Noem to cancel thousands of FEMA contracts after DOGE finds billions in ‘waste, fraud and unnecessary spending’

(L) Elon Musk shows off a shirt that says “DOGE” as he walks on the South Lawn of the White House. (Photo by OLIVER CONTRERAS/AFP via Getty Images) / (Background) Homeland Security Secretary Kristi Noem speaks during a press briefing. (Photo by Alex Brandon-Pool/Getty Images)

OAN Staff Brooke Mallory
1:41 PM – Friday, August 29, 2025

Homeland Security Secretary Kristi Noem is moving to cancel thousands of FEMA contracts after a review by the Department of Government Efficiency (DOGE) reportedly uncovered billions in waste, fraud, and unnecessary spending.

The report flagged expenditures including $10.7 million on public safety announcements, $3.3 million on employee marketing, $1.6 million for two undisclosed workshops, and more than $1.2 million for a “conference center concierge,” according to The Daily Caller.

Additional contracts targeted for cancellation involved brief meeting planning, shredding services, social media recruiting, and diversity programs.

“Any American who opened the books at FEMA and saw their lackluster spending controls and policies would be horrified,” a FEMA spokesperson told The Daily Caller. “Secretary Noem has been an extraordinary leader, bringing spending best practices, fiscal responsibility, and mission alignment to an agency that has run amok for far too long.”

On Thursday, Homeland Security Secretary Kristi Noem criticized the long-standing inefficiencies in federal disaster relief, calling for reforms to accelerate aid and give U.S. states greater control over long-term recovery.

Speaking at a FEMA Review Council meeting, Noem emphasized that reducing bureaucratic delays should be the top priority to ensure the timely delivery of emergency resources, including aid and search-and-rescue operations.

Her concerns echo longstanding warnings from the Government Accountability Office (GAO) and the Department of Homeland Security’s inspector general, both of which have repeatedly urged FEMA to tighten fiscal oversight and streamline disaster assistance amid persistent delays, mismanagement, and waste.

Past disasters and FEMA’s slow, inefficient response highlight the seriousness of the issue.

After Hurricanes Maria and Irma, FEMA claimed to have lost track of nearly 40% of supply shipments to Puerto Rico, worth roughly $257 million. The agency also awarded a $156 million meal contract to a one-woman company that delivered only 50,000 of the 30 million promised meals, according to reports.

A 2022 GAO review also found FEMA met its 189-day target for Public Assistance in only 14% of cases in one region, with average project awards taking more than a year. The COVID-era Lost Wages Assistance program generated $3.7 billion in improper payments, and FEMA’s National Flood Insurance Program remains $20.5 billion in debt.

Additionally, tensions within the agency have also surfaced: several FEMA employees were placed on leave this week after signing an open letter criticizing leadership, while others wrote to Congress warning that inexperienced Trump appointees could compromise hurricane response efforts.

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