Full Breakdown
DHS Rescinds Approval Rule to Streamline FEMA Operations
4/2/2026, 7:30:50 AM
Major Policy Change by Homeland Security Secretary
On March 31, 2026, Homeland Security Secretary Markwayne Mullin rescinded a controversial rule that required personal approval from the Secretary for any Department of Homeland Security (DHS) expenditure exceeding $100,000. This policy, implemented by former Secretary Kristi Noem, faced significant criticism for hindering the Federal Emergency Management Agency's (FEMA) ability to respond effectively to disasters. Mullin's decision marks his first major action since taking office, following Noem's dismissal by President Donald Trump earlier in March.
Impacts on FEMA and Disaster Response
The rescinded rule had been criticized for creating a bottleneck in FEMA's operations, delaying at least 1,000 contracts, grants, or reimbursements by September 2025, according to a report from Democratic members of the Senate Homeland Security and Governmental Affairs Committee. The policy was linked to operational failures, including unstaffed call centers and delays in deploying FEMA Urban Search and Rescue teams during severe flooding in Texas in July 2025. Critics, including Republican Senator Thom Tillis of North Carolina, expressed frustration over the rule's impact on disaster recovery efforts, stating, “You’ve failed at FEMA.”
Mullin's action is expected to streamline the contracting process, allowing for more efficient allocation of disaster relief funds. A DHS spokesperson noted that Mullin aimed to ensure that DHS serves the American taxpayer effectively. The International Association of Emergency Managers welcomed the decision, with President Josh Morton stating, “We appreciate Secretary Mullin’s common-sense approach to this matter.”
Ongoing Challenges Amid DHS Shutdown
Despite the positive reception of Mullin's decision, FEMA's operations remain constrained by the ongoing DHS shutdown, which has lasted for 46 days. Approximately $2.2 billion in recovery and mitigation funds were still awaiting approval as of the announcement. While FEMA's disaster response activities are funded through a non-lapsing Disaster Relief Fund, concerns have been raised about the dwindling resources, with only about $3.6 billion remaining.
Mullin has indicated plans to maintain adequate staffing levels at FEMA, which lost over 2,400 employees in the previous year, and is actively considering nominees for a permanent FEMA administrator. However, the agency's ability to expedite reimbursements to states, tribes, and territories will depend on resolving the funding impasse.
Criticism of FEMA's Effectiveness
Former FEMA Chief of Staff Michael Coen remarked on the potential for improved transparency and stability between FEMA and state governments, expressing cautious optimism about Mullin's leadership. However, Trump has previously suggested eliminating FEMA, citing its high costs and perceived inefficiencies. As discussions continue regarding the DHS appropriations bill, which would allocate over $26 billion to the Disaster Relief Fund, Republican lawmakers have indicated that an agreement to end the shutdown may be forthcoming.
Verbatim Quotes
- “You’ve failed at FEMA,” — Senator Thom Tillis, North Carolina
- “Hopefully this a step toward transparency and stability between FEMA and states.” — Michael Coen, Former FEMA Chief of Staff
This policy change by Secretary Mullin represents a significant shift in FEMA's operational framework, aiming to enhance disaster response capabilities while navigating the challenges posed by the ongoing government shutdown.
