$900 Million in Disaster Relief Funds Held Up by Secretary Noem’s Policy

By Jim Thomas | Friday, 19 December 2025 08:50 PM EST

More than $900 million in Federal Emergency Management Agency grants and loans are awaiting approval under Homeland Security Secretary Kristi Noem’s policy requiring her personal review of major expenditures.

The backlog has raised concerns about disaster recovery timelines as communities nationwide seek reimbursement for emergency response and rebuilding costs. Department of Homeland Security policy mandates that Noem personally review all expenditures exceeding $100,000.

A FEMA spokesperson did not confirm the $900 million backlog but stated: “Since taking office, Secretary Noem has reviewed more than 5,000 contracts and reviews all contracts within 24 hours.” The spokesperson added that the review process has saved taxpayers $10.7 billion.

The policy has drawn criticism from current and former FEMA employees, including those who signed the Katrina Declaration—a letter arguing that the Trump administration’s approach is weakening disaster response. Critics state the review process “reduces FEMA’s authorities and capabilities to swiftly deliver our mission,” citing delays of up to 72 hours during deadly Texas floods earlier this year.

Michael Coen, former FEMA chief of staff during the Obama and Biden administrations, stated: “Holding up that much money will be adversely affecting recovery in states across the country.” He noted grants fund projects such as repairing schools, roads, and bridges, and clearing debris after disasters.

Noem described the policy as a matter of “accountability,” saying: “It’s not extra red tape. It’s making sure everything is getting to my level, and that it’s immediately responded to.”

Coen explained that prior administrations relied on audits rather than centralized approval: “We would have KPMG come in and do financial audits; there was constant auditing being done.” He added that expenditures over $1 million previously triggered notifications to the Office of Management and Budget.

Pete Gaynor, who led FEMA during President Trump’s first term, questioned the policy’s practicality: “I’m not sure how you practically run … a department made up of almost 20 individual entities and micromanage their expenditures $100,000 at a time.”

A FEMA source indicated that projects in Kerrville, Texas—including debris removal and bridge repairs—are among those affected by the backlog. A Kerrville spokesperson stated the city has not experienced issues.

The administration’s broader plans for FEMA remain unsettled. Trump and Noem have floated eliminating the agency but have more recently emphasized reform.

Jim Thomas is a writer based in Indiana. He holds a bachelor’s degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.

Politics