The Federal Government will prepare a report for each state outlining it’s weakness in disaster preparedness. If a disaster strikes and the state has not remedied it’s outstanding issues, no Fema money will be issued.
So for example, because California has not allowed the water to flow through the state, cleaned up their forest brush and filled up their reservoirs, they get no FEMA money.
Money could be made available to these states, but as a loan not as aid.