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Texas Failed to Spend Millions in Federal Aid for Flood Protection

Texas Failed to Spend Millions in Federal Aid for Flood Protection

CLIMATEWIRE | In the past decade, as extreme weather killed nearly 700 people in Texas, the state relinquished $225 million in federal grant money that it was supposed to spend on protecting residents from disasters, federal records show.
The money had come from a special federal disaster program that's given states billions of dollars for projects such as flood protection, tornado safety and the type of warning systems that could have saved some of the 129 people killed in Texas' recent flash flooding. Texas had rejected two requests from the flooded county for a small portion of the federal money to set up a flood-warning system.
But Texas, like most states, has chosen not to spend a significant chunk of its mitigation grant money. States routinely let the government reclaim unspent money — or let available money go unused for as long as 20 years, according to an analysis of federal records by POLITICO's E&E News.
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In addition to ceding the $225 million, Texas has not spent $505 million of the $820 million — 62 percent — that it got for mitigation projects nearly eight years ago after Hurricane Harvey killed 89 people and caused $160 billion in damage, records show. The funds remain available.
The unspent money highlights a central flaw in the nation's approach to protecting against climate change: The federal government gives states and communities both money and responsibility for disaster protection. Yet states and communities often lack the personnel and expertise to spend it fully.
Since July 2015, the federal Hazard Mitigation Grant Program has showered states with more than $23 billion to protect their counties, neighborhoods and homes against future disaster damage. The grants have been given automatically after each federally declared disaster and are separate from the federal money that pays for disaster cleanup and rebuilding.
But nearly $21 billion of the grant money remains unspent, E&E News found, leaving people vulnerable to the deadly flooding, winds and wildfires that climate change is intensifying. Some of the grant money was awarded in recent years, but most was awarded more than three years ago.
In the same period since 2015, states also relinquished a total of $1.4 billion in mitigation grant funding that had been approved but states never spent.
The figure includes the $225 million that Texas gave up over the past 10 years as the government closed a series of partially spent hazard mitigation grants it had awarded the state since 2001. The grants were worth a total of $850 million, which means Texas did not spend more than a quarter of the money. Most recently, on April 29, Texas ceded $5.7 million of a $13 million mitigation grant it got in 2016.
'It's a lost opportunity to build resilience,' said Peter Gaynor, who ran the Federal Emergency Management Agency from 2019 to 2021. FEMA operates the mitigation grant program.
'What happens time and time again is mitigation money becomes an afterthought,' Gaynor said.
The Texas Division of Emergency Management, which handles the FEMA mitigation grants, did not respond directly to questions about unspent money.
Andrew Mahaleris, a spokesperson for Gov. Greg Abbott (R), said in a statement, "The State continues to disburse HMGP funding as grants are awarded and encourages local officials to apply."
The large amount of unspent hazard mitigation money prompted President Donald Trump in April to stop approving new allocations, a move that angered some state officials.
A FEMA spokesperson said the agency is now helping states 'identify projects and draw down balances in a way that makes the nation more resilient, while also responsibly safeguarding American taxpayer dollars.'
Trump has assailed FEMA since taking office but on Friday offered unusual praise when he visited the damaged area in Texas. 'FEMA has been really headed by some very good people,' Trump said.
Although states had automatically received FEMA grant money after each disaster, spending the money has been excruciating at times. FEMA typically must approve each grant-funded project.
'It's such a cumbersome process,' said David Fogerson, who ran Nevada's emergency management and homeland security agency from 2020 to 2024.
States and communities — or their contractors — must submit detailed plans showing that a project is feasible, complies with environmental and preservation laws and makes sense financially. States, counties and municipalities also must have a written plan — typically a couple of hundred pages and updated every five years — showing its broad strategy to reduce disaster damage.
A Government Accountability Office report in 2021 found that state officials were 'overwhelmingly dissatisfied' with the application process.
'It almost becomes overload when you're trying to manage the disaster and then you're trying to measure how to protect against the next disaster,' Fogerson said.
Nevada has spent only a quarter of the $3.4 million hazard grant it got from FEMA after a wildfire in 2016, records show.
'It's a blessing and a curse,' Fogerson said of the grant money.
