Economy June 3, 2026 12:14 PM

DHS Moves to Void Majority of Unfinalized Contracts from Noem Tenure

New secretary says most pending deals initiated under Kristi Noem have been cancelled after congressional and watchdog scrutiny

By Derek Hwang

Homeland Security Secretary Markwayne Mullin told lawmakers his department has rescinded most pending contracts that were initiated under former Secretary Kristi Noem, following congressional concerns and an internal Office of Inspector General review. Mullin said finalized agreements remain difficult to unwind, while the inspector general continues multiple investigations.

DHS Moves to Void Majority of Unfinalized Contracts from Noem Tenure

Key Points

  • DHS has cancelled most pending, unsigned contracts initiated under former Secretary Kristi Noem - impacts government procurement and public-sector contracting practices.
  • Finalized contracts are difficult to terminate, leaving completed agreements intact while the department focuses on unsigned procurements - relevant to vendors and legal counsel involved in federal contracting.
  • Multiple active investigations by the DHS Office of Inspector General and congressional oversight hearings continue to shape the department's contract review process - affecting transparency and oversight in federal spending.

Secretary of Homeland Security Markwayne Mullin told members of Congress on Wednesday that the department has cancelled most of the contracts that had been initiated under Kristi Noem but had not yet been signed. The action follows bipartisan concern in Congress and an internal watchdog review into the contracting practices pursued during Noem's brief tenure.

Appearing before the U.S. House Homeland Security Committee, Mullin said the department reviewed outstanding procurements that had not reached final execution and "did go through and cancel most of those." He characterized the effort as part of a broader unwinding of contracting procedures put in place under Noem that had attracted scrutiny from lawmakers on both sides of the aisle.

President Donald Trump removed Noem from her post in March amid declining public support for his immigration policies and mounting unease among legislators - including Republicans - about sizable contracts that were awarded outside customary procurement channels. In the days prior to her dismissal, Noem faced intense questioning from lawmakers over a $220 million advertising contract that government officials say was awarded to firms with Republican ties.

Noem defended that award at the time, saying it had been handled through competitive means and that political appointees were not involved. In her words, the process was "All done correctly, all done legally." Following her departure from DHS, Noem has been serving as a special envoy at the State Department assigned to the Shield of the Americas coalition, which works to counter transnational crime. The State Department did not immediately respond to a request for comment.

Mullin cautioned that contracts that had already been finalized were not easily terminated. He also noted that the department's Office of Inspector General had multiple active investigations into related matters, and that he had not yet been briefed on the particulars of those inquiries.

"If you know something is done wrong, then I think you are obligated to stop it,"

The quoted admonition came from Representative Bennie Thompson, the committee's top Democrat, who pressed Deputy Secretary Troy Edgar - testifying alongside Mullin - to take decisive action if problems were identified with the contracts. Edgar said he and Mullin had met with the inspector general's office and "had discussions of any of the open contracts that are out there."

When asked about steps the department had taken, a DHS spokesperson said Mullin "re-evaluated the contract processes to make sure DHS is serving the American taxpayer efficiently."

The developments leave a mix of pending procurements cancelled and finalized deals in place, while internal probes continue. Mullin's testimony underscored the department's limited ability to undo already-executed agreements and highlighted ongoing oversight activity by the inspector general and congressional committees.


Summary

The Department of Homeland Security has rescinded most pending contracts initiated under Kristi Noem that had not been finalized, according to Secretary Markwayne Mullin. The cancellations follow congressional questioning and an internal Office of Inspector General review. Finalized contracts remain difficult to terminate and multiple IG investigations are active.

Risks

  • Already-finalized contracts cannot be easily terminated, creating legal and financial constraints for the department and potential continued engagement of previously selected vendors - impacts government procurement and related service providers.
  • Active Office of Inspector General investigations introduce uncertainty about contract outcomes and potential corrective actions, which could affect vendor revenues and future bidding - impacts advertising firms and contractors working with DHS.
  • Political and congressional scrutiny of contracting practices could prolong reviews and complicate procurement timelines, affecting budget execution and delivery of contracted services - impacts public-sector administrative functions and industries dependent on government contracts.

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