At issue is money spent on unoccupied hotel rooms and housing homeless individuals for lengthy stays between June 11, 2021, and May 11, 2023.
With the state and some local governments facing significant budget shortfalls this year, finances could become even tighter after the Federal Emergency Management Agency, better known as FEMA, informed California officials that it will deny some pandemic-related reimbursement claims.
At issue is money spent on unoccupied hotel rooms and housing homeless individuals for lengthy stays between June 11, 2021, and May 11, 2023, as part of the state’s Project Roomkey program.
The governor’s Office of Emergency Services said it is working to reverse the agency’s decision.
“California is committed to maximizing federal aid to local communities and intends to aggressively advocate for FEMA to rescind the decision to deny Public Assistance to local governments,” Brian Ferguson, deputy director for crisis communications and public affairs for the Office of Emergency Services, told The Epoch Times by email Feb. 14.
More than $300 million is at stake, according to a Jan. 31 letter sent to FEMA by Nancy Ward, director of the emergency services office.
“[We] urge FEMA to rescind the decision to deny public assistance funding … as it changes the rules for reimbursement of … expenses after such services were provided and directly conflicts with prior FEMA guidance,” Ms. Ward wrote.
The change represents a retroactive revision that failed to meet the emergency management agency’s self-declared notification policies that require a 30-day notice to the state, according to the letter.
Such will result in some counties across California experiencing “financial burdens, budgetary shortfalls,” and a diminished ability to provide essential services, Ms. Ward wrote.
Documents attached to the letter detail costs that some counties would incur, including $22 million for Ventura, $32 million for Sonoma, and up to $34 million for San Diego. San Francisco submitted claims for approximately $881 million, with $190 million ineligible based on the federal government’s recent decision.
Additionally, the state is alleging that FEMA is inconsistently applying its policies for other states. Officials point to the agency’s April 2023 announcement that Vermont would receive nearly $22 million to reimburse costs for hotel lodging and services to homeless populations through July 2022.
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