James Varney: FEMA is Hoarding Billions of Dollars in Disaster Relief Money

But they'll give people without power or internet access $750 if they manage to get on the internet and apply for it.

And are not rejected -- which is reportedly happening to many or even most.

Although the Federal Emergency Management Agency told Congress last month that it had $4 billion in its Disaster Relief Fund, officials also warned that the Fund could have a shortfall of $6 billion by year's end, a situation FEMA says could deteriorate in the aftermath of Hurricane Helene.

While FEMA is expected to ask Congress for new money, budget experts note a surprising fact: FEMA is currently sitting on untapped reserves appropriated for past disasters stretching back decades.

An August report from the Department of Homeland Security's Office of Inspector General noted that in 2022, FEMA "estimated that 847 disaster declarations with approximately $73 billion in unliquidated funds remained open."

Drilling down on that data, the OIG found that $8.3 billion of that total was for disasters declared in 2012 or earlier.

Such developments are part of a larger pattern in which FEMA failed to close out specific grant programs "within a certain timeframe, known as the period of performance (POP)," according to the IG report. Those projects now represent billions in unliquidated appropriations that could potentially be returned to the DRF (Disaster Relief Fund)."

These "unliquidated obligations" reflect the complex federal budgeting processes. Safeguards are important so that FEMA funding doesn't become a slush fund that the agency can spend however it chooses, budget experts said, but the inability to tap unspent appropriations from long-ago crises complicates the agency's ability to respond to immediate disasters.

"This is an age-old game that happens and it doesn't matter what administration is in," said Brian Cavanaugh, who served as an appropriations manager at FEMA in the Trump administration. "It's unfortunate how complex disaster relief has become, but it's skyrocketing costs."

Cavanaugh said neither action from Congress nor an executive order from the White House would be required to tap those funds because FEMA is operating on the sort of continuing resolutions Congress routinely authorizes. If the money is part of "immediate needs funding," DHS Secretary Alejandro Mayorkas could draw from the billions in untapped money to help the victims of Helene and then inform lawmakers he was compelled to do so, leaving elected officials facing charges they sought to pinch pennies when Americans were desperate.

FEMA did not respond to a request for comment about whether it could access the earmarked funds.

Of course. Why should the Lords hoarding $73 billion of the peasants' money answer the peasants' questions about it?

Mayorkas just claimed that FEMA was out of money.

Mayorkas, whose Department oversees FEMA, stressed the agency is not broke, and both he and other FEMA officials said this week there was enough money in the Disaster Relief Fund to meet the needs of victims of Hurricane Helene, which with a death count of more than 200 stands as the most lethal storm to hit the U.S. since Hurricane Katrina in 2005.

...

The price tag on some of those services, such as those associated with assistance to immigration, has seen an unprecedented surge due to millions of illegal entrants during Biden's term. FEMA has spent more than $640 million on those programs in 2024, leading to criticism this week from Texas Republican Gov. Greg Abbott and others.

...

Portnoy first called attention to FEMA's unspent funds in conversations with RealClearInvestigations on Sept. 8. He said it seems bizarre that federal officials would have a pot substantial enough to cover a projected shortfall while adding billions to the Disaster Relief Fund, but fail to draw on it.

"There is all that money just sitting there," Portnoy said. "They're saying they don't have enough money but when you juxtapose it with the more than $8 billion, well, why not use that right now in Florida and other places?"

The "unliquidated obligations" have stayed on FEMA's books because it "subjectively" extended the deadlines on some projects. The deadline for 2012's Superstorm Sandy has been extended to 2026.

"As a result, the potential risk for fraud, waste, and abuse increases the longer a program remains open," a DHS report concluded.

And here's why: FEMA is deliberately keeping open these fake "obligations" to make the case for more federal funding.

Although DHS could probably reach into such unliquidated obligations to help restore order in areas devastated by Helene, experts note that bureaucracies are loath to resort to such tactics when budget negotiations are near, as they are when the fiscal year ends this month.

In other words: They don't want to draw from their hoarded stacks of billions because that would undermine their claims that they're "out of money" and need billions more.

This country is sick.

posted by Ace at 03:30 PM

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