It should be defunded. There is no actuary process and no assignment of risk vs. payment. If FEMA were worth anything, it would charge states or smaller regions for their insurance based on calculated risk. High risk areas such as those prone to hurricanes, tornados, or wildfires would pay a higher premium than those of us in low-risk areas.
And the deadbeat base of the democRAT party would have to pay their premiums for coverage as well.
Perhaps this should be privatized, like about 80% of the rest of government programs.
And to really be sensible they’d have to refuse coverage to anyone who builds below sea level.