FEMA faced payment delays and staffing cuts during 2025 leadership changes
Internal records and interviews show the agency held more than $15 billion in unspent funds by late 2025. Multiple grants and contracts required approval from then-DHS Secretary Kristi Noem before release.
insurancejournal.comBy the end of 2025, FEMA held more than $15 billion in unspent funds, according to internal figures reviewed by CNN. Lawmakers from multiple states reported months-long waits for disaster aid that had already been awarded. The delays centered on a requirement that Noem personally approve expenditures above $100,000.
One stalled item was a $2.5 million wildfire-mitigation grant for a California district represented by Rep. Kevin Kiley.
Leadership changes and internal operations Noem served as DHS secretary for 13 months before her removal in March 2026. During that period the agency cycled through four acting FEMA administrators and lost roughly 20 percent of its workforce, according to agency counts cited by CNN.
Staff reported that utility and security contracts lapsed, placing some secure sites housing hazardous materials within hours of losing coverage. Plans to cut staff by 50 percent were issued and later withdrawn multiple times.
Current status and upcoming season The new DHS secretary, former Sen.
Markwayne Mullin, has begun reversing some of the prior spending restrictions. Cameron Hamilton, removed from the acting FEMA post in May 2025, was reappointed to lead the agency in 2026. Atlantic hurricane season begins Monday. Agency officials stated they are filling vacancies and restarting training exercises.
A DHS spokesperson said FEMA remains prepared to support state and local partners. Kiley’s office told CNN the $2.5 million grant still has not been received.
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