An alarming report from the U.S. Department of Homeland Security’s Office of the Inspector General (OIG) reveals that FEMA has over $7 billion in unliquidated funds that could potentially be used for disaster relief.
Despite these funds, Biden’s Department of Homeland Security (DHS) Secretary Alejandro Mayorkas recently claimed that FEMA doesn’t have enough money to manage the ongoing hurricane season, leaving many Americans wondering where the resources are.
The OIG report, published in August, shed light on FEMA’s lack of oversight and management of disaster funds, which has resulted in billions of dollars going unused. The report stated that “Inadequate Oversight” had led to significant “Delays in Closing Out Declared Disasters.”
Specifically, FEMA extended 41 program periods of performance or closeout liquidation periods without proper documentation or justification, as required by law. This failure to properly manage resources has left over $7 billion in unliquidated funds, which could potentially be reallocated to the Disaster Relief Fund (DRF) for immediate use in helping disaster victims.
The timing of this report is critical, as parts of the southern U.S. have been hit hard by hurricanes, causing widespread devastation reminiscent of Hurricane Katrina. Yet despite the scale of the damage, aid to victims has been shockingly insufficient. Many hurricane victims have been told they are eligible for only $750 in FEMA aid—a paltry sum considering the destruction they are facing. Meanwhile, Mayorkas’ claims that FEMA is running out of money have raised questions, especially when the OIG report points to billions sitting unused.
This situation has led some critics to speculate whether FEMA’s failure to deploy these resources is rooted in mismanagement or something more politically motivated. Some argue that the Biden administration may be neglecting the hardest-hit areas, which happen to be largely Republican states. The administration’s critics also point to the federal government’s willingness to allocate billions for foreign aid, even as American citizens suffer in the aftermath of natural disasters.
For example, on October 1, while Hurricane Helene was ravaging towns in the U.S., USAID announced $336 million in humanitarian aid for the Gaza Strip and the West Bank. These areas are largely controlled by Hamas, a recognized terrorist organization, and many of the residents support jihad against Israel. On October 2, another $237 million was pledged for “winterization preparedness” in Ukraine.
Then, on October 4, the U.S. State Department announced $157 million for Lebanon, a country heavily influenced by Hezbollah, another terrorist group. All this foreign aid was committed while hurricane victims in the U.S. were left with minimal federal support and body bags piled up in the South.
Critics argue that the Biden administration’s priorities are misaligned, funneling taxpayer dollars to foreign interests while neglecting Americans in need. FEMA’s inability to manage its funds effectively is just one example of what some see as the government’s failure to prioritize its own citizens.
Constant delays in closing out past disaster declarations, according to the OIG report, are a major factor contributing to the accumulation of unliquidated funds. FEMA has kept 26 programs open beyond their approved periods of performance, leaving nearly $9.4 million in limbo, which only adds to the confusion about why available money isn’t being put to use.
The core issue, as highlighted by the OIG, is FEMA’s failure to provide detailed documentation for extending performance periods for these programs. The report suggests that FEMA needs to improve its oversight processes to ensure that disaster funds are allocated and used efficiently. Yet despite these findings, FEMA continues to struggle to respond adequately to current crises.
The situation has frustrated many who are looking for answers. Why, they ask, is the Biden administration seemingly unable to allocate FEMA’s billions to disaster victims at a time when those funds are most needed? And why are Americans being asked to apply for meager sums of assistance while the federal government continues to support foreign humanitarian efforts to the tune of hundreds of millions of dollars?
For now, FEMA remains in a tough spot, with billions in unliquidated funds and increasing criticism over its handling of disaster relief. With the OIG’s report now in the public eye, questions about FEMA’s competence and the administration’s disaster response strategy are only likely to grow louder as the hurricane season continues.
The larger issue at hand is how the federal government manages its disaster relief efforts and whether FEMA’s failures stem from simple mismanagement or deeper political motivations. The $7 billion in unliquidated funds may hold the key to the answers that many hurricane victims are desperately seeking. Until then, the relief efforts remain underwhelming, and the American public continues to demand accountability from its government.
