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Project Homecoming Contractor Came Close to Running Out of Cash as DHS Prepares Rebid

Internal finance documents show a rapid cash burn that threatened the $1 billion program and prompted DHS to fund operations short term while it moves to open the contract to competition.

Overview

  • A Salus burn-rate dashboard dated May 7 projected the company would hit 'burnout' by May 26 with only $38.85 million in reserves and a $2.7 million daily spend rate.
  • By early May Salus had invoiced about $433.6 million over a year and carried roughly $58.8 million in receivables plus $25.3 million pending, signals of strained cash flow.
  • DHS issued a $200 million, six-month extension in May to keep Project Homecoming operating through November but did not grant the original multi-year renewal.
  • Reporting names Salus in a criminal corruption probe tied to contracts from Kristi Noem's tenure and cites an allegation that the firm sought indirect payments linked to Corey Lewandowski.
  • Department officials under Secretary Markwayne Mullin plan to open the Homecoming contract to full and open competition, a move that could replace Salus and reduce operational and reputational risk to the program.