FEMA funds blocked illegally, GAO finds

A federal watchdog has ruled that the Federal Emergency Management Agency (FEMA) broke the law by blocking or delaying aid money that Congress had already approved, including funds for programs that provide shelter and food.

The Government Accountability Office (GAO), which oversees federal spending on behalf of Congress, said in a decision released this week that FEMA violated the Impoundment Control Act, a 1974 law that bars presidents and agencies from unilaterally withholding money that Congress has appropriated.

GAO said FEMA illegally withheld funding for the Emergency Food and Shelter Program and the Shelter and Services Program (SSP). Both initiatives provide aid to people in crisis — including migrants and disaster survivors.

“The totality of the facts and circumstances here therefore establish the intent to impermissibly defer or preclude the obligation of budget authority for the SSP program,” GAO wrote.

The ruling comes after the Department of Homeland Security — which oversees FEMA — reportedly failed to respond to GAO’s requests for information about whether federal funds were being held back.

GAO said it relied on court records, testimony and public spending data to reach its conclusion.

Not all programs were affected. GAO found no violations in several other FEMA grant programs, including those supporting homeland security, firefighter staffing and disaster preparedness.

The GAO emphasized that it was not weighing in on the policies behind the funding decisions, only whether FEMA followed the law.

GAO added that it will issue further rulings on other FEMA funds in the coming months, including money for the Building Resilient Infrastructure and Communities program.

A key Democratic lawmaker weighed in on the announcement.

“This is another stark reminder of a fact we have known for months; President Trump is breaking the law in order to prevent communities across the country from receiving resources they have been promised, including critical funding to address homelessness,” U.S. Sen. Patty Murray (D-Wash.) said in a statement issued Monday. “The same guy who says he wants to get people off the streets is blocking funding for communities to tackle homelessness.

“Donald Trump and (OMB Director) Russ Vought need to immediately allow these resources to flow, and Republican lawmakers need to join us insisting every last bit of this funding gets out the door in a fair, impartial way.”

GAO also warned that some of the unspent funds are set to expire by the end of the fiscal year, making it “crucial that the agency prudently obligates these funds prior to their expiration.”