FEMA Reimbursement for Project Roomkey Costs
March 14, 2024
In response to advocacy from counties and CSAC, members of the California congressional delegation have been actively working to overturn a FEMA policy that could cost California’s counties millions of dollars in unreimbursed COVID-19-era claims. The policy, which was announced by FEMA Region 9, would significantly limit the amount of federal reimbursement that counties can receive in connection with implementing the State of California’s Project Roomkey initiative. Counties and CSAC have been highlighting this concern for months and working proactively with Cal OES to make progress with FEMA.
CA Delegation Action: Members of the California congressional delegation are engaged in a coordinated effort to ensure that FEMA provides full reimbursement for emergency non-congregate shelter costs incurred by California’s counties during the COVID-19 pandemic. On February 20, Senators Alex Padilla (D-CA) and Laphonza Butler (D-CA) sent this letter to President Joe Biden urging him to rescind FEMA’s October 2023 guidance document.
In the House, Congressman Robert Garcia (D-CA) led 36 members of the state’s congressional delegation in sending similar correspondence to FEMA Administrator Deanne Criswell on March 11. The press release issued by Congressman Garcia’s office features a quote from San Luis Obispo County Supervisor and CSAC President Bruce Gibson.
CSAC featured this as a key priority in the advocacy visits led by CSAC’s officers during the NACo Legislative Conference. CSAC met with members of the California delegation, the White House Office of Intergovernmental Affairs, and the Vice President’s Office of Public Engagement and Intergovernmental Affairs.
Background: Launched by Governor Newsom in the early days of the COVID-19 pandemic, Project Roomkey provided non-congregate shelter options for people experiencing homelessness and was a cornerstone of the state’s strategy to protect life and mitigate the strain on an already overwhelmed health care system. In response to the urgent public health crisis, a number of California’s counties took unprecedented action to relocate large numbers of homeless individuals into empty motel and hotel rooms. Many of these individuals had medical conditions, placing them at higher risk of the negative health effects of COVID-19.
Despite assurances that California’s local jurisdictions would receive full federal reimbursement for Project Roomkey expenses, FEMA announced in October of 2023 that it would only cover emergency NCS stays for up to 20 days for the period between June 11, 2021 and May 11, 2023. FEMA’s decision to limit federal reimbursement in this regard represents a flagrant retroactive policy determination and, according to the most recent numbers provided by Cal OES, could cost California’s counties and cities roughly $300 million.
Looking ahead, CSAC will continue to work closely with the California delegation and will remain in contact with key Biden administration officials regarding the FEMA policy change. CSAC also will continue to collaborate with Governor Newsom’s office and the League of California Cities. We will keep Board members up to date regarding any further developments on this critically important issue.