% to 40% of what you take out, so it should be treated as a last resort rather than an easy solution.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It started with a lithium-ion battery left charging on a workbench.

That single battery caused a raging fire that tore through the Odonnell family’s garage in Spring Hill, Florida.

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“Absolutely it was sitting on his work bench, which is wooden. Probably had some oil and WD-40 and things on it and I think it just went up,” homeowner Cindy Odonnell told WFLA.

The fire erupted without warning, gutting the entire garage of the home in Hernando County. “And there were fire trucks all up and down the road and there was smoke pouring out of the house and water running down the sides, from all sides from everywhere I could see,” she added.

The incident makes clear the risk posed by lithium-ion batteries — and it’s a risk that fire departments across the country are sounding the alarm on.

‘We’re just grateful to walk away’

“Lithium-ion batteries and electric vehicles, that’s a hot topic in the fire services across the country,” said Hernando County Fire Chief Paul Hasenmeier. “There are a large number of fires. Probably right now our leading cause of fires in residential houses is from lithium-ion batteries.”

Hasenmeier confirmed this is the second lithium-ion battery fire within a few weeks in Hernando County alone.

Just two weeks before the Venetia Drive garage blaze, Hernando County Fire Rescue responded to another lithium-ion battery fire, this time in Brookridge, at a mobile home on Moriah Avenue, according to a report by WFLA.

The blaze had started while a golf cart was charging inside a side garage, then quickly spread and engulfed the mobile home. Though firefighters extinguished the fire in about 30 minutes, the property was a total loss. Fortunately, no injuries were reported.

While the Odonnells lost much of their property, they’re counting their blessings.

“We’re just grateful to walk away from it all,” Steve Odonnell said. He and their beloved three-legged squirrel, Flash, escaped unhurt.

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What are lithium-ion batteries, and where are they used?

Lithium-ion batteries are everywhere, from smartphones and laptops to drills, e-bikes, electric scooters and Teslas. They’re small, lightweight, and pack a lot of energy.

These batteries store energy using highly reactive chemical compounds. If damaged, overheated or improperly charged, the internal components can trigger a phenomenon known as “thermal runaway,” where the battery self-heats, ignites and explodes.

As these batteries become cheaper and more widespread, especially in off-brand e-bikes, hoverboards and power tools, fires are becoming a national crisis. Even name-brand batteries can catch fire if left charging too long, stored improperly or paired with incompatible chargers.

Most standard homeowners’ insurance policies cover fire damage. But if the fire was caused by misuse, like charging a battery overnight on a flammable surface or using a non-certified charger, your claim could be denied, delayed or reduced.

If you have a “named perils” policy, only specific causes of damage, like lightning, theft or vandalism, are covered.

If battery fires aren’t listed, you may not qualify for coverage. On the other hand, “open perils” (also called “all-risk”) policies offer broader protection, covering any damage not explicitly excluded. Even these can contain fine print around personal electronics or third-party devices, so always read the fine print.

Don’t forget to think about policy caps. Your coverage may be limited to a percentage of your home’s value, regardless of what the repairs actually cost.

How to protect your home and your wallet

Fire safety officials are warning homeowners to treat lithium-ion batteries with the same caution as gas-powered appliances or open flames. That means not charging batteries unattended, especially overnight, and always using Underwriters Laboratories (UL) certified products.

Keep charging stations away from anything flammable. Avoid leaving batteries plugged in after they’re fully charged. And if a battery ever feels hot, starts to swell, or emits a weird smell, get rid of it properly and immediately. Improper disposal can lead to fires in garbage trucks and recycling centers.

Protect your wallet and check your policy. Make sure you understand the difference between open and named peril coverage, review any exclusions for personal electronics, and ask your agent about endorsements for high-risk items like EV chargers or large-capacity battery packs.

As fires like the ones in Spring Hill and Brookridge make headlines, it’s clear that lithium-ion batteries are a household risk and an insurance wild card. For now, the best protection is a mix of fire-safe habits and a clear, up-to-date insurance policy.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Reimbursement and accountability. That’s what a group of frustrated homeowners in Houston’s Rice Military neighborhood is demanding after an 18-wheeler reportedly knocked down power lines on their street.

Not only did it leave them in the dark for nearly a week but they were also on the hook for footing a nearly $20,000 repair bill. Residents say the truck, operated by a company identified as 6G Transport, struck low-hanging power lines on Detering Street, pulling down a power pole and causing extensive damage that left seven homes without electricity.

