Climate: The racial disparities of flood buyouts
Black homeowners are paid less than white homeowners under a FEMA program, new research finds.
Climate Forward
September 17, 2026

Climate Forward is coming to New York City

Next week will be busy in New York. The United Nations General Assembly draws hundreds of world leaders to Manhattan. Climate Week hosts dozens of events across the city. And on Wednesday, Sept. 23, The Times will host our annual Climate Forward live event.

This year will feature an interview with Energy Secretary Chris Wright at a moment of soaring energy costs. We’ll speak about the data center boom with the activist Erin Brockovich; Josh Parker, the head of sustainability at Nvidia; and Gov. Abigail Spanberger of Virginia. And we’ll hear from the chief executives of solar, nuclear, geothermal and deep sea mining companies. Register for the free livestream here.

An aerial view of a flooded neighborhood.
Flooding in a Houston neighborhood following Hurricane Harvey in 2017. David J. Phillip/Associated Press

The racial disparities of flood buyouts

After a flood, homeowners are often faced with a difficult choice: Rebuild and risk a repeat disaster or move away. The federal government’s efforts to nudge them toward the second option have resulted in more than 43,000 buyouts in recent decades for damaged and at-risk homes, which are destroyed or moved.

But new research has unearthed a troubling racial gap in what homeowners are paid for their properties, which are sold through the Federal Emergency Management Agency’s Hazard Mitigation Grant Program, an initiative that was started in 1988 and is intended to help with long-term disaster recovery and prevent future losses.

From 1989 to 2017, buyout compensation for Black homeowners was at least 6 percent lower than it was for white households, according to a new working paper published by the National Bureau of Economic Research that has not yet undergone peer review.

That difference may be part of the reason Black homeowners who received a FEMA buyout tended to move to homes in worse neighborhoods with as much or more flood risk as their previous homes, whereas white homeowners tended to move into better neighborhoods with less flood risk, the paper found.

“There’s nothing in the flood buyout program that’s explicitly racist like there was in government programs in the 1930s and 40s,” said Christopher Timmins, economics professor at the Wisconsin School of Business who worked on the study. “But that doesn’t mean that the way the systems operate don’t lead to those kinds of outcomes.”

FEMA did not immediately respond to a request for comment on the study.

Unequal payouts

The FEMA buyout process starts with an independent appraiser who calculates the fair market value of a home. If the home has been damaged in a recent flood, they rely on the market value before the disaster, which determines the buyout offer to the homeowner.

Then, the homeowner has three choices: Accept the offer, appeal the price, or refuse to move. It’s not clear which parts of this process contribute to the compensation gap, said Lala Ma, an associate professor of economics at the University of Kentucky who also worked on the paper.

Some of the problem could lie in the broader housing market. For example, researchers have found widespread racial bias in home appraisals.

But Dr. Ma said bias wouldn’t explain the trend in full.

Another possible explanation is the appeal process. It could be that white homeowners tend to appeal their appraisals more often, and that they successfully petition for higher compensation. The researchers did not have data about which homeowners appealed their offers.

Some homeowners may also feel like they can’t say no to an offer, even if it’s for a lower price than they’d like. A 2012 survey of four cities with buyout programs found that a third of the homeowners felt like they had been forced to participate. Previous research has found that FEMA “offers white disaster victims more than people of color, even when the amount of damage is the same,” my colleague Chris Flavelle has reported.

Policymakers have considered expanding buyout programs and purchasing homes before disaster hits. If they don’t fix the payment gap, “these unequal impacts are going to be magnified,” Dr. Ma said.

There are other possibilities that could explain some of the gap the researchers found. Most of the homeowners in the data set were white, and the sample size of Black homeowners was relatively small. Also, in some cases, insurance payouts and other disaster aid are subtracted from buyout purchase offers, and these subtractions are not reported in the figures the researchers used.

After the buyout

The researchers were able to follow the movements of some of the buyout participants as they settled into new neighborhoods. This tracking revealed another divergence.

White sellers tended to move to better neighborhoods with lower flood risks than their prior homes, but Black sellers tended to move to worse neighborhoods that had higher flood risk. (For the purposes of the study, neighborhoods were considered to be “better” or “worse” based on factors like poverty rates, the percentage of renters and single parents, and environmental risk factors like pollution.)

These outcomes seemed to flow from the payment gaps: The lower a Black homeowner’s payment relative to the predicted fair market value of their property, the worse their new neighborhood.

The paper will undergo peer review before it can be published in a journal, a process that could recast or soften some of the findings.

Climate relocation is still a relatively new phenomenon, and policymakers are trying to understand what works and what doesn’t. Still, the research suggests that buyout participants could use more support during the relocation process, Dr. Timmins said.

“What we need to do is think harder about what happens when you give people a pile of money and say, go find a better place to live,” he added.

