The Government Accountability Office reported that FEMA obligated more than $10 billion on contracts from fiscal years 2018 through 2023, primarily for services such as housing inspections and disaster response, and found that oversight of those contracts needs improvement, according to the GAO report published in 2025. The findings come as DHS has drafted plans to cut FEMA's workforce by more than half and the Trump administration has signaled it may shift disaster response authority to individual states.
Operator takeaway
If disaster contracting fragments from one federal agency to 50 state offices, every towing operator with a FEMA relationship needs to identify which state agency will hold the contracts and at what rates.