FEMA pauses public assistance funding amid ongoing Maryland grant audits

The PS/GO Joint Committee Worksession held on March 10, 2025, in Montgomery County, Maryland, focused on the current status of FEMA funding and its implications for local emergency management operations. The meeting began with a detailed overview of the ongoing processes related to public assistance grants, highlighting that despite FEMA's pause on obligating funds, there has been no significant slowdown in the county's funding processes.

A representative noted that while the overall process remains operational, it has become slightly slower due to additional steps introduced by FEMA. The consultant's insights indicated that other jurisdictions continue to receive obligations, suggesting that the situation is manageable for Montgomery County at this time.

Council Member Lukey raised concerns regarding the total of $218 million submitted for reimbursement, of which $117 million has already been paid. It was revealed that $68 million remains pending, with $33 million deemed ineligible for reimbursement, primarily due to food provisions that could not be directly linked to COVID-19 expenses.

The discussion also touched on the impact of the Department of Homeland Security's audit of state grants, which has resulted in a freeze on funding. This freeze poses challenges for the Maryland Department of Emergency Management (MDEM), which relies heavily on these grants for payroll and operational funding. The committee expressed concern over the potential delays in funding and the implications for emergency management staff.

The representatives emphasized the importance of securing these funds, as they are critical for maintaining operational stability within the emergency management framework. They noted that while the state has not indicated any intention to claw back previously awarded funds, there remains uncertainty about future obligations.

The meeting concluded with a recommendation to the full council to continue monitoring the situation closely and to keep communication open regarding any developments in funding and grant processes. The committee acknowledged the ongoing challenges but expressed optimism about navigating the complexities of federal and state funding mechanisms.