Get a free month in the Times app

If you’re not a Times subscriber yet, we have some news: You can now explore all of our coverage free for your first month in The New York Times app. That’s a month to experience The Times like a subscriber and click through all the links in this newsletter without hitting paywalls.

You’ll also have access to all of our climate and environment coverage, plus recipes, trusted product reviews and in-depth sports coverage. Download the app now to explore free for your first month — no credit card required.

And if you already subscribe, thank you.

A whale tail vertical above the surface as the animal heads into a dive. The sea is calm except for some churn around the whale and the sun is low on the horizon.
A North Atlantic right whale off Cape Cod, Mass., in 2023.  Robert F. Bukaty/Associated Press, photographed under NOAA permit # 21371

CONSERVATION

Trump administration moves to gut a core endangered species protection

In what would be a seismic shift, the Trump administration is quietly moving to strip a core protection of the Endangered Species Act, according to an internal memo obtained by The New York Times.

Under a new interpretation of the law’s language outlined in the memo, the accidental killing or injury of an animal would no longer be considered illegal; only actions specifically intending to target an animal would.

The change would be transformative because, in the United States, the killing of endangered animals almost always happens incidentally, in the course of economic activity. Until now, industries and individuals could be held accountable for those foreseeable deaths and, as a result, they have been incentivized to avoid them. — Catrin Einhorn

Read the full article.

ONE LAST THING

An aerial view of blue tropical water.
Installation of structures to encourage the regrowth of beaches in waters off Kaafu Atoll in the Maldives.  Coastal Assembly

Rising seas are gobbling up beaches around the world. A.I. might restore them.

In the Maldives, a low-lying archipelago in the Indian Ocean, researchers are doing something remarkable: They’re growing beaches.

The project, born in a lab at the Massachusetts Institute of Technology a decade ago, uses artificial intelligence, satellite and ocean-current data to predict coastal erosion patterns and create submerged structures that harness currents to coax the beach back.

The early results from the company, Coastal Assembly, have been promising. “I have seen it,” said Mohamed Nasheed, who served as president of the Maldives from 2008 to 2012. “It actually works.” — Quinn Glabicki

Read the full article.

MORE NYT CLIMATE NEWS

Article Image

Alejandro Cegarra for The New York Times

Locals Call It the World’s Largest Cesspool, and Blame It for Surging Cancer

For decades, the Mexican authorities have sacrificed a rural valley to flush away the capital’s waste and power the economy. Now, local communities are paying for that decision — often with peoples’ lives.

By Emiliano Rodríguez Mega and Alejandro Cegarra

A man wearing a cowboy hat and holding a walking stick stands among cactuses in a desert.

To a Binational Tribe, Trump’s Border Wall Feels Like Betrayal

An escalating confrontation on Native land southwest of Tucson threatens to upend decades of uneasy cooperation between the Tohono O’odham Nation and the United States.

By Reis Thebault and Anna Watts

A cargo ship laden with containers sits in the water next to a large blue metal crane.

Maggie Shannon for The New York Times

House Votes to Block California’s Clean Ship Rules

The move continues Republican efforts to undercut the state’s climate rules, but it’s unclear whether the Senate will follow suit.

By Maxine Joselow

A muddy river snakes through a valley with trees and greenery on the mountains on either side. Mud stains the banks of the river well above the water line.

Atul Loke for The New York Times

Warming Played ‘Very Strong’ Role in Himalayan Floods, Study Finds

Rising temperatures contributed to the disaster by destabilizing the permafrost and ice around the collapsed rock, scientists concluded.

By Raymond Zhong

Harold Hamm looks off to the side wearing a blue suit jacket and white shirt with a small microphone next to his face.

Kaylee Greenlee/Reuters

Trump Ally Harold Hamm Strikes Venezuela Oil Deal

Mr. Hamm’s company, Continental Resources, has signed a preliminary deal with Venezuela’s state-owned oil company to develop and produce oil.

By Brad Plumer and Rebecca F. Elliott

More climate news from around the web:

  • Because of the war in Iran’s effects on oil supplies, global fossil fuel emissions are set to fall by around 0.5 percent this year, according to a new analysis by Carbon Brief.
  • A new poll by The Associated Press finds that 53 percent of Americans are extremely or very concerned about the environmental effects of artificial intelligence.

Read past editions of the newsletter here.

If you’re enjoying what you’re reading, please consider recommending it to others. They can sign up here.

Follow The New York Times on Instagram, Threads, Facebook and TikTok at @nytimes.

Reach us at climateforward@nytimes.com. We read every message, and reply to many!

Illustration of wavy, multicolored bands in shades of red, orange, yellow and blue.

If you received this newsletter from someone else, subscribe here.

Need help? Review our newsletter help page or contact us for assistance.

You received this email because you signed up for Climate Forward from The New York Times.

To stop receiving Climate Forward, unsubscribe. To opt out of other promotional emails from The Times, including those regarding The Athletic, manage your email settings.

Subscribe to The Times