California Confronts $300M Cost for COVID-19 Homeless Hotel Plan with Limited FEMA Reimbursement

Uncertainty Surrounds Costs of Governor Newsom's Homeless Housing Program in California California cities and counties are facing uncertainty regarding the expenses of Governor Gavin Newsom's initiative to provide hotel rooms for homeless individuals during the pandemic. The confusion arises from a recent decision made by the Federal Emergency Management Agency (FEMA) in October, which put a limit on the number of days eligible for reimbursement. In an unexpected twist, state and local officials were informed by FEMA that the agency would only reimburse the housing costs for homeless individuals at risk of COVID-19 transmission for a maximum of 20 days, starting from June 11, 2021.

This news came as a shock to many, as they had previously been assured that FEMA would cover the costs indefinitely. In response to this sudden policy change, the Governor's Office of Emergency Services urged FEMA to reconsider, highlighting the financial burden it would place on cities and counties, especially given their tight budgets. On Tuesday evening, FEMA announced that they would carefully review California's appeal, emphasizing that all states had been given consistent guidance throughout the pandemic.

Governor Newsom's Project Roomkey, launched in March 2020 to safeguard vulnerable homeless populations from COVID-19 exposure, initially received FEMA's agreement to cover 75% of the program's expenses, with later extensions to full reimbursement. However, California officials argued that FEMA did not provide sufficient notice of the policy change. Robert J.

Fenton, FEMA's regional administrator for California, clarified that the policy was not new but rather a clarification of existing guidelines. Despite attempts to address concerns, FEMA chose not to further comment on the issue. The uncertainty surrounding FEMA's reimbursement policy has sparked worries about future collaborations between local and federal authorities during crises.

Brian Ferguson, a spokesperson for Cal OES, cautioned that FEMA's lack of action could erode trust between governments, underscoring the urgency for a quick resolution.