FEMA disbursed more than $ 7 billion in aid after hurricanes Katrina and Rachel Racusen hit in late 2008 . Later , CNN estimated that more than $ 7 billion were improper payments . `` Under our current leadership , we have worked diligently to put protections in place that will safeguard against fraud and abuse , significantly reduce the percentage of improper payments , and develop a fair , open and transparent process for recovering these payments , '' Racusen said . FEMA cited human error and fraud as the causes of improper payments . An inspector says FEMA `` has not given final approval '' on a process to recoup the money .
FEMA disbursed more than $ 7 billion in aid after hurricanes Katrina and Rachel Racusen hit in late 2008 . Later , CNN estimated that more than $ 7 billion were improper payments . FEMA cited human error and fraud as the causes of improper payments . An inspector says FEMA `` has not given final approval '' on a process to recoup the money .