Federal funds rarely used for warning systems
Kerr County, Texas, the site of the flash flooding that began July 4, encountered the administrative gantlet in 2016 when it asked the state in 2016 and in 2018 for a small piece of its FEMA mitigation money to establish a flood warning system.
Warning systems are a crucial but low-profile part of worldwide strategies to protect against natural hazards, particularly in places prone to flash flooding, which occurs when sudden, intense precipitation causes rivers to overflow.
Texas officials are scrutinizing the limited warnings that were transmitted as the Guadalupe River surged in the middle of the night and devoured areas including a girls' sleepaway camp where at least 27 campers and counselors were killed.
In Kerrville, Texas, which was at the center of the flash flooding, City Manager Dalton Rice on Saturday pledged 'a full review of the disaster response.'
Trump's staff reductions and proposed budget cuts to the National Weather Service offices have set off their own alarms that inadequate weather alerts will increase the number of disaster-related deaths.
Kerr County's request for grant money was denied in 2016 by the Texas Division of Emergency Management because the county did not have the required mitigation plan.
When the county of 50,000 people in central Texas Hill Country applied again after Hurricane Harvey, the state denied the application after deciding to spend all the grant money in Harvey-damaged counties.
'If localities do not meet federal requirements, they will not be able to access the funding. The State works with applicants to support efforts to bring them into compliance,' said Mahaleris, the spokesperson for Gov. Abbott.
The Texas Legislature will convene a special session July 21 to consider new laws that would improve warning systems in flood-prone areas.
'We're going to work on every single solution to make sure things like this don't happen,' Abbott said Friday.
Despite the importance of warning systems and their moderate cost, states have spent only a tiny amount of their mitigation grants installing them, E&E News' analysis of federal records shows.
The largest chunk of grant money has gone to flood protection, usually for individual properties. Roughly $4.5 billion has been given to homeowners in flood-prone coastal or riverside areas to elevate their house above flood level or to buy the property, demolish the home and leave the land vacant, E&E News' analysis shows. Each project costs federal taxpayers roughly $250,000.
By contrast, states have spent just $275 million on warning systems.
'The cost of warning systems proportionately to other flood mitigation activities is relatively cheaper,' said Chad Berginnis, executive director of the Association of State Floodplain Managers. 'For a small community, it could be a siren and a gauging apparatus that's tied to that. That could end up being cheaper than one buyout.'
Low-income nations such as Bangladesh have spent heavily on flood-warning systems, said Sarah Labowitz, a senior fellow at the Carnegie Endowment for International Peace who studies disasters.
'They're doing that without a lot of resources,' Labowitz said. 'We should be learning from other places and investing in early warning systems.'
But one problem with using FEMA mitigation money for warning systems is that their benefits are nearly impossible to quantify, Berginnis said.
FEMA generally requires proof that a mitigation project funded with its grants has a positive benefit-cost ratio. Although the agency makes exceptions for some projects such as warning systems, FEMA requires grant-funded warning systems to be part of a 'planned, adopted, and exercised risk reduction plan.'
Berginnis acknowledged that states struggle to spend their mitigation grants. But he opposes Trump's recent decisions not to approve new grants.
'Mitigation happens when people are receptive to doing mitigation, and they are the most receptive to doing it in the immediate aftermath to do it, period. We are missing a key opportunity to do that,' Berginnis said.
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Just how much has DOGE exaggerated its numbers? Now we have receipts.
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Politico

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Just how much has DOGE exaggerated its numbers? Now we have receipts.

