Homeland Security Secretary Markwayne Mullin has rescinded a controversial spending rule that required his office to personally approve all departmental expenditures over $100,000. The policy, implemented by his predecessor Kristi Noem, was widely criticised for hampering disaster response and recovery efforts by the Federal Emergency Management Agency (FEMA).
The decision marks Mullin's first major policy change since being sworn in last week, following Noem's dismissal by President Donald Trump in March. A DHS spokesperson confirmed the move on Wednesday, stating that Mullin 're-evaluated the contract processes to make sure DHS is serving the American taxpayer efficiently.' The change is expected to ease a spending bottleneck that lawmakers and states said delayed disaster funds, though impacts may be limited until the end of the ongoing DHS shutdown, now in its 46th day.
The International Association of Emergency Managers (IAEM) praised the decision. 'We appreciate Secretary Mullin’s common-sense approach to this matter,' said Josh Morton, IAEM-USA president. The policy had created 'an untenable situation for emergency managers,' Morton added, hindering mitigation and preparedness programmes and putting Americans at increased risk.
Noem's directive, issued last June, required her personal approval for any DHS expenditure over $100,000. Critics said it undermined FEMA, which routinely issues contracts and reimbursements well above that threshold. A Senate committee report found the rule had delayed at least 1,000 FEMA contracts, grants, or disaster reimbursements by September. The policy also faced scrutiny after reports linked it to unstaffed call centres and delays in deploying search and rescue teams during deadly floods in Texas last July.
About $2.2 billion in recovery and mitigation dollars were in the DHS approval queue as of Wednesday, according to FEMA data. Mullin told lawmakers at his confirmation hearing that he would keep the agency 'adequately staffed' after it lost over 2,400 employees last year, and is considering nominees for a permanent FEMA administrator. The agency still lacks a permanent chief, and Trump has repeatedly floated eliminating FEMA entirely.
Michael Coen, FEMA chief of staff under Presidents Obama and Biden, said, 'Hopefully this is a step toward transparency and stability between FEMA and states.' DHS is reviewing other policies across the agency, including pausing the purchase of new warehouses for immigration detention. While lifting the spending rule may help, FEMA still faces a funding impasse, with the Disaster Relief Fund running low at about $3.6 billion. Republican lawmakers signalled on Wednesday that an agreement to end the shutdown could be reached soon.
