Researching funding of government programs makes me grumpier than anything else. HOWEVER, it seems that FEMA is primarily funded through the DHS’s general apropriations (in other words, tax money). The NFIP (the flood insurance) is managed by FEMA, but you’re purchasing insurance through a regular insurance company. NFIP seems to be more of a sink than a source of money, as they’re allocated $3B for that in 2010.