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Over this period, agencies have issued clawbacks, or deobligations, on less than 30 percent of those awards, recovering $1.4 billion in funds. Even if agencies immediately recovered all unspent funds from these 10,100 contracts, the total savings would amount to less than 40 percent of what DOGE has taken credit for. And agencies would still be on the hook to spend those dollars unless Congress or the president intervened, though some in the administration have said they could simply spend less. Roughly 2,400 cancellations on DOGE's termination list through July cannot be independently verified. Some of these cancellations were simply too recent to show up in public records, but most had their identifying information redacted by DOGE, which has often labeled those entries as 'unavailable for legal reasons.' DOGE's list is filled with exaggerated savings claims across the federal government. Some contracts included on DOGE's termination list have only been modified and not canceled; others have been removed from the list without explanation. Under the VA, for example, DOGE's page reported savings of $932 million from contracts canceled though June, including awards for a cancer registry, suicide prevention services and other health care support. Federal records show the VA recovered just $132 million from these awards, or less than 15 percent of what DOGE claimed, and that the VA reinstated the contract for suicide prevention support. These contracts were canceled because VA staff could perform the necessary work in-house, VA press secretary Pete Kasperowicz wrote in an email. The VA, he said, has avoided up to $27 billion in costs from reviewing and downsizing thousands of contracts 'to ensure each one of them benefits Veterans and is a good use of taxpayers' money.' 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DOGE's calculations, for instance, don't account for expenses that come from ending contracts prematurely, like payments for outstanding leases, subcontractors, or work already performed, which can add up quickly. 'There's no certainty because we haven't finished understanding termination costs of anything,' Tillipman said. That can take years to untangle. Until then, 'we don't know any of it,' she said, referring to savings. Plus, even drafting a contract costs money. 'You have spent multiple months or even years and many people's time getting to the best negotiated terms for the public's interest,' said Cristin Dorgelo, a former senior adviser in the Office of Management and Budget during the Biden administration. By law, agencies are still required to spend any funds Congress appropriated to them, including money they claw back from individual projects. 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Canceling the agreement, it said, would translate to more than $215 million in annual savings for taxpayers. By the time the contract was added to the DOGE termination list, that savings claim skyrocketed to $2.9 billion. DOGE's math was simple: It took the difference between the contract's $3.3 billion ceiling and the amount that had been formally awarded, or obligated — $428 million — and called it savings. But HHS and its Office of Refugee Resettlement were not on track to spend anywhere close to the contract's ceiling. That ceiling represented what it would cost the government to fund the Pecos center at full capacity — 3,000 children — for 365 days a year, for five years. If the center was not full, the government would pay less, according to four people familiar with the contract who were granted anonymity for fear of retribution. But the Pecos campus had been empty since February 2024. Instead, an $18 million price tag per month covered operating costs to keep the center ready to receive children with just two weeks' notice — an option the refugee resettlement office invoked at least twice during the lifetime of the contract. In total, the resettlement office had committed to pay no more than $428 million in rental, maintenance, security and IT expenses for the 80-acre campus through November, the four people said. At that time, the contract would be reviewed for renewal or cancellation. 'The bottom line is that the contract already had built in savings and efficiency into the way it was by the way it was structured,' one of the four people said. The most the government could save by canceling the contract for the Pecos campus before the November decision date would be about $126 million, or the amount the contractor, Family Endeavors, had yet to withdraw for upcoming monthly expenses. That's 4 percent of DOGE's $2.9 billion in claimed savings. Family Endeavors referred POLITICO to a written statement responding to the contract's cancellation that said the group's mission of 'serving vulnerable communities' is ongoing. To date, no funds have been returned to the Treasury from canceling this contract. ORR has not recalled funds because it anticipates future termination costs, according to the four people familiar with the contract. By the time that happens, actual savings from canceling this contract will be even less. 'The Biden Administration wasted more than $1.8 billion dollars on a facility to house illegal aliens, which has not been used in the last year,' HHS director of communications Andrew G. Nixon wrote in an email. 