Noem demands more control over FEMA and Homeland Security funding, which could slow disaster response
Homeland Security Secretary Kristi Noem is tightening her grip on her department's purse strings, ordering that every contract and grant over $100,000 must now cross her desk for approval, according to a memo exclusively obtained by CNN.
The sweeping directive issued last week adds an extra layer of review for billions of dollars in funding across the Department of Homeland Security, which includes agencies such as US Customs and Border Protection, the Coast Guard, Secret Service and Federal Emergency Management Agency.
It's the latest in a string of moves the Trump administration has billed as rooting out waste and fraud but that could have wide-ranging implications for federal agencies, particularly DHS as it is charged with multiple mission sets including emergency response.
Officials inside FEMA warn the new approval process could severely disrupt the distribution of emergency funds during natural disasters. With hurricane season already underway, multiple sources told CNN that Noem's policy threatens to bog down FEMA's rapid-response efforts – and could choke off critical aid when every second counts.
One FEMA official directly involved in disaster response called the policy 'a dramatic and unprecedented overreach' and contends that Noem 'is effectively preventing the department from functioning.'
'This will hurt nonprofits, states, and small towns. Massive delays feel inevitable,' said the official who asked not to be named to speak candidly.
'It's bonkers,' said a former senior FEMA official who asked to remain anonymous for fear of reprisals.
Noem rolled out the change in an internal memo, demanding that all funding requests for her review include extensive details – mission impact, dollar values, descriptions of the supplies or services, timeliness issues, and a description of the proposed action.
She warned that each review would likely take at least five days.
Homeland security grants and contracts span a wide range of efforts, including securing transit, guarding against terrorism, bolstering cybersecurity and helping local firefighters. But FEMA funds make up a huge proportion of the funding.
In the chaos of a major disaster, FEMA can greenlight hundreds of payments and spend billions of dollars in just days. During Hurricanes Helene and Milton, the agency obligated roughly $7 billion in a single month, a FEMA document shows.
Now, those urgent funding requests could be funneled to Noem's office, raising fears of bureaucratic gridlock.
'I was shocked. I've never seen a control like this put in place,' said Michael Coen, who served as FEMA's chief of staff under the Biden and Obama administrations.
'The amount of documentation and explanation that FEMA would have to do to justify expenditures would cause paralysis,' he added. 'If lives are at stake, I believe FEMA staff would either disobey that memo or they'll quit.'
CNN reached out to DHS about these concerns, specifically asking how the department would ensure disaster funds flow swiftly. In response, a DHS spokesperson emphasized Noem's commitment to accountability.
'Under Secretary Noem's leadership, DHS is rooting out waste, fraud, abuse, and is reprioritizing appropriated dollars,' a DHS spokesperson wrote. 'Secretary Noem is delivering accountability to the U.S. taxpayer, which Washington bureaucrats have ignored for decades at the expense of American citizens.'
In March, Noem imposed a similar rule for contracts and grants over $25 million, a move that alarmed emergency management officials even then. The new, much lower threshold of $100,000 could bring disaster response to a crawl if her office can't keep up with the approvals, sources said.
'The idea a Cabinet secretary is approving anything over $100,000 is designed on purpose to not pay people,' the former senior FEMA official said.
Noem's close scrutiny of FEMA has extended beyond spending. In recent weeks, she has installed at least half a dozen homeland security officials – many with little experience in disaster management – into FEMA's front office, where they are now steering the agency's day-to-day operations.
President Donald Trump and Noem have vowed to phase out FEMA after the 2025 hurricane season, which ends on November 30, and plan to shift the burden of disaster relief to the states. Noem is also co-chairing a new FEMA Review Council, which is expected to recommend sweeping reforms to the agency in the coming months.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Hemp industry advocates respond to Texas THC ban, plea with Gov. Abbott to veto SB 3
The clock is ticking louder as the deadline is fast approaching for Texas' proposed hemp-derived THC ban bill. The bill - Senate Bill 3 — was authored by Lubbock Republican State Sen. Charles Perry to help close a loophole Lt. Governor Dan Patrick said was "exploited" to grow the THC market in Texas. However, the sweeping ban is set to impact the $8 billion hemp industry. Others are reading: Patrick, Perry defend proposed Texas THC ban after smoke shop exploit hemp loophole The bill has garnered backlash from both sides of the aisle, with hemp advocates calling on Texas Gov. Greg Abbott to veto the bill, including the Texas Hemp Coalition. "The Texas Hemp Coalition is calling on Governor Greg Abbott to veto Senate Bill 3 before his midnight deadline on June 22nd. This is a deeply flawed measure that would devastate Texas' legal hemp industry and harm farmers, entrepreneurs, and consumers across the state," reads a statement from the coalition. According to the organization, SB 3 would have the following impact on Texas: Eliminates Jobs — Over 50,000 jobs are at risk across farming, processing, retail, and manufacturing. Hurts Small Business — Hundreds of independently owned stores and operations could be forced to shut down. Contradicts Federal Law — SB 3 restricts hemp products legal under the 2018 Farm Bill. Endangers Public Safety — Driving the industry underground removes consumer protections like testing, labeling, and age restrictions. Undermines Texas Agriculture — Many Texas farmers have invested heavily in hemp as a rotational crop and income stabilizer. Benefits Other States — Neighboring states with legal hemp markets will absorb displaced Texas customers and businesses. Pushes business to the illicit market with no checks and balances which doesn't protect our consumers and citizens. The coalition's executive director, Illissa Nolan, said in a statement that the hemp industry doesn't want a free pass but rather fair rules, and "supports strong, science-based