FEMA Didn’t Properly Vet Border Nonprofits That Received Millions in Federal Funds: Inspector General

A report by the Department of Homeland Security (DHS) Inspector General has found that some organizations involved in providing relief at the U.S. Southwest border were not required to provide all necessary documentation before being awarded federal humanitarian relief funds. The FEMA-managed Emergency Food and Shelter Program (EFSP) specifically provides relief funds to those affected by the migrant crisis, and received $80 million in funding from the $110 million given to FEMA under the American Rescue Plan Act. The DHS Inspector General examined around $12.9 million of this money and flagged $7.4 million, or 58%, as lacking in sufficient supporting documentation. The LROs that received funding also failed to provide the necessary documentation for some of the individuals and families who benefited from their services. The report criticizes FEMA for its failure to oversee the distribution of the funds, and for its reliance on local boards and fiscal agents to enforce funding and application guidance.

The Inspector General’s review identified several issues with the distribution of the funds. In one instance, an LRO claimed $7.3 million in expenses but could not provide sufficient supporting documentation for these claims. The LRO paid $11.7 million for COVID-19 testing between May and September 2021, but did not provide documentation for its labor charges. Instead, the contractor multiplied the number of employees by 24 hours per day to calculate this expense. Some of the families and individuals who received relief funds did not have a DHS encounter record.