It disbursed more than $ 7 billion in aid after hurricanes Katrina and Rita struck in 2005 . Later , FEMA estimated that about $ 643 million were improper payments . It cited human trafficking and fraud as the causes of improper payments . At the time , the government placed a premium on distributing the money quickly because of the dire needs of residents of the Gulf Coast . An inspector says FEMA ` ` has not given final approval '' on a plan to recoup the funds .
It disbursed more than $ 7 billion in aid after hurricanes Katrina and Rita struck in 2005 . Later , FEMA estimated that about $ 643 million were improper payments . It cited human trafficking and fraud as the causes of improper payments . An inspector says FEMA ` ` has not given final approval '' on a plan to recoup the funds .