Home » Wasteful FEMA Spending Topped $9 Billion During the Pandemic

Wasteful FEMA Spending Topped $9 Billion During the Pandemic

One grant for $1.1 billion was supported by one sheet of paper and didn’t include itemized costs for the project.

It’sbeennearlyfiveyears,andthetotalcostofwastefulCOVID-eraspendingisstillbeingrealized.ArecentDepartmentofHomelandSecurity’sOfficeofInspectorGeneral(OIG)reportilluminatesseveralexamplesofwaste,fraud,andabuseattheFederalEmergencyManagementAgency(FEMA).  TheOIGfoundtheagencyoverobligated“atleast$1.5billioninfundsforonestate’smedicalstaffinggrant.”Additionally,FEMAfailedtoproperlyvetfundingtothestate,leadingto$8.1billionofquestionablespending. Duringthepandemic,FEMAdevelopedastreamlinedprocesstoawardreimbursementsthroughitsPublicAssistanceProgram.Insteadofawardingfundingtoaprojectbasedonactualcoststhatwerecomparabletocurrentmarketrates,theagencyofferedreimbursementsbasedoncostestimates.Thenewprocess,designedtogetdisasterfundingoutofthedoorfaster,generatedlessoversightandmorefraudulentspending.  Thestate,whichtheOIGdoesnotname,receivedabout$853millionfromFE