The Office of the Inspector General at the Department of Homeland Security said that a FEMA program, created to offset the costs of funeral expenses for COVID-19 victims, is being mismanaged by the agency. 

Specifically, FEMA is being accused of “waste and abuse of taxpayer dollars” by the Office of the Inspector General in a new report issued this week. In it, OIG officials said that their investigation analyzed a portion of completed applications for FEMA’s COVID-19 Funeral Assistance Program. They said the audit found that in more than half of the cases they analyzed, that FEMA had reimbursed applicants for expenses that should not have to be covered. 

FEMA officials are disputing the allegations in the report and said, “FEMA does not agree with the OIG’s interpretation of existing authorities. FEMA has broad authority within the agency’s regulations to determine eligible funeral assistance costs and to determine eligible assistance for applicants.”

There have been relatively few issues with the program since they launched it in 2021. In fact, FEMA is still accepting applications and has not yet identified a deadline to apply for the program.  

Some examples cited in OIG’s report include individual applicants being reimbursed for expenses like more than $1,000 dollars in flowers, $1,300 for a catered reception and costs associated with renting a horse and carriage. 

The Inspector General’s office said the issue isn’t with the applicants, but with FEMA’s current guidelines for the program. OIG says the rules for the program do not follow “well established guidelines” on funeral expenses that can be covered. 

Jaclyn Rothenberg, FEMA’s Public Affairs Director, responded to the claim and said, “In 2021, FEMA published an interim policy that both the Department of Homeland Security and the Office of Management and Budget reviewed and approved. FEMA also worked with Congressional members who were integral to drafting the appropriations authorizing COVID-19 Funeral Assistance.”

The program offers reimbursements of up to $9,000 to cover funeral expenses for a person who has died of a COVID-19.

FEMA lists several expenses that are covered under the program on its website, including funeral services, cremation and a headstone or a casket. The Inspector General’s Office says that FEMA did not, however, give applicants guidelines for what isn’t covered under the program. The report said FEMA’s omission has enabled applicants to submit receipts for items and services, not usually covered by funeral assistance programs, as long as they appear on a funeral home receipt. 

FEMA officials say that, up to this point, they have denied no applicants benefits because of awards issued for other claims. The agency also argues that OIG’s recommendations would change operating procedures, which would limit eligible costs and slow the agency’s ability to review and grant awards to thousands of pending applications.

To date, the COVID-19 Funeral Assistance Program has given out more than $2 billion dollars in assistance. 

The Inspector General’s Office said that FEMA now has 90 days to respond to the report and come up with any corrective actions they plan to take. This is the first time that FEMA has ever offered such a program, simultaneously in all 50 states and the District of Columbia.