The Federal Emergency Management Agency mismanaged nearly $10 billion in Covid funding as the agency raced to help states counter the pandemic, according to an inspector general audit.
FEMA distributed $8.1 billion “in questioned costs that have yet to be determined allowable,” the audit says. Another $1.5 billion was allocated prematurely and “could have been put to better use for other disasters.”
The audit is likely to intensify scrutiny of FEMA as President Donald Trump contemplates abolishing the agency he recently called “a disaster.” Trump created a council, led by Homeland Security Secretary Kristi Noem and Defense Secretary Pete Hegseth, to review FEMA and recommend changes by late June.
FEMA has struggled for the past two years to handle a growing number and intensity of natural disasters and was forced in 2023 and 2024 to restrict disaster aid as funding dwindled. Trump has been particularly critical of the agency’s response to Hurricane Helene in western North Carolina, although he has not cited specific shortcomings.
