Kristi Noem's DHS Exit Leaves Dozens of Contracts Unapproved, Delaying Payments
Noem's DHS Exit Leaves Dozens of Contracts Unapproved

Kristi Noem's Departure from DHS Leaves Contract Backlog Unresolved

Outgoing Secretary of Homeland Security Kristi Noem is set to leave her position with a significant pile of unsigned contracts on her desk, potentially creating a major administrative headache for her successor. According to a report from Axios, Noem has yet to approve dozens of contracts worth $100,000 or more, delaying payments for critical areas including immigration detention centers and disaster relief under the Federal Emergency Management Agency (FEMA).

Backlog Predates Partial Government Shutdown

The backlog of unsigned contracts has existed since before the partial government shutdown that has left the Department of Homeland Security temporarily unfunded. Some vendors have been awaiting payments for projects even prior to this funding crisis. With Noem's official departure quickly approaching, the next DHS leader could inherit what one source described as "a mountain of backed-up contracts and invoices."

"There's a mountain of backed-up contracts and invoices on her desk that the new guy will just have to deal with," a person familiar with the situation told Axios.

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Noem's Controversial $100,000 Approval Policy

Noem implemented a policy requiring her personal approval for any contract worth $100,000 or more, which has reportedly caused significant disruptions. The rule has proved so problematic that some vendors have resorted to billing the department in $99,999 increments to circumvent the approval requirement and receive payments.

Project and funding delays stemming from Noem's policy on $100,000 contracts have been reported for over a year. Those familiar with the situation inside FEMA complained last year that this policy delayed necessary payments to people waiting for government assistance during emergencies.

Border Wall Construction Among Affected Projects

An internal memo outlining border wall progress, obtained by Axios and the Washington Examiner earlier this year, indicated that as of January 27, approximately 102 miles of steel wall and 93 miles of water buoy barriers were awaiting approval from Noem through contracts. However, a DHS spokesperson denied that Noem's signature was holding up the construction.

FEMA Contracting Delays Described as "Giant S***show"

One person familiar with current FEMA contracting delays told Axios that "it's still a giant s***show" in the emergency assistance office. The source warned about long-term consequences, stating: "The ramifications of her tenure are going to be felt for years and years and years and years. We're not really going to know exactly how bad it is until we have a major hurricane that unfortunately impacts someplace in the United States."

Other Payments Also Awaiting Approval

Other payments, such as those to detention facilities, have also been awaiting contract renewals, according to sources. Any upcoming contract renewal delays appear to have been exacerbated by the ongoing partial government shutdown, which has left DHS without funding.

Uncertainty Surrounding Contract Approvals

It remains unclear whether Noem plans to sign off on most or all of the contracts awaiting her signature before her departure. It's also uncertain whether she can legally approve them during the ongoing partial government shutdown that has left her department unfunded.

Noem's Controversial Tenure at DHS

Noem is leaving DHS more than a year after President Donald Trump appointed her to oversee the department. Her tenure has been defined by a chaotic immigration enforcement rollout that led to more than 600,000 deportations, thousands of lawsuits, and three U.S. citizens killed during violent encounters with law enforcement.

Her ousting followed a recent congressional hearing in which Noem contradicted President Trump by claiming he directly signed off on a $220 million advertising campaign. Lawmakers are now investigating the advertising contract to determine whether the outgoing secretary, her senior adviser Corey Lewandowski, or other DHS employees financially benefited from the agreements.

The Independent has reached out to the Department of Homeland Security for comment on the contract backlog situation.

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