GAO Finds Trump Administration Illegally Withheld FEMA Grants Affecting Homeless and Disaster Systems

The Trump administration has been found by the Government Accountability Office (GAO) to have violated the Impoundment Control Act by illegally withholding Federal Emergency Management Agency (FEMA) grants intended for programs supporting homelessness, migrant services, and emergency alert systems. This marks at least the seventh time in recent months that the administration has been accused of unlawfully impounding federal funds, undermining congressionally approved appropriations. Senator Patty Murray criticized these actions as lawless and harmful to public safety, urging for full release of the withheld funds. The administration's broader pattern of delaying, canceling, or clawing back funding extends beyond FEMA, affecting a wide range of government programs and raising serious concerns over congressional authority and federal budget processes. Newly released data reveal that by mid-2025, the administration was nearly $26 billion behind expected spending commitments, with deliberate targeting of certain programs where deep cuts had been proposed. These tactics have escalated tensions around federal spending and contributed to the risk of government shutdown amid ongoing budget negotiations.