Noem Cancels FEMA Contracts After DOGE Finds Billions in Waste

The Department of Homeland Security is scrapping thousands of Federal Emergency Management Agency (FEMA) contracts after billions of dollars in waste and fraud were found.

The Department of Government Efficiency (DOGE) found FEMA spending on inflated contracts, duplicate services and programs it called fraudulent or unnecessary. In response, DHS is moving to cancel the contracts and boost oversight.

“Any American who opened the books at FEMA and saw their lackluster spending controls and policies would be horrified,” a FEMA spokesperson told the Caller. “Secretary [Kristi] Noem has been an extraordinary leader, bringing spending best practices, fiscal responsibility, and mission alignment to an agency that has run amok for far too long.”

Nearly $10.7 million went to the Ready Campaign’s media deliverables for public safety announcements, while another $3.3 million funded internal marketing meant to cajole FEMA employees into completing an annual survey.

The agency also spent $1.6 million on two workshops that covered basics like agendas, save-the-date emails, venue reservations and transportation. Another $1.27 million went to a “conference center concierge” tasked with setting up rooms, arranging audio equipment and keeping spaces clean.

FEMA also paid $645,000 to plan short meetings — some lasting barely an hour with fewer than 15 people — including the preparation of talking points and fact sheets.

Other contracts included $594,000 to file and shred paperwork for the Employee Relations Branch, $500,000 for a social media recruiting push and $150,000 for a diversity and employee coaching program.

“I applied that night and I actually got a call the next day to do an interview,” said Latosha G., whose testimonial was part of the $500,000 recruiting initiative. “And I actually ended up getting a job as a local hire. A position came open as a data management specialist. I applied, I actually got an interview, and I actually got the position.”

Watchdogs including the Government Accountability Office (GAO) and DHS’s inspector general have for years urged FEMA to strengthen fiscal controls, streamline disaster aid and speed up relief. GAO has repeatedly cited slow approvals, while OIG reports have flagged weak oversight and sloppy procurement practices that waste billions.

The Trump administration responded with reforms aimed at boosting accountability, efficiency and response. One change required disaster survivors at monthly recertification meetings to show progress toward permanent housing, with goals deemed “realistic” and “achievable” in light of their pre-disaster living conditions.

But FEMA’s top brass resisted deeper reforms. Cameron Hamilton, the senior official previously acting as FEMA administrator, defended the agency’s status quo during Noem’s confirmation hearing, and was ousted days later. He was replaced by David Richardson.

FEMA’s track record shows the waste runs deeper than inflated contracts. A 2022 GAO report found the agency met its 189-day Public Assistance target in just 14% of projects in one region, with the average award taking more than a year.

After Hurricanes Maria and Irma, the DHS inspector general reported FEMA lost track of nearly 40% of supply shipments to Puerto Rico — about $257 million worth — while recovery funds sat idle for years. FEMA also handed a $156 million meal contract to a one-woman firm, which managed to deliver only 50,000 of the 30 million meals promised.

The COVID-era Lost Wages Assistance program piled on another $3.7 billion in improper payments, with separate audits flagging billions more in questionable spending. FEMA’s National Flood Insurance Program remains $20.5 billion in debt to the Treasury despite repeated GAO warnings that it is structurally unsound.