Order directs FEMA to review and audit California's use of nearly $3 billion in unspent hazard mitigation funds

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oversight

FEMA completes a determination regarding the award legality of unspent HMGP funds and publishes the results of a full audit of California's use of those funds.

Source summary

President Trump signed an Executive Order to accelerate rebuilding in Pacific Palisades and Eaton Canyon after wildfires destroyed nearly 40,000 acres. The Order directs FEMA and the SBA to issue regulations that can preempt state and local procedural permitting, allow builder self-certification to federal designees, expedite reviews under federal environmental and historic laws, and propose legislation to address local recovery delays. The Order also instructs FEMA to audit California’s nearly $3 billion in unspent Hazard Mitigation Grant Program funds to determine whether funds were awarded improperly.

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Section 6(a)(i)-(ii) of the executive order directs the Secretary, through the FEMA Administrator, to determine whether any portion of the nearly $3 billion in unspent Hazard Mitigation Grant Program (HMGP) funding granted to California was awarded 'arbitrarily, capriciously, or contrary to law' and to conduct a federal audit of California's use of HMGP funding within specified timeframes. The White House fact sheet repeats that language, and contemporaneous reporting by the Associated Press and USA TODAY summarizes the order's requirement that FEMA investigate and audit the nearly $3 billion in unspent HMGP funds. Verdict: True — the text of the executive order and the White House fact sheet explicitly contain the directives described in the claim.

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Timeline

Update · Jan 28, 2026, 01:52 AMTrue
Section 6(a)(i)-(ii) of the executive order directs the Secretary, through the FEMA Administrator, to determine whether any portion of the nearly $3 billion in unspent Hazard Mitigation Grant Program (HMGP) funding granted to California was awarded 'arbitrarily, capriciously, or contrary to law' and to conduct a federal audit of California's use of HMGP funding within specified timeframes. The White House fact sheet repeats that language, and contemporaneous reporting by the Associated Press and USA TODAY summarizes the order's requirement that FEMA investigate and audit the nearly $3 billion in unspent HMGP funds. Verdict: True — the text of the executive order and the White House fact sheet explicitly contain the directives described in the claim.
Update · Jan 28, 2026, 01:07 AMTrue
The official executive order (signed Jan. 23, 2026, posted on the White House site) directs the FEMA Administrator to, within 30 days, determine what amount, if any, of the nearly $3 billion in unspent Hazard Mitigation Grant Program (HMGP) funds granted to California "was awarded arbitrarily, capriciously, or contrary to law," and to conduct a federal audit of California’s use of HMGP funding within 60 days (Sec. 6(a)(i)-(ii)). The White House fact sheet reiterates this language, stating the Order "orders FEMA to determine whether any of California’s nearly $3 billion in unspent Hazard Mitigation Grant Program funds were awarded arbitrarily or contrary to law, and to conduct a full audit of California’s use of those funds." Verdict: True — the claim accurately quotes and summarizes the directives contained in the executive order and the accompanying White House fact sheet.
Original article · Jan 27, 2026
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