Hurricane Reserves — Houston FY2027 Budget

The key facts

$77M

Cushion above policy minimum entering hurricane season (June 2026)

$567M → $276M

Fund balance from FY24 peak to FY26 projection — a 51% reduction in two years

8–9%

Houston's combined reserve policy. Dallas: 19–20%. GFOA recommends 16.7%.

6–24 mo

How long FEMA reimbursement takes. Houston has to front 100% of the cash.

Reserves are not abstract — they are the cash that pays for cleanup, emergency response, and rebuilding while FEMA reimbursement is pending.
After Hurricane Harvey, the city deliberately rebuilt the fund balance to $567M specifically so it could front cash for the next event.
That deliberate cushion was spent down by half in two years — to plug operating gaps, not to respond to a disaster.
If a Harvey-class event hits in 2026, Houston goes below its own 7.5% reserve floor for the first time since post-Harvey recovery.

“

The fund balance was specifically rebuilt after Harvey to front cash for the next event. From $567M to $276M is a 51% reduction in two years.

— Controller Hollins, Weathering the Storm hurricane preparedness report (September 2025)

Ask for the rebuild plan

What is the FY27 plan to restore hurricane reserves to GFOA-recommended levels — and what is the timeline?

Track June 1 forward

Atlantic hurricane season runs June 1 through November 30. The fund balance number to watch is the City's monthly financial report each month.

Make a personal emergency plan

Treat the city's thinner reserves as one more reason to have your own family hurricane plan: documents, water, medications, evacuation route.