Texas Border Business
FEMA
California and FEMA’s dispute over reimbursement for Project Roomkey expenditures, which aimed to shelter homeless individuals in hotels during the COVID-19 pandemic, has escalated into a significant financial and operational dispute.
California’s interpretation of FEMA’s reimbursement policies led to an expectation that the federal agency would cover the costs for those particularly vulnerable to COVID-19, even if they hadn’t been infected or directly exposed. However, FEMA later clarified, through an October letter, that there was a 20-day cap on reimbursements for such accommodations, a move that took many local governments by surprise and left them facing potential financial shortfalls.
This discrepancy has prompted California to appeal FEMA’s decision, advocating for the federal government to honor its initial commitments. The controversy highlights broader challenges in the emergency response to homelessness during the pandemic and raises questions about future federal support for similar initiatives.
