Millions in FEMA funds remain unused as Hurricane Milton looms

The Biden-Harris administration has warned it does not have enough money to make it through the hurricane season, but the Federal Emergency Management Agency is sitting on millions of dollars of unused funds.

An August report from the Department of Homeland Security’s Office of Inspector General found unliquidated money that was appropriated for past disasters, including $8.3 million from disasters in 2012 or earlier.

“As of October 2022, FEMA estimated that 847 disaster declarations with approximately $73 billion in unliquidated funds remained open,” the report said.

The report said these unliquidated funds are caused by FEMA’s failure to close out “disaster declarations in a timely manner.”

“Without improved oversight and stronger policies, billions of dollars of unliquidated funds that could otherwise be returned to the Disaster Relief Fund will remain obligated to state, territorial, tribal, or local governments and unavailable for use in providing relief in connection with current disasters,” said the report, which was first reported by Real Clear Investigations.

The unliquidated funds are all a part of the budgeting process with safeguards built in to make sure the funds aren’t misappropriated. However, the money being tied up in decades-old disaster projects causes trouble for the agency when it comes to having to shell out money for new and immediate disasters.

The report found that other programs that were extended by FEMA “without detailed documented justification” represent over $7 billion in unliquidated funds “that could potentially be returned to the [Disaster Relief Fund].

“As a result, the potential risk for fraud, waste, and abuse increases the longer a program remains open and unliquidated funds continue to be available to recipients and subrecipients,” it said.

On Oct. 2, Homeland Security Secretary Alejandro Mayorkas told reporters that the immediate needs of those who were affected by Hurricane Helene were being met, but for any other storm, there may be a struggle.

Helene was a disastrous storm that hit Florida before plowing through several southeastern states, leaving more than 200 people dead. It is the most deadly storm since Hurricane Katrina in 2005.

“We are expecting another hurricane hitting — we do not have the funds, FEMA does not have the funds, to make it through the season,” Mr. Mayorkas said.

Hurricane Milton is now expected to make landfall as a Category 3 storm on the west coast of Florida on Wednesday.

White House spokesperson Emilie Simons said this storm “will be catastrophic” for anyone in its path. Preparing for Milton is especially strenuous for parts of Florida still trying to grapple with debris from Helene.

Hurricane season runs from June through November, with most occurring in September and October.

Officials have said that FEMA has already provided over $20 million in individual assistance.

FEMA has been stretched thin, with a record 28 storms hitting the United States in 2023 that caused over $1 billion in damages. The organization has hit the $1 billion threshold 19 times just this year, according to reports.

The agency’s Disaster Relief Fund has nearly run dry nine times since 2001.