Kristi Noem's DHS contract crackdown spurs use of $1 loophole

 November 22, 2025

Homeland Security Secretary Kristi Noem’s bold move to personally oversee big-ticket contracts has birthed a bureaucratic dodge that’s as clever as it is frustrating.

Since June, Noem’s initiative to scrutinize every Department of Homeland Security (DHS) contract exceeding $100,000 has led to a peculiar workaround -- awarding deals just barely under the limit, between $99,999 and $99,999.99, while saving a reported $10.7 billion since August, though at the cost of delays in critical operations like FEMA recovery efforts, as Axios reports.

Back in June, Noem threw down the gauntlet, declaring she’d personally vet every DHS contract over $100,000 to ensure taxpayer money isn’t squandered on bloated deals.

Noem's Bold Oversight Plan Unveiled

Fast forward to August, and the results are eyebrow-raising -- DHS has inked 11 contracts valued just a hair under the threshold, a stark contrast to only seven such deals in the prior decade, according to the Project of Government Oversight.

Components like Immigration and Customs Enforcement, the Secret Service, and Border Patrol have jumped on this bandwagon, sliding contracts in at figures like $99,999.96 for chemical gear or $99,999.99 for ATVs.

Even heavy-hitter contractor Palantir snagged a payment of $99,999.99 in October for immigration paperwork services, proving no one’s above playing this penny-pinching game.

Contracts Slip Under $100,000 Threshold

Now, let’s talk savings -- DHS boasts a whopping $10.7 billion saved since August, a figure from their own press release that sounds like a win for fiscal conservatives everywhere.

But here’s the rub: this nickel-and-dime strategy might be costing us in ways that matter more than money, with routine and mission-critical work grinding to a halt across DHS agencies.

A New York Times report highlighted how these delays are stalling everything from basic operational needs to urgent FEMA recovery spending, leaving communities in limbo after disasters.

Delays Hamper Critical DHS Operations

Lawmakers on both sides of the aisle are sounding alarms, worried that the red tape is strangling DHS’s ability to function when it’s needed most.

Rep. Mark Amodei (R-NV) who chairs the House Appropriations subcommittee overseeing DHS, didn’t mince words: “The concerns we've heard are that they're not getting processed in a timely manner for the stuff that's not controversial,” he told Axios in September.

Amodei added, “Hey everyone is happy you want to review them, but whatever the system is needs to take that into account.” Well, Congressman, if the system means shaving a dollar off to dodge oversight, we’ve got a loophole bigger than a border gap.

Lawmakers Voice Frustration Over Delays

DHS spokesperson Tricia McLaughlin tried to downplay the drama, telling the Project of Government Oversight, “These contracts were for routine operational needs.” Routine, sure, but when Border Patrol’s chemical equipment or Secret Service’s ATVs are stuck in limbo, “routine” starts looking pretty urgent.

Look, Noem’s heart is in the right place -- holding the line on spending is a core conservative value, especially when progressive policies often balloon budgets without a second thought. But when a $1 workaround clogs up the gears of national security and disaster response, it’s time to rethink the playbook.

Taxpayers deserve accountability without sacrificing safety, and while saving $10.7 billion is a feather in Noem’s cap, DHS needs a fix that doesn’t let contracts slip through on a technicality. Let’s applaud the intent, but demand a system where oversight doesn’t mean paralysis—because America can’t afford to wait.

DON'T WAIT.

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