"The 1994 Northridge (CA) earthquake caused as much as $26 billion (in 2005 dollars) in damage and was one of the costliest natural disasters to strike the United States. The Federal Emergency Management Agency has estimated that earthquakes cost the United States over $5 billion per year. A hypothetical scenario for a magnitude 7.8 earthquake in southern California estimated a possibility of 1,800 fatalities and over $200 billion in economic losses. […]. An ongoing issue for Congress is whether the federally supported programs aimed at reducing U.S. vulnerability to earthquakes are an adequate response to the earthquake hazard. Under the National Earthquake Hazards Reduction Program (NEHRP), four federal agencies have responsibility for long-term earthquake risk reduction: the U.S. Geological Survey (USGS), the National Science Foundation (NSF), the Federal Emergency Management Agency (FEMA), and the National Institute of Standards and Technology (NIST). […]. would exceed the total cumulative amounts actually appropriated between FY2005 and FY2009. What effect funding at the levels enacted through FY2009 under NEHRP has had on the U.S. capability to detect earthquakes and minimize losses after an earthquake occurs is not clear. It is also difficult to predict precisely how NEHRP reauthorized under H.R. 3820 would achieve a major goal of the bill: to reduce the loss of life and damage to communities and infrastructure through increasing the adoption of hazard mitigation measures. A perennial issue for Congress is whether activities under NEHRP can reduce the potential for catastrophic loss in the next giant earthquake to strike the United States."
CRS Report for Congress, RL33861