The Trump Administration has proposed further budget reductions for the National Oceanic and Atmospheric Administration (NOAA) for fiscal year 2026. The agency, which operates under the U.S. Commerce Department, experienced a 30 percent funding cut in 2025 and now faces a 14 percent decrease in its climate research budget compared to what Congress had allocated. This development raises concerns about its impact on various sectors, particularly real estate and insurance, which heavily rely on NOAA’s data concerning weather, climate, and environmental risks.
Diana Furchtgott-Roth, director at the Center for Energy, Climate, and Environment at The Heritage Foundation, defends the budget cuts by pointing to the U.S. federal deficit of over $1.5 trillion and a national debt of $37 trillion. She emphasizes the need to delineate federal responsibilities from those that the private sector can undertake.
However, experts in the real estate and insurance sectors highlight the critical role of NOAA’s data in supporting over $10 trillion in goods and services. Alec Bogdanoff, principal scientist at the engineering firm Brizaga, emphasizes how deeply NOAA is woven into economic and development frameworks through its resources, such as weather forecasting, ocean monitoring, and disaster warnings. He warns that the absence of NOAA’s detailed and reliable data could hinder evidence-based property and investment decisions.
LaSalle Investment Management, like many other firms, uses third-party climate risk software grounded in NOAA data. This is crucial in the assessment of climate risk and determining potential hazards for property investments. While companies like First Street use historical data to generate climate risk insights, they express concern about the potential loss of NOAA data going forward.
NOAA’s historical work, maintained by bodies like the National Centers for Environmental Information, is pivotal for assessing and addressing real estate and infrastructure resilience. From measuring elevations to informing floodplain maps, NOAA’s data ensures that building and infrastructure projects are well-equipped to face current and future environmental challenges.
For real estate developers, especially those focused on iconic coastal projects, NOAA’s data is invaluable. Properties with coastal views command significant premiums, with Florida’s waterfronts fetching up to 119 percent more. Developers like Jean Francois Roy of OceanLand acknowledge the responsibility that comes with coastal development, emphasizing the need for environmental awareness and long-term resilience.
The potential elimination of crucial NOAA data programs, like the Atlas 15 precipitation estimate, presents another serious concern. This could affect flood risk assessments and preparedness, particularly as rainfall intensifies and flooding becomes more frequent.
Insurance companies are also key users of NOAA’s data, relying on it to assess historic natural disaster trends for accurate underwriting and setting of insurance rates. Without dependable data, insurance markets would face higher uncertainty and costs, affecting both insurers and their clients.
In summary, NOAA’s contributions are deeply embedded in the fabric of industries that depend on accurate environmental data. The proposed budget cuts could significantly impact these sectors, making it imperative for stakeholders to assess the potential risks and engage in advocacy for the essential services NOAA provides.