FOR IMMEDIATE RELEASE
June 7, 2023
Contact: Ike Obi, Ike@taxpayer.net

Washington, DC – Taxpayers for Common Sense, a nonpartisan budget watchdog organization, has published a comprehensive report shedding light on the substantial rise in federal government spending over the past decade as a direct consequence of the effects of climate change. The report, titled “Paying the Price: Taxpayers Footing the Bill for Increasing Costs of Climate Change,” underscores the financial burden imposed on taxpayers due to the escalating frequency and severity of climate-related events, particularly intense and destructive storms.

The report reveals that over the last five years federal taxpayers spent more on disasters than the combined Fiscal Year 2022 budgets of the Departments of Education, Energy, Homeland Security, Justice, State, Transportation and the Environmental Protection Agency.

“The impacts of climate change are no longer a distant concern but a pressing fiscal reality taking its toll on our federal pocketbook. Our report unequivocally demonstrates that we are all paying a rapidly growing price from climate change,” said Steve Ellis, president of Taxpayers for Common Sense. “Average annual climate-related disaster costs already exceed most federal agency budgets. Imagine that – a Secretary of Disaster.”

According to the findings of the report, taxpayers have shouldered an average annual cost of approximately $62 billion over the last five years, solely dedicated to various programs aimed at combating and mitigating the impacts of climate change. That is an increase of $16 billion or 35 percent increase over the previous five-year average. While this is a staggering figure that reflects the urgency and scale of the challenge that our nation faces in addressing climate-related crises, it is surely a large undercount because the federal government, particularly the Department of Defense, does not account for all of its climate related costs.

Last year, E2 released a report that examined the overall costs of disasters to the U.S. economy – beyond federal spending – and found a similar rapid increase in costs.

“Climate change is now a serious economic issue,” said Bob Keefe, executive director of E2. “Rising costs from extreme weather events made worse and more frequent by climate change are an escalating burden on American businesses, our infrastructure, and our bank accounts – no matter where we live, what we do or how we vote.”

Taxpayers for Common Sense’s new report further breaks down the increased spending across key areas directly impacted by climate change, including:

• National Flood Insurance Program: The study reveals that in response to escalating flooding events, taxpayers have witnessed a significant rise in NFIP borrowing from the Treasury, with an estimated increase of $19 billion over the past decade.
• Crop Insurance: The report highlights a marked increase in federal spending on crop insurance programs due to the growing risks posed by extreme weather patterns. Taxpayers have witnessed a surge in expenditure, totaling approximately $79 billion over the last ten years.
• Infrastructure: The impact of climate change on infrastructure has been substantial, leading to increased expenditure on repairs and resilience measures. The report reveals a noteworthy rise in federal spending on infrastructure, amounting to $57 billion over the past decade.
• Wildfire Suppression: As wildfires become more frequent and devastating, the federal government has been forced to allocate significant resources towards wildfire suppression efforts. Taxpayers have contributed approximately $45 billion to combat these escalating fire risks over the last ten years.
• National Security: Climate change has emerged as a significant national security concern, necessitating increased spending on related defense and preparedness measures. The report highlights an estimated increase of at least $10 billion in federal expenditure over the past decade to address climate-related security challenges.

“The costs are growing. In the past five years, taxpayers spent on average 35 percent more on climate-related disaster costs than the previous five. Every taxpayer is getting hit in the wallet from climate change and it is getting worse,” concluded Ellis.

Taxpayers for Common Sense is a nonpartisan organization dedicated to promoting responsible fiscal policy and advocating for transparency in government spending. For more information on the report or to access the full findings, please visit www.taxpayer.net.

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