By Jim Thomas | Friday, December 19, 2025, 8:50 p.m. EST
Over $900 million in FEMA grants and loans remain pending approval due to Homeland Security Secretary Kristi Noem’s policy that mandates her direct review of all expenditures exceeding $100,000. The backlog has raised concerns about disaster recovery timelines as communities nationwide seek reimbursement for emergency response and rebuilding costs.
According to an agency source who spoke to The Hill, the Department of Homeland Security policy requires Noem to personally review expenditures of $100,000 or more. This process reportedly affects funding intended for disaster preparedness, debris removal, and long-term recovery projects across the country.
The figure aligns with reporting from the Alt-FEMA Substack newsletter, which was allegedly authored anonymously by a FEMA employee. The stalled funds highlight how the review policy—applying across DHS rather than just FEMA—is impacting operations at the disaster response agency.
“Holding up that much money will be adversely affecting recovery in states across the country,” said Michael Coen, who served as FEMA chief of staff during the Obama and Biden administrations. He noted grants subject to the review process pay for critical projects such as repairing schools, roads, and bridges, and clearing debris after disasters.
A FEMA spokesperson declined to 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 signatories of the Katrina Declaration—a letter arguing the Trump administration’s approach is weakening disaster response. They asserted 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.
The Trump administration has defended the policy as a safeguard against waste. Noem told NBC News, “It’s not extra red tape—it’s making sure everything is getting to my level, and that it’s immediately responded to,” describing the policy as a matter of “accountability.”
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 said, adding 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 whether the policy is workable. “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,” he told a news outlet.
A FEMA representative indicated that flood-related projects in Kerrville, Texas—including debris removal and bridge repairs—are among those affected by the backlog. However, a Kerrville spokesperson stated the city has not experienced issues. FEMA reported approving over $73 million in assistance applications across central Texas.
The administration’s broader plans for FEMA remain unsettled. President Trump and Secretary Noem have floated eliminating the agency but have more recently emphasized reform.