“To say that I am outraged would be an understatement,” homeowner Dana Davis told KPRC 2 News. “We were literally and physically in a position of being powerless.”

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The group says they waited days without action from 6G Transport. With no power and Houston temperatures rising, they ended up hiring an electrician to restore electricity at a cost of nearly $20,000, which they say they had no choice but to pay out of pocket.

“With these unseasonably hot temperatures, we couldn’t endure another day without electricity,” Davis said.

More questions than answers

Davis told reporters that she reached out to the company multiple times and spoke directly with the owner, but was left with more questions than answers.

“He wasn’t sure if he was at fault,” she said. “He even suggested that CenterPoint might be responsible because the lines were too low or that the city should have posted signage.”

CenterPoint Energy, in a statement to KPRC 2, confirmed that it had responded to the outage on May 9, but the utility company said it was only responsible for its own infrastructure.

“CenterPoint repaired the damage to its equipment, and once repairs were made to the customer-owned equipment, power was restored,” the statement read. “While we understand the frustration and burden placed on the customers as a result of this incident, CenterPoint is not responsible for damage to customer-owned equipment caused by a third party unrelated to CenterPoint’s operations.”

Davis has since hired attorney Derrell Wright, who told KPRC 2 reporters that 6G Transport’s driver should have been more careful.

“Usually, high-profile vehicles like that should use extreme caution, especially in areas with low-hanging trees and power lines,” Wright said.

Wright confirmed that he’s been in contact with the trucking company’s insurance provider and had given them one week to respond before he would move forward with legal action.

KPRC 2 reported not having received a response to a request for comment from 6G Transport.

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Who should foot the bill?

The Houston homeowners are dealing with more than just power outages and repair costs. While the trucking company may be determined to bear responsibility, the situation is anything but straightforward.

Even if a company is found to be legally liable, or accountable for financial loss, that doesn’t guarantee compensation — which can involve navigating insurance disputes and legal challenges.

Homeowners facing such situations should seek legal advice to make sure they understand their rights and options.

They should also make sure to review their home insurance policy. Standard home insurance typically covers basic items, such as damage to the property and liability. Without additional coverage, homeowners may be left to pay out of pocket for repairs.

This situation highlights the importance of understanding insurance coverage — and the complexity of accountability.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Florida might still be basking in sunshine, but its once-sizzling housing market has simmered down.

The momentum that fueled pricing spikes during the pandemic has taken a sharp turn. For the first time in years, buyers are regaining leverage.

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Sellers, squeezed by skyrocketing insurance premiums, softening demand and growing inventory, are cutting prices, covering closing costs and easing up on contingencies just to seal the deal.

But is this shift a buyer’s paradise? According to real estate experts, the Florida housing story is more complicated than simply buyer-friendly.

Pandemic housing frenzy hits pause

During the COVID-19 era, a wave of remote workers, sun-seeking transplants and looser restrictions turned Florida into ground zero for red-hot real estate. Builders raced to meet demand. Now that demand has cooled.

Then came two hurricanes, a spiraling insurance crisis and record-breaking homeownership costs. Panic-inducing headlines are drawing comparisons to the 2008 crash, but experts urge caution before sounding the alarm.

“It’s nowhere near that,” real estate expert Vincent Arcuri said recently on Full Circle Florida. “Interest rates are at 6.5 %, if you saw interest rates go anywhere in the 5s, you would see the market shift overnight, properties would start to skyrocket again, so it does have a lot to do with how much I’m putting down and how much is my payment? And that’s what really drives the economics of people buying homes.”

Some homeowners who bought at the peak may be feeling the pinch.

“You have people that came from the pandemic that overpaid, now it’s time to pay the fiddler,” Arcuri said. “I think those people that came in and paid $50,000, $100,000 over market, they’re seeing a reduction now in value, plus they overpaid when they bought, which is offsetting some of the equity in those homes.”

So are the issues local or regional? According to Arcuri, Florida’s housing market isn’t uniform.

Inventory is rising in parts of Florida like Tampa Bay, St. Petersburg and Clearwater, but much of that is due to condos, not single-family homes. The surge is being driven by region-specific factors: new milestone inspection rules, skyrocketing HOA fees and soaring insurance premiums — all of which are dragging down condo sales.

