In his first major policy reversal since taking office, Homeland Security Secretary Markwayne Mullin has formally rescinded a contentious spending rule implemented by his predecessor, Kristi Noem. The directive, which required the Secretary's personal approval for all Department of Homeland Security expenditures exceeding $100,000, had been widely condemned for creating significant delays in federal disaster response and recovery operations.
First Major Action by New DHS Leader
Secretary Mullin, who was sworn in just last week, made the decision to eliminate the approval requirement on Wednesday, according to a Department of Homeland Security spokesperson. The spokesperson confirmed to The Associated Press that Mullin had "re-evaluated the contract processes to make sure DHS is serving the American taxpayer efficiently." This marks the inaugural substantive policy change enacted by the new Homeland Security leader following the dismissal of Kristi Noem by President Donald Trump in March.
Relief for Emergency Management Community
The International Association of Emergency Managers immediately praised Secretary Mullin's decisive action. "We appreciate Secretary Mullin's common-sense approach to this matter, and we look forward to working with him," stated Josh Morton, president of IAEM-USA. Morton had previously characterized the approval rule as creating "an untenable situation for emergency managers" that established dangerous bottlenecks hindering mitigation and preparedness programs, thereby "putting Americans at increased risk from disasters."
Originally implemented by Kristi Noem in June of last year, the policy mandated her personal authorization for any DHS expenditure over $100,000. Critics argued this requirement particularly undermined the Federal Emergency Management Agency, an organization that routinely processes contracts and reimbursements far exceeding that threshold in its vital work preparing for and responding to natural and manmade disasters across the United States.
Documented Delays and Operational Impacts
A recently released report by Democratic members of the Senate Homeland Security and Governmental Affairs Committee revealed that the approval rule had delayed at least 1,000 FEMA contracts, grants, or disaster reimbursements by September. The policy faced intense scrutiny following news reports linking it to operational failures, including unstaffed call centers and delays in deploying FEMA Urban Search and Rescue teams to Texas during deadly floods last July.
The directive drew sharp criticism from state officials and lawmakers, most notably Republican Senator Thom Tillis of North Carolina. Tillis, whose state continues to recover from the devastation of Hurricane Helene in 2024, confronted Noem directly at a Senate hearing the day before her dismissal, stating bluntly, "You've failed at FEMA."
Financial Backlog and Shutdown Complications
According to FEMA data reviewed by The Associated Press, approximately $2.2 billion in recovery and mitigation dollars remained stuck in the DHS approval queue as of Wednesday. However, officials caution that lifting the spending approval rule will not automatically trigger a rapid flow of FEMA reimbursements to states, tribes, and territories. The agency remains significantly impacted by the ongoing DHS funding impasse, now the longest government shutdown in U.S. history, currently in its 46th day.
While FEMA disaster response and recovery activities are funded through a non-lapsing Disaster Relief Fund, that resource is dwindling. A FEMA official warned lawmakers during a House hearing last week that only about $3.6 billion remains in the fund. The pending DHS appropriations bill would allocate just over $26 billion to replenish it. Republican lawmakers indicated on Wednesday that an agreement to end the shutdown could potentially be reached within the coming days.
Broader Agency Review Underway
The Department of Homeland Security is conducting a comprehensive review of other policies implemented across the agency under the previous administration. This week, DHS paused the purchase of new warehouses for immigration detention as it examines contracts signed during Noem's tenure. Secretary Mullin has signaled his commitment to stabilizing FEMA, telling lawmakers during his March confirmation hearing that he would keep the agency "adequately staffed" following the loss of over 2,400 employees last year. He also indicated he was already considering nominees for a permanent FEMA administrator, a position the agency has lacked.
Michael Coen, who served as FEMA chief of staff during the Obama and Biden administrations, expressed cautious optimism about the policy change: "Hopefully this is a step toward transparency and stability between FEMA and states." The decision aligns with Mullin's earlier testimony, where he acknowledged FEMA's "great mission" and sparked hope that he would ease the tumult experienced at the agency under his predecessor's leadership.
President Trump has repeatedly suggested eliminating FEMA, asserting as recently as Tuesday that the agency is "very expensive and it really doesn't get the job done." Against this political backdrop, Secretary Mullin's move to rescind the spending approval rule represents a significant operational shift aimed at improving the efficiency of federal disaster response mechanisms.
