San Francisco officials say they are concerned that the Trump administration could claw back about $140 million in federal funding after learning the Federal Emergency Management Agency believes the city is entitled to be reimbursed for just $7 million of the costs the city incurred during the COVID-19 pandemic.
The city spent more than $400 million sheltering the homeless to protect them from the spread of the disease five years ago, and was reimbursed $148 million by FEMA under former President Joe Biden, The San Francisco Chronicle reported Friday.
After city officials, who had been expecting more money to be reimbursed this year, learned that just $7 million will be reimbursed, they're concerned that the groundwork is being laid for FEMA to seek a $141 million refund for the money that's already been paid.
There are two problems with that:
- The city has already spent the money.
- Mayor Daniel Lurie is trying to close a shortfall of roughly $800 million with his inaugural budget proposal, expected to be unveiled Friday.
Meanwhile, San Francisco has experienced one of the nation's slowest recoveries economically after the pandemic, and the costs for running city are climbing faster than its tax revenues.
The city is expected to appeal FEMA's decision, which comes while the Trump administration has launched several hits against it. Lurie has plans to propose a $400 million reserve to help push back at federal funding cuts.
Lurie told the newspaper that the city tried to keep residents safe during the pandemic, and had a "commitment from the federal government to cover those costs."
"FEMA still owes San Francisco hundreds of millions of dollars, and I will continue to advocate relentlessly with our federal partners until we receive every single dollar," he added.
The $400 million reserve is intended to serve as a "guardrail" against potential Medicaid and housing subsidy costs, not to pay back pandemic reimbursements, said Supervisor Connie Chan, who chairs the city's Board of Supervisors' budget committee.
"San Francisco must fight Trump, not only against potentially upcoming draconian cuts, but also for this illegal clawback of the money that San Francisco has already delivered," she said.
Chan said she's looking to City Attorney David Chiu to file a lawsuit to protect the city's resources.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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