While headline numbers may suggest a broad market slowdown, many statistics are skewed by the flood of condo listings. The situation is more regional than statewide.

Recent hurricanes have only added pressure, particularly on older and coastal condo communities, while inland areas and single-family markets remain more resilient.

So, when will the market bounce back? That largely depends on policy. And as Arcuri puts it, “Until we have significant insurance reform.”

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What does it mean for buyers and sellers?

As homes spend more time on the market — especially in places like Tampa Bay and South Florida — buyers are seeing the return of perks not seen since before the pandemic.

But that doesn’t mean today’s buyers have it easy. While home prices may be stabilizing, hidden costs loom:

Florida now has the highest average home insurance premiums in the U.S., with some regions seeing rates above $11,000.

Condo owners in coastal cities are facing 15% plus hikes in HOA fees due to mandatory inspections and storm upgrades.

Mortgage rates remain high, hovering around 6.5%, making monthly payments a real hurdle. Many first-time buyers are already stretched thin by student loans and rising living costs.

Sellers, meanwhile, must adjust to a slower market. Price cuts and concessions are increasingly common, especially for condos facing the brunt of the state’s insurance and structural safety challenges.

So, what should sellers be thinking about? First, price your home realistically. Overpricing means your listing will sit. Consider offering incentives, like covering closing costs, to stand out. Know your costs. High insurance and maintenance fees can make your home harder to sell, so be upfront and ready to discuss those with potential buyers. Most experts agree — this isn’t 2008. Homeowners today typically have equity and more responsible loans. Still, without insurance reform, expect a choppy market.

For now, buyers should do their homework and negotiate hard. Sellers should stay realistic and flexible. Arcuri suggests homeowners just stay put.

“If you’ve got a low interest rate, be patient,” he said. “These markets are cyclical. I’ve seen this happen time and time again. Florida’s fundamentals are still strong. Give it a couple of years, and we’ll be talking about the next housing boom.”

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Police in Miami have accused a 20-year-old woman of luring men into hotel rooms before pepper-spraying and robbing them of their luxury watches.

Esther Maria Torres was arrested in May on two counts of armed robbery in connection with a pair of incidents that occurred earlier in the year, according to Local 10 News.

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On March 26, police say Torres entered a room at the Breakwater Hotel with a tourist, sprayed him and took his Hugo Boss watch and wallet. Four days later, she allegedly pulled a similar trick at the Fontainebleau, this time lifting a Rolex Submariner worth $22,000.

Police bodycam footage obtained by Local 10 News shows the moment Torres was arrested.

Predator and prey

Local 10 News reports that police say Torres was identified via surveillance video and a traffic stop in April that led to the arrest of a man driving a car tied to one of the robberies, and Torres later arrived at the scene.

A judge ordered Torres be held without bond following her arrest.

According to another report by WSVN 7News, investigators had recruited the help of Mitch Novick, owner of the Sherbrooke Hotel, who captured surveillance footage of the suspect.

“We have a predator, and she’s preying on male victims,” Novak told the local broadcaster.

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How can you protect yourself?

Crimes of opportunity happen without prior planning and occur when offenders seize on a chance to act. This can result in robbery if a vulnerable target is identified or valuable items are spotted. Common items stolen in these crimes can include phones, laptops, wallets, designer wear and bicycles.

Tourism hotspots can be paradise for thieves. There’s distraction everywhere and people tend to let their guard down when they’re on vacation. It’s important to stay vigilant, even if you’re there to relax. Here are some tips to protect yourself and your belongings:

• Keep any valuables out of sight or locked away.
• Don’t wear flashy items if you’re alone or out late.
• Watch out for overly friendly strangers.
• If you’re with friends, make sure at least one person is watching everyone’s stuff
• Don’t leave bags or packages visible in your car, even for a short time

If you’re partying in paradise, keep your eyes on more than just the ocean view to keep your belongings in their rightful place.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

South Florida’s flood defenses just took a $150 million hit, and residents are sounding the alarm.

In a move that is shaking storm-vulnerable communities from Miami Shores to Hialeah, the Federal Emergency Management Agency (FEMA) has pulled the plug on a key federal program, abruptly canceling grants from the Building Resilient Infrastructure and Communities (BRIC) initiative that were set to shore up outdated flood infrastructure across the region.

