U.S. News

If FEMA is "phased out” as President Trump plans, states that don't have other resources to draw on will be scrambling to fill gaps. Given the massive costs involved in repairing or replacing infrastructure, states will be highly likely to continue to rebuild exactly what's been knocked down, according to Gaughan, rather than investing in structures built to withstand future climate effects—like roads on higher ground, or more substantial culverts, or new communities away from floodplains.

What's a local government looking for abundant, inexpensive capital supposed to do? Well, federal government assistance aimed at climate adaptation may be a thing of the past, but the municipal bond market (which includes state bonds, despite the name) remains highly attractive to investors—thanks to an apparent Congressional inclination to keep the exemption of bond interest from federal taxation in place. Record-breaking numbers of muni bonds are being issued these days. And Gaughan wants everyone to consider what state-level public finance agencies can do for local governments when it comes to adapting to the ferocious physical effects of climate change.

"Bond banks have the back of local governments as they face ongoing climate challenges," Gaughan says. "At the end of the day, we want our cities, towns, and villages to be successful," he adds. "So that's why we're so vested in trying to figure this thing out." He's implying that relying on individual towns to figure out adaptation, each on their own, won't work.