Homeland Security Secretary Alejandro Mayorkas is facing renewed criticism after claiming that FEMA is running out of disaster relief funds, just as a report from the Department of Homeland Security’s Inspector General revealed that FEMA is sitting on over $8.3 billion in unspent funds.
This comes at a time when Hurricane Milton, now a Category 5 storm, is barreling toward Florida, prompting massive evacuations, as the state continues to recover from the devastation caused by Hurricane Helene.
On October 2, Mayorkas stated, “We are expecting another hurricane hitting.
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We do not have the funds. FEMA does not have the funds to make it through the season and what is imminent.”
Mayorkas 3 months ago: FEMA is “tremendously prepared” for hurricane season
Mayorkas today: FEMA is out of money and can’t make it through hurricane season. “We do not have the funds”
Look at this. 3 months apart: pic.twitter.com/aX3o0NGihb
— Gregg Re (@gregg_re) October 4, 2024
However, this claim has been met with backlash following the release of the DHS Inspector General’s report, which revealed that FEMA has significant unspent funds that could have been allocated to current disaster relief efforts.
FEMA is facing increasing scrutiny as Hurricane Milton threatens Florida, where many areas are still grappling with the aftermath of Hurricane Helene.
Helene, which struck the Southeast with catastrophic force, left over 220 dead and around 600 still missing.
Entire towns were wiped off the map, making it the most devastating hurricane to hit the U.S. since Hurricane Katrina in 2005.
The controversy centers around the fact that while FEMA claims to be running out of funds, the Inspector General’s report found that approximately $8.3 billion in unliquidated funds—money allocated for past disasters—remains untapped.
The report noted that some of these funds date back to disasters as far back as 2012, with significant amounts still frozen.
Specifically, $4.5 billion allocated for Superstorm Sandy in 2012 remains unspent, with FEMA extending deadlines on spending these funds without clear justification.
In the report, the Inspector General expressed concern that the agency’s practice of extending these spending deadlines without clear reasoning could increase the potential for “fraud, waste, and abuse.”
The report highlighted that FEMA had extended the deadlines for over $7 billion worth of grants by up to 16 years, often without providing detailed explanations.
These findings have raised questions about FEMA’s efficiency and its ability to respond to ongoing and future disasters.
Budget analysts have voiced concerns that FEMA’s management of disaster relief funds has turned the agency into what some have described as a “slush fund,” allowing the Biden-Harris administration to redirect funds without clear oversight.
Jeremy Portnoy, from the watchdog group Open the Books, explained that FEMA locks in grant money during a “period of performance” and is required to use the funds within that time frame.
However, the Inspector General’s report shows that FEMA has repeatedly extended these periods, sometimes for more than a decade.
Republican lawmakers are seizing on the issue, criticizing the Biden-Harris administration’s handling of disaster relief.
In addition to FEMA’s unspent disaster funds, the agency has come under fire for allocating over $1.1 billion to provide shelter and aid to illegal migrants, a move that many Republicans argue diverts resources from U.S. citizens in need.
Rep. Nancy Mace (R-S.C.) introduced a bill to end FEMA’s shelter program for illegal migrants, sparking further debate over the administration’s priorities.
The Inspector General’s report also raises the question of whether FEMA’s involvement in the border crisis is diverting attention and resources from its primary mission of disaster relief.
Critics argue that by allocating significant funds to address the border crisis, the Biden-Harris administration is signaling that it views the border situation as a disaster in itself—though not one of natural origin.
As Hurricane Milton approaches and the Southeast struggles to recover from Hurricane Helene, the controversy surrounding FEMA’s unspent funds and the Biden-Harris administration’s disaster response policies will likely continue to grow.
Congressional Republicans are expected to keep pressing the administration on its handling of disaster relief, particularly in light of the ongoing scrutiny over FEMA’s financial management and priorities.
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