Homeland Security Secretary Markwayne Mullin has rescinded a controversial spending rule that required his office to personally approve all Department of Homeland Security expenditures over $100,000, reversing a policy that drew widespread criticism for slowing disaster response efforts.
The directive, implemented last year by former secretary Kristi Noem, had been blamed by lawmakers and emergency officials for creating significant delays at the Federal Emergency Management Agency, particularly in issuing contracts, grants, and reimbursements tied to disaster recovery.
A spokesperson for the Department of Homeland Security confirmed Wednesday that Mullin formally rescinded the rule, saying the secretary had “re-evaluated the contract processes to make sure DHS is serving the American taxpayer efficiently.” The move was first reported by CBS News.
Mullin, who was sworn in last week after President Donald Trump fired Noem in March, is expected to ease a backlog that has affected disaster aid distribution across the country. However, officials cautioned that the impact of the policy change may not be immediately felt due to the ongoing DHS shutdown, now in its 46th day.
The rule required the secretary’s personal sign-off on any DHS spending above $100,000 — a threshold routinely exceeded in FEMA’s work responding to natural disasters and managing recovery efforts. Emergency management groups said the requirement created a bottleneck that slowed critical operations.
“This created an untenable situation for emergency managers,” said Josh Morton, president of the International Association of Emergency Managers. He added that the policy hindered preparedness and mitigation programs, “putting Americans at increased risk from disasters.”
A report released by Democratic members of the Senate Homeland Security and Governmental Affairs Committee found that by September, the approval requirement had delayed at least 1,000 FEMA contracts, grants, or reimbursements.
The policy also came under scrutiny following reports that linked it to operational issues during recent disasters, including unstaffed FEMA call centers and delays in deploying Urban Search and Rescue teams during deadly floods in Texas last July.
Criticism came from both parties. Republican Sen. Thom Tillis of North Carolina, whose state is still recovering from Hurricane Helene in 2024, sharply rebuked Noem during a Senate hearing shortly before her dismissal.
“You’ve failed at FEMA,” Tillis said at the time.
According to FEMA data reviewed by The Associated Press, approximately $2.2 billion in recovery and mitigation funding remained in the DHS approval queue as of Wednesday.
Mullin had signaled during his March confirmation hearing that he intended to stabilize FEMA after a turbulent period. The agency lost more than 2,400 employees last year and currently does not have a permanent administrator.
“It’s got a great mission, and I think people at FEMA want to do their job,” Mullin told lawmakers, adding that he would ensure the agency is “adequately staffed.”
The policy reversal is part of a broader review of DHS operations under Mullin’s leadership. The department has also paused the purchase of new immigration detention warehouses as it reassesses contracts approved during Noem’s tenure.
Still, challenges remain.
The ongoing DHS funding impasse — now the longest government shutdown in U.S. history — continues to constrain the agency’s operations. While FEMA’s disaster response is funded through a non-lapsing Disaster Relief Fund, officials have warned that those resources are running low, with about $3.6 billion remaining.
Lawmakers are currently negotiating a funding agreement that would add more than $26 billion to the disaster fund, and Republican leaders indicated Wednesday that a deal to end the shutdown could be reached in the coming days.
For now, Mullin’s decision to eliminate the spending approval rule marks an early and significant shift in DHS policy — one aimed at restoring speed and flexibility to disaster response, even as broader funding challenges persist.
