The Department of Homeland Security has terminated numerous contracts with the Federal Emergency Management Agency (FEMA) after uncovering billions of dollars in waste and fraudulent activities.
According to Government Efficiency (DOGE), FEMA has been paying for inflated contracts, duplicate services, and programs deemed unnecessary or fraudulent. In light of these findings, DHS is looking to cancel contracts and enhance oversight. Daily callers reviewed a selection of contracts flagged by DOGE.
A FEMA representative expressed that anyone reviewing FEMA’s spending control policies would find them alarming. He noted that Secretary Kristi Noem is effectively guiding the agency towards better spending practices and financial responsibility.
For instance, nearly $10.7 million was directed to the Ready Campaign for media materials related to public safety announcements. Another $3.3 million funded an internal marketing initiative aimed at surveying FEMA employees annually.
The agency also allocated $1.6 million for basic workshop organization, covering logistics like agenda creation and transportation. Additionally, $1.27 million went to conference center services to assist with room setups and maintenance.
Some contracts included $645,000 for planning brief meetings and over $594,000 for HR document shredding services. Furthermore, there was a $500,000 spend on a social media recruitment campaign, along with $150,000 for a diversity and coaching program.
Latosha G., who participated in the recruitment program, shared her experience of applying for a data management position and getting called for an interview the very next day.
Various oversight entities, including the Government Accountability Office (GAO) and DHS inspectors, have long urged FEMA to improve financial management and streamline disaster aid processes. The GAO has noted ongoing problems with slow approval of reports, inadequate surveillance, and flawed procurement practices leading to substantial waste.
In response, the Trump administration initiated reforms aimed at boosting accountability and efficiency, such as ensuring disaster survivors demonstrate progress towards permanent housing during recertification meetings. Yet, it seems that the higher-ups at FEMA were resistant to more significant reforms. Cameron Hamilton, a senior staff member, defended the agency’s current practices during a hearing but was replaced shortly afterward.
FEMA’s history shows that issues extend beyond mere inflated contracts. A GAO report from 2022 revealed that the agency met only 14% of its project support targets over a significant period, often taking more than a year to award contracts.
Following Hurricane Maria and Irma, FEMA was reported to have tracked nearly 40% of supply transport to Puerto Rico, amounting to about $257 million, with recovery funds stagnant for years. Additionally, FEMA handed over a $156 million meal contract to a company that managed to deliver only 50,000 meals out of the promised 30 million.
Moreover, wage support programs during the pandemic saw inappropriate payments of $3.7 billion, and separate audits have flagged billions in questionable expenditures. Even FEMA’s National Flood Insurance Program is burdened with a debt of $20.5 billion, despite repeated warnings from the GAO about its unsustainable financial structure.
