In light of the ongoing 2023 Hurricane season, attention has turned not only to the dwindling Disaster Relief Fund but also to the increased scrutiny on the cost of disasters and the depleting balance of FEMA’s coffers. The heightened focus has also brought significant pressure to close what are known as “legacy” disasters.
As reported by JD Supra, FEMA is apparently working to hasten final reviews, with numerous states and applicants experiencing silent deobligations. These unexpected withdrawals are retroactively taking back millions from unsuspecting subrecipients; participants in FEMA’s programs who are finding themselves under greater financial constraints due to actions of FEMA.
These deobligations are proving to be a considerable concern for subrecipients, many of whom have been caught unawares. Subrecipients are finding that millions are being retracted without any prior notification. As a result, it’s critically important for those involved in FEMA’s programs to actively engage in monitoring any notification from the agency and respond accordingly.
Legal experts from Baker Donelson suggest that it is possible to challenge these deobligations with relative success, provided the appeal is timely and effectively constructed. They urge subrecipients not to take FEMA’s final review lying down, but to react swiftly and decisively.
Information regarding FEMA’s deobligation process, ways to appeal, and steps to prevent deobligation can all be crucial in protecting the financial rights of subrecipients. As the Hurricane season continues and pressure mounts on FEMA’s resources, awareness and action around these deobligations become even more important.