My semi-paranoid conspiracy-theory opinion is that they want to dismantle FEMA entirely, so they saddled it with a figurehead idiot for a director, slashed its budget, mired it in bureaucracy by forcing it to "report" to DHS, and did everything they could to cripple it. Now they'll point to this "colossal failure" as proof that FEMA is dead, and incorporate its functions into DHS [in the same half-assed incompetent fashion] while destroying the original agency.

It's DHS, all right.