regulation including age limits, robust testing, and clear labeling." "This bill overreaches, penalizes responsible businesses, and guts a legal industry that has grown under aclear federal and state regulatory framework," said Nolan. "Governor Abbott has a history of supporting small business and rural economies. We respectfully ask him to stand with us again and protect one of the most promising sectors of Texas agriculture and entrepreneurship.' Others are reading: Lt. Gov. Patrick, Sen. Perry tout legislative victories in Lubbock stop During the 89th Texas Legislature's regular session, the bill cleared the Senate 26-5, with it being amended in the House and passing 87-54. With the Senate agreeing to the House's amendment, the bill was sent to Abbott's desk on May 27, starting the clock. The governor has until June 22 to do one of the following: Sign it — it becomes law and is effective starting Sept. 1. Veto it — with the House having the chance to overturn the veto. Not sign it — still becomes law effective starting Sept. 1. Abbott has not tipped his hand as to which of the three options he is leaning towards as the deadline approaches. Mateo Rosiles is the Government & Public Policy reporter for the Lubbock Avalanche-Journal. Got a news tip for him? Email him: mrosiles@ This article originally appeared on Lubbock Avalanche-Journal: Hemp industry advocates urge Texas Gov. Greg Abbott to veto THC ban
Forbes
28 minutes ago
- Forbes
Trump Criticizes Windmills In Latest Attack Against Wind Energy
President Donald Trump blasted green tax breaks and windmills in a rant about his signature budget package moving through Congress, tacking onto his longstanding criticism of the turbines even as they have become an increasingly cost-effective form of energy. US President Donald Trump waves as he boards Air Force One at Morristown Municipal Airport in ... More Morristown, New Jersey, on June 21, 2025 as he returns to the White House from his golf club in Bedminster, New Jersey. Photo by MANDEL NGAN/AFP via Getty Images Trump said in a Truth Social post he 'HATED' green tax credits in the 'Big Beautiful Bill,' saying the cuts are largely a 'giant SCAM.' The bill, a massive measure currently in the Senate that will extend tax cuts passed by Trump during his first term, will remove or limit tax credits for electric vehicles and home energy efficiency if passed, as well as create gradual, year-by-year cuts to wind and solar farm tax credits. Trump said windmills 'are the most expensive and inefficient energy in the world' and are 'destroying the beauty of the environment.' The president also claimed, without evidence, windmills are '10 times more costly than any other energy,' taking issue with government subsidies linked to turbines. Get Forbes Breaking News Text Alerts : We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here . What Has Trump Said About Windmills ? Shortly after taking office, the president said the government would not subsidize new windmill farms and added he doesn't 'want even one built' during his second term. Trump called wind turbines the 'most expensive energy' that only works 'with massive government subsidies, which we will no longer pay.' Trump could potentially impact windmill production on federal lands, but not on privately owned plots. Trump has also falsely claimed windmills kill whales, though there is no evidence supporting the claim about the mammals and offshore turbines. Not likely. The Department of Energy has said 'wind and solar projects are now more economically competitive than gas, geothermal, coal, or nuclear facilities,' though windmills in locations lacking wind could be an exception. Onshore wind turbines saw global costs of energy production fall by 68% in 2021, according to a report from the International Renewable Energy Agency, which noted onshore capacity increased four-fold from 2010 to 2021. The agency also reported onshore wind project costs fell by 13% while offshore wind projects fell by 9% in 2020. Key Background Trump once lost a legal battle in which he sought to block the construction of an offshore wind farm in view of a golf course project of his in Scotland. The president lost in court and was required to pay over $290,000 in legal fees to the Scottish government. His scrutiny of windmills is a change from his first term, when former Interior Secretary Ryan Zinke said he was 'very bullish on offshore wind,' adding the harnessing of the energy source was 'a big part of the Trump Administration's made in America energy strategy.' Trump's Tax Cuts Would Raise Deficit By $2.8 Trillion, New Estimate Suggests (Forbes) Trump Calls Windmills 'An Economic And Environmental Disaster' In Latest Rant Against Turbines (Forbes)
Yahoo
33 minutes ago
- Yahoo
Major grocery chain to close over 60 locations by end of 2026
Kroger will be closing more than 60 stores it considers underperforming across the U.S. by the end of 2026, according to a recent announcement by the grocery chain. The news was part of Kroger's first-quarter earnings report, which was released on Friday. It states that the closures are expected to provide the company a "modest financial benefit." "In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit," the company said in the report. Kroger said it aims to reinvest the money it saves through the closing into improving its customer experience at other stores. "Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance," the company said. The report was also clear to mention that none of the forthcoming changes signal a need for layoffs. Employees at the affected stores will be offered roles in other stores, according to the report. The company's first-quarter earnings fell to $866 million, down from $962 million during the same quarter last year. Its total sales were also down, from $45.3 billion last year to $45.1 billion this year. Despite the first quarter losses, the company still increased its full-year earnings forecast to between 2.25 percent and 2.35 percent growth. The chain said that demand for its fresh food, store branded products, and its digital services is strong and will likely remain so throughout the year. While the company is closing stores by the end of next year, it also announced plans to open around 30 new stores by the end of this year. Kroger operates nearly 2,800 stores in the U.S. under the name Kroger as well as Ralphs, King Soopers, Fredy Meyer and Harris Teeter. The company is currently in the process of selecting a new CEO after its previous CEO, Rodney McMullen, resigned in March amid an internal ethics investigation. Sign in to access your portfolio