“The BRIC program was yet another example of a wasteful and ineffective FEMA program,” a FEMA spokesperson said in an April statement, blaming “political agendas” for derailing disaster relief under previous leadership.

A FEMA spokesperson said in April that, under Homeland Security Secretary Kristi Noem, the agency is charting a new course: “We are committed to ensuring that Americans in crisis can get the help and resources they need.”

As a result, a staggering $148 million earmarked for South Florida Water Management District (SFWMD) projects is now gone.

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‘This administration couldn’t care less about the safety of our families’

The canceled upgrades were going to fix aging spillways and stormwater systems across three canal basins, all flagged as inadequate by engineers.

Without those upgrades, SFWMD research warns vast stretches of Miami-Dade and Broward counties could face catastrophic flooding and erosion, with rising sea levels and stronger storms making the threat even worse.

Residents in neighborhoods like North Miami, Miami Gardens and Little Haiti told CBS Miami the water’s already rising.

“I’m worried,” said Mary Charlsmith, a North Miami homeowner. “When it rains a lot, there’s a lot of flooding in the street. I have concerns, of course.”

Charlsmith said her home was flooded twice in 2024. “We have to put sandbags in front of the door but that doesn’t help.”

In Miami Shores, Fernando Monsalvo told CBS Miami, “It worries me a lot, the investments that we lost — $148 million… There should be more spent to protect our quality of life. Now, we’re going to suffer a lot.”

His neighbor, Victor Guzman, says, “It’s a need and the government taking them off is not a good thing.”

Rep. Frederica S. Wilson, who represents much of the impacted area, accused the administration of putting politics over public safety.

“This administration couldn’t care less about the safety of our families,” she charged. “Slashing funds for flood mitigation and hurricane prep isn’t just reckless – it’s life or death for South Florida.”

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What if FEMA funds are not replaced?

Here’s what could happen if the $150 million in BRIC grants pulled by FEMA are never replaced:

Higher flood risk: Without critical upgrades like pump stations, raised roads and improved canals, areas like Miami-Dade and Broward become even more vulnerable during storms or high tides, especially with the rising sea-level.

Strained emergency response: As FEMA staff have warned, canceling BRIC cuts down on essential planning, coordination and training, all critical for hurricane and flood readiness.

Without preparations, disasters escalate. New Orleans (post-Katrina) experienced delayed federal relief, infrastructure breakdowns and widespread chaos.

Wider concerns about disaster readiness: Recent historic flooding in Texas which claimed more than 100 lives has amplified national scrutiny over FEMA’s ability to respond quickly and effectively in times of crisis. The agency’s handling of that disaster drew criticism from local leaders and residents, who said help arrived too late and was too limited. Critics worry that cutting mitigation funding in Florida could leave communities even more exposed and underprepared when the next major storm hits.

Escalating costs: Federal research shows every $1 spent on mitigation saves around $6 in future recovery costs.

Municipalities are already investing in sandbags and emergency services, but may have to repay lost grants or self-fund improvements, impacting other services.

Flood insurance fallout: The National Flood Insurance Program (NFIP) remains burdened with debt (~$20 billion) and uses outdated mapping. With rising costs, insurers may hike premiums or drop policies in high-risk zones.

Many homes in flood zones remain uninsured and without mitigation infrastructure. More policies could be dropped or become mandatory, hurting homeowners financially.

Economic disruption: An estimate from the Democratic staff of the Joint Economic Committee pegs the annual cost of flooding in the U.S. at a staggering $179.8 billion to $496 billion in 2023 dollars.

That’s nearly half a trillion dollars in potential damage, disruption and disaster response costs each year, highlighting the massive financial burden of America’s rising flood risk.

Leaders push back and call for restoration of funds

Wilson is now calling for Congress to intervene and restore the canceled BRIC funding, insisting “only Congress has the power of the purse.”

Despite the financial setback, SFWMD says it’s not throwing in the towel just yet.

“No immediate decisions are needed at this time because we are still designing the projects and have not started construction,” the agency said in a statement to CBS News Miami. “We will continue to work closely with our local, state and federal partners to provide flood control in these communities.”

Miami-Dade Mayor Daniella Levine Cava pledged to “monitor federal changes closely” and safeguard the region’s storm-readiness.

“We’re doing our very best to continue to have a very resilient economy and infrastructure,” she said. “So far, so good.”

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.