US Emergency Management Agency accused of spending billions of dollars

(CLO) The US Federal Emergency Management Agency (FEMA) was found to have mismanaged tens of billions of dollars over many years, according to government audit reports.

The agency faces allegations of waste and mismanagement in its response to COVID-19, natural disasters and housing assistance for immigrants.

The latest audit found that nearly $10 billion was mismanaged between 2020 and 2023, including a $1.1 billion grant based on a piece of paper without specific costs. A January 30 report from the Office of Inspector General of the US Department of Homeland Security concluded that FEMA did not follow regulations when distributing the funding.

During the pandemic, $1.5 billion was given to a single state’s health care team without proper vetting, while another $8.1 billion was not determined to be eligible. Former Republican congressman Garret Graves, who is considered a leading candidate to lead the agency, criticized the agency for failing to do disaster relief.

Photo: FEMA

On February 10, Elon Musk announced that FEMA had allocated $59 million to house immigrants at a luxury hotel in New York, an action that was deemed illegal. The next day, four FEMA employees, including the chief financial officer, were fired over the payment.

According to previous audits, FEMA spent more than $1.4 billion on housing and immigration aid in the past two years. A 2023 report found that $110 million in humanitarian aid was misused, lacked proper documentation, and even went to illegal immigrants.

In October 2024, FEMA was criticized for not having enough money to handle the Atlantic hurricane season, while Hurricanes Helene and Milton caused $60 billion in damage. Congress later allocated $20 billion to FEMA, but in just over a week, the agency spent $9 billion.

An August 2024 audit found that FEMA had wasted $7 billion due to procedural errors, and another $32.8 billion in improper payments. The report also found that FEMA had no incentive to close grants on time, leading to much of the money being spent ineffectively.

FEMA’s waste problem was flagged by the US House of Representatives in 2017. The US Committee on Oversight and Government Reform discovered that the agency spent millions of dollars to build mobile homes for disaster victims but then gave them away or sold them at low prices.

FEMA was created in 1979 by executive order of President Jimmy Carter to provide disaster assistance and emergency management. However, the agency's mismanagement and wasteful spending continue to be a source of controversy.

Ngoc Anh (according to NYP, Newsbreak)

Source: https://www.congluan.vn/co-quan-quan-ly-tinh-trang-khan-cap-my-bi-cao-buoc-chi-sai-hang-ty-usd-post334121.html