A discrepancy between official statements and government reports has sparked a heated debate over disaster relief funding.
According to Fox Business, Homeland Security Secretary Alejandro Mayorkas is facing criticism for claiming FEMA has exhausted its disaster funds.
A recent report from the Department of Homeland Security's Inspector General reveals that FEMA is holding billions in unspent funds, contradicting previous claims. This issue arises as Hurricane Milton, a Category 5 storm, threatens Florida, which is still recovering from the destruction of Hurricane Helene.
On October 2, Secretary Mayorkas made a statement that has since become the center of this controversy. He claimed that FEMA lacks the necessary funds to manage the current hurricane season and address imminent threats. This assertion has raised eyebrows, especially in light of the Inspector General's findings.
The August 2024 report from the DHS Office of Inspector General paints a different picture. It reveals that as of October 2022, FEMA had 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 discrepancy has led to accusations that FEMA has become a "slush fund" that can be used at the discretion of the agency and the Biden-Harris administration. Critics argue that this situation demonstrates a lack of proper fund management and accountability.
Despite the apparent abundance of funds, analysts point out that FEMA faces bureaucratic hurdles in accessing these resources. The agency cannot easily tap into unspent appropriations from past crises, resulting in a paradoxical situation where billions remain frozen while current disasters go underfunded.
This issue is particularly poignant given the aftermath of Hurricane Helene. With 600 people still reported missing and at least 220 confirmed deaths, the need for immediate and substantial disaster relief is clear. Entire communities have been devastated, drawing comparisons to the catastrophic impact of Hurricane Katrina in 2005.
The Inspector General's report suggests that more than $7 billion in unliquidated funds could potentially be returned to the Disaster Relief Fund. However, the process for reallocating these funds remains unclear and seemingly bureaucratically complex.
FEMA's practices regarding fund management have come under intense scrutiny. The agency has been criticized for extending deadlines for grant spending by up to 16 years, sometimes without clear justification. This practice has led to situations like the $4.5 billion in unused funds still allocated for Super Storm Sandy relief, 12 years after the event.
The Inspector General's report highlights concerns about FEMA's decision-making process for extending these deadlines. It notes that officials often use "subjective" criteria, potentially increasing the risk of fraud, waste, and abuse the longer a program remains open.
These revelations come at a time when FEMA is already facing challenges. The agency has responded to a record number of billion-dollar storms in recent years, with 28 such events in the previous year alone and 19 so far in 2024. Since 2001, FEMA has reportedly nearly depleted its Disaster Relief Fund nine times.
The discrepancy between Secretary Mayorkas' statement about FEMA's lack of funds and the Inspector General's report revealing billions in unspent allocations has ignited a fierce debate. This controversy highlights the challenges in managing and accessing disaster relief funds, especially in the face of increasing natural disasters. The situation underscores the need for greater transparency and efficiency in disaster fund management to ensure timely and effective responses to crises like Hurricane Helene and the approaching Hurricane Milton.
