FEMA Improper Payment Recovery: Agency Hasn’t Tried To Recoup $643 Million

NEW ORLEANS — The Federal Emergency Management Agency hasn’t tried to recoup about $643 million in improper payments made to victims of Hurricane Katrina and other disasters in the wake of a judge’s order more than three years ago, acc…

NEW ORLEANS — The Federal Emergency Management Agency hasn’t tried to recoup about $643 million in improper payments made to victims of Hurricane Katrina and other disasters in the wake of a judge’s order more than three years ago, according to a government audit issued Monday.

The improper payments have gone uncollected for more than three years because FEMA hasn’t given its final approval to a new process for recovering the money, auditors found in a report by the Department of Homeland Security’s inspector general’s office.

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