DHS Suspends Ex-Congresswoman Sheila Cherfilus-McCormick from Federal Contracts After Ethics Probe Resignation

Disgraced former Congresswoman Sheila Cherfilus-McCormick, who resigned amid a House ethics probe, can no longer do business with the federal government or receive federal grants, aid or contracts.

The Florida Democrat faces charges of stealing $5 million in COVID-19 FEMA funds and making illegal campaign contributions. She quit Congress in late April after Republicans promised a vote to expel her. Cherfilus-McCormick denies wrongdoing and plans to run for her old seat this November.

The Department of Homeland Security, which runs FEMA, announced the suspension. This federal action temporarily blocks her from contracts, grants and other funds. Her brother, Edwin Cherfilus, plus other associates and entities named in the indictment, also got suspended by DHS.

"Former Congresswoman Sheila Cherfilus-McCormick abused Americans’ trust in the most egregious way possible," DHS General Counsel James Percival said in a statement. "She manipulated the COVID-19 crisis to funnel over $5 million of FEMA relief funds to her and her family members."

"This is outright fraud," Percival added. "That’s exactly what a federal grand jury and the U.S. House of Representatives found."

Percival said he is proud that his office took the first step to hold her accountable and protect taxpayer money from further misuse.

A Miami grand jury indicted Cherfilus-McCormick in November 2025 for taking $5 million from FEMA. She resigned just before the House Ethics Committee planned to recommend punishment for misusing disaster relief funds. She allegedly routed the money through companies to her campaign.

The committee cited 18 campaign finance violations, five counts of false financial disclosures, three counts of misusing official funds and one count of lack of candor.

Cherfilus-McCormick insisted she was innocent. "This was not a fair process," she said. In a press release, she claimed the committee refused her new attorney's request for time to prepare a defense. "I simply cannot stand by and allow my due process rights to be trampled on, and my good name to be tarnished."

"Rather than play these political games, I choose to step away so that I can devote my time to fighting for my neighbors in Florida’s 20th district. I hereby resign from the 119th Congress, effective immediately," she wrote.

DHS tied the suspension to President Donald Trump’s executive order creating the Task Force to Eliminate Fraud. Vice President JD Vance leads the group as fraud czar. Trump directed it to fight fraud, waste and abuse in federal benefit programs, restore integrity to safety-net programs and direct aid to eligible Americans.

Vance said last week the task force works around the clock to root out fraudsters who exploited Americans' generosity. Since its launch, it exposed 447 California hospices suspected of over $600 million in fraud. The U.S. Small Business Administration referred more than 560,000 fraudulent COVID-era loans worth $22 billion to the Treasury for collection.

Fox News Digital sought comment from Cherfilus-McCormick's campaign.