'Under Secretary [Robert F.] Kennedy's leadership, HHS is ensuring that taxpayer dollars are being spent wisely and not in support of illegal immigration.' The Interior Department, which administers the contract, referred questions to HHS. DOGE also claimed $166 million in savings from canceling a contract that plays a central role in the Energy Department's ability to keep household appliances like refrigerators and microwaves as efficient as possible. The Energy Department is required by law to set efficiency standards on roughly 70 products and appliances in order to reduce energy demand. Under an eight-year contract DOGE claims to have canceled, consulting firm Guidehouse Inc. provided the analysis used to set these standards. The Energy Department said the contract had not been canceled, but reduced, saying it achieved 60 percent 'in significant savings for the American taxpayer.' DOGE posted the contract on its list of terminations a few weeks before the agency repealed 20 appliance efficiency standards in May without any supporting evidence, said Emily Hammond, who served as deputy general counsel at the Energy Department during the Biden administration. 'DOE seems to be abnegating its duties,' Hammond said. 'Congress has required the agency to do its homework, and it doesn't appear to be doing that homework.' While DOGE claims $166 million in savings from terminating the agreement, federal spending records show the Energy Department has recalled $0 and removed just under $100 million from the contract's ceiling value. At most, that translates to $0 in savings to date and around $100 million in potentially avoided future costs. The irony, Hammond said, is that the efficiency standards Guidehouse helped to create save billions of dollars for consumers. 'The cost of developing them is quite small in contrast to the enormous impact,' Hammond said. The Energy Department has said dropping the regulations will lower costs for consumers, but efficiency standards saved households and businesses $105 billion in 2024, according to the department's own data — a far cry from DOGE's claimed $166 million in savings. Guidehouse declined to comment on the status of this contract. Holes in the wall The future of the 'wall of receipts' and of the organization remains uncertain. Updates to DOGE's public accounting page have become more infrequent since Musk's exit in May. The page's three most recent updates represented the longest periods of silence since the site launched in February. It was stagnant for most of June and went nearly four weeks before posting new terminations in July. Another 17 days passed before its latest update in August. The same is true of Trump and Musk's relationship. After leaving DOGE, Musk declared war on Trump's megabill, which the president signed into law on the Fourth of July. The two took their breakup to X, lobbing insults on the world's stage. 'What the heck was the point of @DOGE if [Trump]'s just going to increase the debt by $5 trillion??,' Musk wrote on X in July, referring to the deficit increase. The law will increase the national debt by $3.4 trillion, according to the Congressional Budget Office. Now, Musk has committed to starting a third party with the same goal as DOGE: reduce government spending. METHODOLOGY POLITICO relied on public federal spending records from USA Spending and the Federal Procurement Data System as well as DOGE's list of terminated contracts available on its ' wall of receipts ' for this report. (DOGE's website says its list of terminations are a subset of all canceled awards, but its ledger remains the only public log of its activity.) For this analysis, POLITICO excluded any contracts with a termination date within one month of its July 26 update, as DOGE cautions on its site that 'FPDS posting of the contract termination notices can have up to a 1 month lag.' POLITICO also excluded any contract terminations without a valid link to the Federal Procurement Data System, which contains additional identifying information POLITICO used to match each contract termination with federal spending records and was necessary for this analysis. When available, old versions of the DOGE data were used for USAID contract cancellations that were stripped of identifying information on the DOGE website due to 'legal reasons' without further explanation. Among contract terminations where savings could be verified, POLITICO compiled every transaction that has taken place between Jan. 20 and July 26, the date of DOGE's second-most recent update, in order to assess savings created by DOGE so far. 'Savings' represents dollars put back into the hands of agencies for later use. Agencies are required to spend dollars appropriated to them by Congress. Contracts added, removed or modified in DOGE's Aug. 12 data are not part of this analysis. Only 30 percent of the contracts POLITICO reviewed had deobligations, or money returned to the agency. The remainder either had no transaction activity during the Trump administration through July 26 or had only positive obligations during that period. Each contract has a few possible states: At least one reduction in spending: POLITICO considered all deobligations reflective of DOGE's savings to date. In some cases, agencies added funds to a contract after a deobligation or reduction in ceiling value, effectively reducing the amount saved. POLITICO counted all activity on a contract after the first deobligation or reduction in ceiling value to show the net total of dollars saved or ceiling value reduced, respectively. No changes: While DOGE says it has terminated the contract, there has been no change, negative or positive, to the amount the government has committed to spending. These contracts result in $0 in government savings to date by POLITICO's accounting. Only new spending: There are many instances where contracts on DOGE's termination list showed additional spending during the search period and no deobligations. POLITICO did not count these dollars against DOGE's savings tally (unless that positive obligation happened after a negative obligation). This is to provide additional accounting for lags in DOGE actions appearing in public accounting records.

