FEMA Faces Scrutiny Over Billions in Mismanaged Funds and Revoked NYC Migrant Aid

A DHS audit reveals FEMA mishandled nearly $10 billion during the pandemic, while the Trump administration halts $80 million in migrant shelter funding to New York City.

A DHS Inspector General audit found FEMA mismanaged $9.6 billion in COVID-19-related grants between 2020 and 2023, citing inadequate cost validation and oversight.
The audit highlighted $8.1 billion in questionable expenses and $1.5 billion allocated to a state without proper vetting, funds that could have been redirected to other disaster relief efforts.
The Trump administration revoked $80 million in FEMA funds allocated to New York City for migrant shelters, citing alleged misuse, including payments for luxury hotels, though city officials dispute the claims.
Four FEMA employees were terminated for bypassing leadership in approving payments, as Acting FEMA Administrator Cameron Hamilton confirmed the suspension of funds to NYC.
Criticism of FEMA’s financial oversight has reignited debates over the agency’s future, with some officials, including DHS Secretary Kristi Noem, suggesting its potential dissolution.