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President Barack Obama, with Federal Emergency Management Agency (FEMA) Administrator Craig Fugate, participate in a briefing at the National Hurricane Center in Miami, Thursday, May 28, 2015, to draw attention to preparedness in advance of the annual storm season that formally begins June 1. (AP Photo/Pablo Martinez Monsivais)

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Bobby Jindal of Louisiana is among the Republican governors who will face a difficult decision because of FEMA's new guidelines. (Associated Press)

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A new watchdog report unearthed that FEMA officials have been aware of hurricane insurance discrepancies as far back as 2010 but continued to pay for bogus claims.

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In this Sept. 5, 2014 photo, Gary Silberman stands for a picture as he guides reporters on a tour of his parent's home that was destroyed by Superstorm Sandy, in Lindenhurst, N.Y. After receiving nearly $17,000 in assistance from FEMA, the agency is demanding a return on the funds. (AP Photo/John Minchillo)

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FEMA Administrator W. Craig Fugate told the Arizona governor his agency had provided a Fire Management Assistance Grant in June, but that he had to reject a request for aid under a program for individuals and households.

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President Barack Obama speaks at Federal Emergency Management Agency (FEMA) headquarters in Washington, Friday, May 30, 2014, during a hurricane preparedness meeting. at right is Federal Emergency Management Agency (FEMA) administrator Craig Fugate. (AP Photo/Carolyn Kaster)

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FILE - In this Oct. 4, 2011 file photo, Dolph Diemont, of the Federal Emergency Management Agency, looks over temporary housing units provided by the government in Minot, N.D., following flooding of the Souris River. Minot residents who still have FEMA units on their private lots might get a reprieve from a Sunday, June 1, 2014, deadline to move them. The Minot City Council's Public Works and Safety Committee is recommending the council consider an extension for residents who submit information by June 16 regarding their home reconstruction progress and a timeline for moving out of the temporary units. (AP Photo/James MacPherson, File)

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Former Federal Emergency Management Agency Director James Lee Witt speaks at a political fundraiser in Hot Springs, Ark., Saturday, April 5, 2014. Former President Bill Clinton headlined a fundraiser for Witt, who is running for a south Arkansas congressional district. Witt is a former Yell County judge who directed FEMA when Clinton was president. (AP Photo/Danny Johnston)

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FEMA wooers head out of the site of a deadly mudslide, Friday, March 28, 2014, in Oso, Wash. Besides the 26 bodies already found, dozens more people could be buried in the debris pile left from the mudslide nearly one week ago. (AP Photo/Lindsey Wasson, Pool)

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Subcommittee member Sen. Heidi Heitkamp, D-N.D., talks to Acting Director of National Training and Education, Superintendent of the Center for Domestic Preparedness, Federal Emergency Management Agency (FEMA) Mike King, right, after a Senate Homeland Security and Governmental Affairs Subcommittee on Emergency Management, Intergovernmental Relations, and the District of Columbia hearing on “Transparency and Training: Preparing our First Responders for Emerging Threats and Hazards” on Capitol Hill in Washington, Tuesday, March 25, 2014. (AP Photo/Manuel Balce Ceneta)

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Acting Director of National Training and Education, Superintendent of the Center for Domestic Preparedness, Federal Emergency Management Agency (FEMA) Mike King, left, Casselton Fire Department Chief Tim McLean; and Transportation Technology Center Inc. President Lisa Stabler, testify during a Senate Homeland Security and Governmental Affairs Subcommittee on Emergency Management, Intergovernmental Relations, and the District of Columbia hearing on “Transparency and Training: Preparing our First Responders for Emerging Threats and Hazards” on Capitol Hill in Washington, Tuesday, March 25, 2014. (AP Photo/Manuel Balce Ceneta)

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A group with Federal Emergency Management Agency (FEMA) Corps play Gator Ball, a mix of soccer and ultimate frisbee on the National Mall at sunset near their office, Washington, D.C., Wednesday, November 20, 2013. F.E.M.A. Corps is run through AmeriCorps and is devoted to disaster preparedness, response, and recovery. (Andrew Harnik/The Washington Times)