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The one issue where ‘26 Dems all agree
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Politico

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Mahan, who backed Tordillos in a June special election, has irked Bay Area progressives and labor unions in recent years with his headline-grabbing moves, including a plan to tie the raises of some city employees to performance metrics and his vocal support for a ballot measure to increase prison sentences for drug- and theft-related offenses. But Tordillos' win provides Mahan with a firewall against his critics on the left. The new councilmember defeated a progressive, labor-backed candidate, Gabby Chavez-Lopez, by double digits in an expensive runoff contest. Mahan, in a recent interview with Playbook, seemed to bask in the outcome: 'Culturally, (Tordillos) and I are part of what … is going to be a majority bloc that focuses on what measurably improves outcomes, versus previous ideological commitments.' He added, 'Two-thirds of the electorate is not for the hyper-ideological progressive' approach to city government. CLIMATE AND ENERGY DEAL OR NO DEAL — The Trump administration is taking away California's backstop Trump-proofing tactics to protect its climate regulations: its voluntary deals with industry. On Tuesday, the FTC announced an agreement with four heavy-duty truck manufacturers and their trade association, declaring California's agreement with them 'unenforceable.' Read more in last night's edition of California Climate. TOP TALKERS LA CORRUPTION CASE — Prosecutors filed additional charges against Los Angeles City Councilmember Curren Price this week, the LA Times reports. Price had already been charged with 10 felony counts, including grand theft and perjury over allegations that he voted to approve projects that would financially benefit his wife, Del Richardson. Her consulting firm allegedly received more $150,000 in payments from developers before he voted on their projects. Price has denied any wrongdoing. Michael Schafler, Price's attorney, called the charges 'nothing more than an attempt to pile on to a weak case.' Price told the Times that 'there is no evidence whatsoever that Councilmember Price was aware of the alleged conflicts when he voted for the agenda items.' FEINSTEIN'S TREASURES — Dozens of items from the estate of the late Sen. Dianne Feinstein and her husband, the late financier Richard Blum, are going up for auction later this week. The collection included antique European furniture, opulent jewelry, historic artifacts, rare paintings and Persian and Tibetan rugs that once decorated the couple's former mansion on Billionaires' Row in San Francisco. Highlights of the collection, as SF Gate reports: 'a photograph of Feinstein posing with Queen Elizabeth II"; 'a German carved chest circa 1740 (valued from $800 to $1,200)"; and 'a Louis XV-style writing desk (valued from $500 to $700).' The most expensive item is a diamond and platinum solitaire ring valued from $40,000 to $60,000. AROUND THE STATE — Police departments eager to fill vacant jobs are increasingly hiring officers who were previously fired or dismissed from other agencies. (San Francisco Chronicle) — Late-night host Jimmy Kimmel, who Trump recently suggested will have his show canceled next, revealed he recently secured Italian citizenship. (CNN) — Treacherous rip currents are pummeling beaches in San Diego County, with swells reaching 6 to 7 feet in some locations. (The San Diego Union-Tribune) — Trump's big spending bill includes a surprise boost for affordable housing developers in California: an increase to the Low-Income Housing Tax Credit. (CalMatters) PLAYBOOKERS SPOTTED: CARUSO MAKING ROUNDS — LA mega developer Rick Caruso, who's weighing a run for governor, was in Sacramento for a dinner and meetings — including a chat with POLITICO's Christopher Cadelago. Earlier in the day, he met at his home with Piers Morgan. STORK ALERT — J. Baylor Myers, VP of corporate development at BitGo and a former top aide to Treasury Secretary Steven Mnuchin in the first Trump administration, and Dakota Myers, a paralegal in San Francisco, on Aug. 4 welcomed John Baylor Myers Jr, who came in at 8 pounds and 13 ounces. Pic … Another pic PEOPLE MOVES — Ivy Brittain is now regional director, state government affairs at the Plastics Industry Association. She was previously legislative affairs director at the Northern California Water Association. — Seamus Garrity is joining Mercury Public Affairs as a managing director. He will continue to work between LA and Sacramento and was previously a partner at Lighthouse Public Affairs. BIRTHDAYS — Margot Roosevelt … Chris Dhanaraj ... Emily Myerson … former Federal Reserve Chair Janet Yellen … BELATED B-DAY WISHES — (was Sunday): Ajita Talwalker Menon at Calbright College WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO's California Playbook. You can now submit a shout-out using this Google form.

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