Nonprofit charity organizations that received more than $100 million from the federal government to feed and house illegal immigrants released from federal custody at the U.S.-Mexico border failed to adhere to the law and abused funding, according to a federal watchdog investigation.
A Department of Homeland Security Office of Inspector General report released this week found organizations that were given Federal Emergency Management Agency money to respond to the border crisis regularly failed to submit receipts with reimbursement requests and used money on illegal immigrants who should not have received taxpayer funds.
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Recipients “did not always provide the required receipts or documentation for claimed reimbursements,” and “some of the [local recipient organizations] were unable to provide supporting documentation for families and individuals to whom they provided services,” according to the inspector general report.
FEMA was awarded $110 million in the American Rescue Plan of 2021 to disperse among nonprofit groups on the border. At the time of the watchdog’s audit, $80 million had been awarded to groups in Arizona, California, New Mexico, and Texas.
The government watchdog looked at $12.9 million of the awarded money and found “they did not always use the funds consistent with” the guidelines.
Recipients of federal funds were supposed to provide proof of how much money was spent, daily reports of how many immigrants they served, and itemized receipts with proof of payment. More than half of the $12.9 million awarded, $7.4 million, was missing required paperwork.
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In addition, auditors found that groups that did report names and identifying information for the immigrants they served had spent money assisting immigrants who were not lawfully released at the border and allowed to remain in the United States. Instead, immigrants who crossed the border illegally and got away requested assistance from nonprofit groups and in turn received federal money.
The inspector general recommended that FEMA resolve the $7.4 million in questioned costs and implement a risk-based process to better award future federal dollars.
