In communities across the country, the weather is not just extreme, but relentless. Floods are getting stronger and lasting longer; wildfires are bigger and harder to control; and hurricanes are intensifying rapidly.

The country has made progress in raising awareness and developing strategies for climate adaptation, but financing resilience is still a major challenge. Traditional public finance models and federal grants are falling short, creating unrealistic expectations and discouraging proactive investment.

This report calls for a shift toward more innovative, locally driven financial approaches that emphasize shared risk, shared value and scalable solutions – many of which are already being piloted in states like Illinois, Rhode Island, Michigan and Oklahoma.

According to Brookings, 80% of America’s public infrastructure spending on roads, bridges, stormwater systems and other physical structures is still paid for by state and local government rather than the federal government. Successful climate adaptation at the local level can lead to reduced property damage, lower insurance premiums, more stable tax bases, business continuity and better public health.