FEMA disbursed more than $ 7 billion in aid after hurricanes Katrina and Rita hit in 2005 . Later , FEMA estimated that about $ 643 million were improper payments . Comment: In a letter to FEMA Administrator Craig Fugate , Inspector General Richard Skinner wrote that a federal court in 2008 ordered FEMA to change its process for recovering the money . 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 Rita hit in 2005 . Later , FEMA estimated that about $ 643 million were improper payments . Comment: An inspector says FEMA `` has not given final approval '' on a process to recoup the money .