FEMA's $10BN Covid spending spree revealed: $8.1BN on 'questioned costs', $1.5BN 'overspend' on one state's medical staff and $32.8MN in 'improper payments'

The Federal Emergency Management Agency (FEMA) mismanaged almost $10billion during the Covid pandemic, a government audit has revealed.

The report revealed staggering figures: $1.5 billion for a state’s medical staff, $8.1 billion for ‘questioned costs,’ and an additional $32.8 million for ‘improper payments’.

Following this, President Trump made headlines by firing FEMA’s Chief Financial Officer Mary Comans. This decision came after it was disclosed that the agency had paid an astonishing $59 million to luxury hotels in New York City to accommodate illegal immigrants.

The January audit by the department of Homeland Security focused on FEMA’s handling of the pandemic between January 2020 and 2023. 

It uncovered that FEMA mismanaged billions of dollars and ‘failed to follow established requirements when delivering Public Assistance funding’.

Among the expenses unearthed was the allocation of $1.5 billion to a state, not specified in the report, without appropriate scrutiny. This misallocation was criticized as these funds could have been utilized more effectively for other emergency situations.

The report said: ‘These issues occurred due to the unprecedented circumstances surrounding the COVID-19 pandemic and FEMA not following established requirements when delivering public assistance funding.’ 

Elon Musk with his son in the Oval Office. Musk has hinted that his team at DOGE could target FEMA next

Elon Musk with his son in the Oval Office. Musk has hinted that his team at DOGE could target FEMA next

Medical staff treat a Covid patient in January 2022 (file image). The report revealed that $1.5billion was spent on one state's medical staff, plus $8.1billion on 'questioned costs' and a further $32.8million on 'improper payment'

Medical staff treat a Covid patient in January 2022 (file image). The report revealed that $1.5billion was spent on one state’s medical staff, plus $8.1billion on ‘questioned costs’ and a further $32.8million on ‘improper payment’

The January audit by the department of Homeland Security covers the fiscal years from January 2020 to 2023

The January audit by the department of Homeland Security covers the fiscal years from January 2020 to 2023 

It also uncovered $8.1 billion distributed by FEMA which are ‘costs that have yet to be determined allowable’ and identified $32.8million in ‘improper payments’.

The new findings of financial mismanagement comes just days after Elon Musk and his DOGE team found out that FEMA sent payments of $59 million to luxury hotels in New York City to house migrants.

Musk has said that the agency, which falls under the Department of Homeland Security (DHS), needs take action to get the money back. 

It’s unclear if the demand will be met, but if it is, FEMA would be able to recuperate the millions in already-distributed funds.

‘Sending this money violated the law and is in gross insubordination to the President’s executive order,’ Musk wrote on his X platform on Monday.

He added: ‘That money is meant for American disaster relief and instead is being spent on high end hotels for illegals!’

In response to the Musk’s findings, FEMA’s Chief Financial Officer Mary Comans lost her job.

‘Effective immediately, FEMA is terminating the employment of four individuals for circumventing leadership to unilaterally make egregious payments for luxury NYC hotels for migrants,’ Assistant DHS Secretary Tricia McLaughlin said in a statement.

‘Firings include FEMA’s Chief Financial Officer, two program analysts and a grant specialist,’ she noted.

Comans and her team are arguably the most powerful group at FEMA as they control its billions of dollars in funding. 

Assistant Secretary McLaughlin said that her boss, DHS Secretary Kristi Noem, would continue to take action to make sure Trump’s orders are being followed by her department and the agencies that fall beneath it.

Illegal migrants wait outside the Roosevelt Hotel in New York City as they are sheltered there on federal funding

Illegal migrants wait outside the Roosevelt Hotel in New York City as they are sheltered there on federal funding 

FEMA's Chief Financial Officer Mary Comans (pictured) lost her job along with three others involved in disbursement of the funds

FEMA’s Chief Financial Officer Mary Comans (pictured) lost her job along with three others involved in disbursement of the funds 

‘Under President Trump and Secretary Noem’s leadership, DHS will not sit idly and allow deep state activists to undermine the will and safety of the American people,’ McLaughlin said in a statement provided to DailyMail.com.

Musk has hinted that FEMA could be shut down next just one week after the thousands of employees with USAID (United States Agency for International Development) woke up to emails instructing them to stay home because the Washington, D.C. headquarters were shuttered.

Others were shocked to find themselves locked out of their work systems last week – and those overseas were told that travel back to the U.S. would be arranged within 30 days.

FEMA could be next on the chopping block, but it raises concern for those who are worried Americans faced with emergencies and natural disasters will no longer receive much-needed government aid in the future. 

