New DHS Secretary Rescinds $100,000 Spending Approval Rule Affecting FEMA Operations
Homeland Security Secretary Markwayne Mullin eliminated a policy requiring his office to approve all DHS expenditures over $100,000, ending a rule that had delayed FEMA disaster response.
Homeland Security Secretary Markwayne Mullin on Wednesday rescinded a rule requiring personal approval from his office for all Department of Homeland Security expenditures over $100,000, eliminating a policy that had created delays in Federal Emergency Management Agency disaster response efforts.
The decision marks the first major policy change by Mullin, who was sworn in last week after President Donald Trump fired his predecessor Kristi Noem in March. Noem had implemented the approval requirement in June, directing that she personally sign off on any DHS expenditure exceeding the $100,000 threshold.
Critics said the policy created significant bottlenecks for FEMA, which routinely issues contracts and reimbursements well above that amount for disaster preparedness, response and recovery operations. A report by Democratic members of the Senate Homeland Security Committee found the rule had delayed at least 1,000 FEMA contracts, grants or disaster reimbursements by September. About $2.2 billion in recovery and mitigation funding remained in the approval queue as of Wednesday, according to FEMA data.
The International Association of Emergency Managers praised Mullin's decision, with president Josh Morton saying the previous policy had created "an untenable situation for emergency managers" and hindered programs that protect Americans from disasters. Republican Senator Thom Tillis of North Carolina had been among the sharpest critics of the rule, telling Noem "You've failed at FEMA" at a Senate hearing the day before she was fired.
The policy change comes as DHS remains in a shutdown that has lasted 46 days, now the longest government shutdown in U.S. history. Republican lawmakers signaled Wednesday that an agreement to end the shutdown could be reached in the coming days. Congress is working to pass bills to fully fund Homeland Security operations.
While Mullin's action is expected to streamline the contracting process, the immediate impact may be limited due to the ongoing shutdown. FEMA's Disaster Relief Fund, which pays for response and recovery activities, is running low with about $3.6 billion remaining. The pending DHS appropriations bill would add just over $26 billion to the fund.