Private companies fill gaps in climate disaster recovery as federal services decline

As climate disasters become more frequent and destructive, a troubling trend is emerging: disaster recovery is increasingly becoming a service available only to those who can afford it. The 2025 Oscar gift bags included a subscription to Bright Harbor, a premium disaster recovery service that helps clients navigate FEMA bureaucracy, secure loans, and rebuild after catastrophes like the Los Angeles wildfires. While these services can cost hundreds of dollars monthly, they highlight a growing gap in public disaster response capabilities.

This privatization of disaster recovery follows a pattern established after Hurricane Katrina in 2005, when conservative think tanks recommended replacing public services with private alternatives. In New Orleans, public housing was demolished and replaced with private developments, while the entire school system was converted to charter schools. Many residents were permanently displaced, and critics argue the city still hasn’t fully recovered nearly two decades later.

Puerto Rico offers another stark example of “disaster capitalism” following Hurricane Maria in 2017. The territory’s bankrupt electrical utility was handed to private company LUMA, which promised reliable power and renewable energy integration. Instead, blackouts remain routine, electricity bills have doubled, and fossil fuels still generate 93% of the island’s power. Residents now rely heavily on polluting generators while paying premium prices for unreliable service.

The trend raises fundamental questions about which services should remain public goods, especially as climate change intensifies. While private companies can mobilize quickly, experts warn that market-based solutions often leave vulnerable communities behind and lack the transparency and accountability of public services.