A storm of controversy brews as conflicting reports emerge about FEMA's financial readiness for disaster response.
According to Fox Business, Homeland Security Secretary Alejandro Mayorkas has claimed that FEMA is out of disaster funds, even though a DHS Inspector General report suggests that the agency is sitting on billions in untapped resources.
This discrepancy has sparked intense debate about FEMA's financial management and its ability to respond to impending natural disasters. The timing of this controversy could not be more critical, with Hurricane Milton escalating to a Category 5 storm and massive evacuations underway in Florida.
On October 2, Secretary Mayorkas made a stark announcement, stating that FEMA lacks the necessary funds to manage the current hurricane season and respond to imminent threats. His statement has raised alarm bells among lawmakers and the public alike.
However, the Homeland Security Inspector General's report paints a different picture. According to the August 2024 report, FEMA has approximately $73 billion in unliquidated funds from 847 open disaster declarations. More specifically, the report identifies $8.3 billion in unliquidated obligations for disasters declared in 2012 or earlier.
This apparent contradiction has led to accusations that FEMA has become a "slush fund" that can be manipulated at will by the agency and the Biden-Harris administration. Critics argue that these frozen funds could be reallocated to address current and future disaster relief efforts.
The complexity of FEMA's funding mechanisms appears to be at the heart of this issue. Jeremy Portnoy from the watchdog group Open the Books explains that FEMA's grant money is locked into specific "periods of performance," making it difficult to reallocate funds quickly.
The Inspector General's report highlights that FEMA has been extending these deadlines by up to 16 years for $7 billion worth of grants, sometimes without proper explanation. This practice has led to situations where funds remain unused for extended periods, such as the $4.5 billion still earmarked for Super Storm Sandy relief 12 years after the event.
These extensions, based on what the report calls "subjective" criteria, increase the potential risk of fraud, waste, and abuse within the agency's financial management system.
The revelation of this financial discrepancy has intensified criticism of the Biden-Harris administration's disaster response capabilities. Congressional Republicans are particularly vocal in their disapproval, pointing to FEMA's allocation of $1.1 billion for sheltering and aiding illegal aliens as evidence of misplaced priorities.
Representative Nancy Mace has taken action by introducing a bill to end FEMA's shelter program for illegal migrants. This move underscores the growing concern that FEMA's resources are being diverted from its primary mission of disaster relief to address border security issues.
FEMA's financial struggles come at a time when the agency faces an unprecedented number of billion-dollar disasters. In 2023, the U.S. experienced 28 storms that caused more than $1 billion in damage each, with 19 such events already recorded in 2024. This increasing frequency of severe weather events has strained FEMA's resources. Since 2001, the agency has nearly exhausted its Disaster Relief Fund nine times, highlighting the need for a more sustainable and flexible funding model.
The controversy surrounding FEMA's disaster funds highlights the complex challenges facing the agency in an era of increasing natural disasters. Secretary Mayorkas' claim of depleted funds contrasts sharply with the Inspector General's report of billions in untapped resources. This discrepancy raises serious questions about FEMA's financial management and its ability to respond effectively to current and future crises.