The agency falls under the purview of DHS Secretary Kristi Noem. The former South Dakota governor said Sunday that if Trump asked her about FEMA, she would recommend that he ‘get rid’ of the agency.

Former President Joe Biden faced a backlash for housing migrants in hotels rather than spending the money on arrest and deportation efforts.

Biden also spent funds on providing other aid to illegal immigrants, including giving them cell phones. 

The Federal Emergency Management Agency (FEMA) emerged as next on chopping block for firings and cuts when Elon Musk targeted them on X for going against President Trump's orders to pause any spending that goes against his executive orders

The Federal Emergency Management Agency (FEMA) emerged as next on chopping block for firings and cuts when Elon Musk targeted them on X for going against President Trump’s orders to pause any spending that goes against his executive orders

FEMA was also at the center of controversy last year when it was also excoriated for an overall slow and underwhelming response to the deadly and destructive hurricanes that hit the Eest Coast.

Marn’i Washington was a FEMA supervisor who claims she was fired as a scapegoat because the agency claimed she was independently instructing workers in Florida to avoid surveying streets known to be more supportive of Trump.

Washington told DailyMail.com she has ‘information that proves FEMA is lying’ and that the agency told workers to avoid more ‘hostile’ areas in the aftermath of Hurricane Milton in Florida.

She claims FEMA also told workers to not approach homes with Trump signs in North Carolina.

You May Also Like
What to know about Chinese New Year food traditions

Chinese New Year Food Customs: What You Should Know

SAN FRANCISCO — China Live is at the center of San Francisco’s…
‘Severance’s Tramell Tillman Reveals Which “Woe’s Hollow” Scene Nearly Made Him Break Character: “I Almost Lost It”

The actor Tramell Tillman from “Severance” shares the emotional scene from “Woe’s Hollow” that almost caused him to lose his composure.

Tramell Tillman, who plays Seth Milchick in Season 2 of Severance, is…
Did the Mouse Just Blink? Disney Reportedly Drops Two DEI Programs As Investor Backlash Grows

Disney Reportedly Cancels Two DEI Programs Amid Rising Investor Criticism

While selecting the main image for this article, I pondered about Walt…
‘It’s Always Sunny in Philadelphia’ EP Megan Ganz Says The Gang Is Going Crazy After the Eagles Super Bowl Win: “At Least One Of Them Is Probably In Jail For Punching A Police Horse”

“After Eagles Super Bowl Win, One ‘It’s Always Sunny in Philadelphia’ EP Reveals The Gang’s Wild Reaction”

Following the Philadelphia Eagles’ impressive victory against the Kansas City Chiefs in…
Chicago weather forecast: Snow storm moving into area with 3-6 inches of snowfall accumulation expected | Radar

Upcoming Chicago Weather: Snowstorm Approaching, Anticipating Accumulation of 3-6 Inches | Radar

CHICAGO (WLS) — A winter storm Wednesday is expected to dump several…
Former Overstock CEO Gears Up for Another Hearing in Dominion Voter Fraud Suit

Former Overstock CEO prepares for another court session in Dominion voting fraud case.

Last Updated on February 10, 2025 Former Overstock CEO Patrick Byrne is…
Kanye West ditched by talent agent and swastika T-shirt site is removed amid backlash for spreading Nazi hate

Kanye West’s talent agent parts ways with him as controversy surrounds Nazi-themed merchandise.

Kanye West was dropped by the talent agency 33 & West in…
Meghan Markle is 'lowering her status' to make Prince Harry look like a 'hero' with her 'limpet cling' shoulder nuzzles and arm hugs at Invictus Games, body language expert claims

“Body Language Expert Analyzes Meghan Markle’s Supportive Gestures at Invictus Games”

Meghan Markle knows that when she steps out in public, the world’s…
Firefighters battle inferno after reported explosion near Texas airport, at least 5 injured

Firefighters are fighting a large fire after an explosion near a Texas airport, causing injuries to at least 5 people

Approximately five individuals sustained injuries following an alleged car blast that triggered…
Feds likely eyeing 'cover-ups' to bust Mexican cartels along border: former DEA agent

Former DEA agent suggests that federal authorities are probably investigating attempts to conceal illegal activities in order to dismantle Mexican drug cartels operating along the border

Mexican drug cartels have outfitted dozens of tunnels with rail and cart…
Karen Read loses double jeopardy appeal in Boston cop slaying case, will receive new trial

Karen Read’s appeal denied in Boston police officer murder case, granted new trial

The appeal made by the Massachusetts woman accused of killing her Boston…
HE'S HOME: Freed Political Prisoner Marc Fogel Meets President Trump at the White House

Freed Political Prisoner Marc Fogel Welcomes President Trump at the White House

According to a report by RedState, Marc Fogel, who had been sentenced…