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Washington County leaders weigh legal options after FEMA deobligation for Hurricane Michael debris work
Summary
Commissioners heard that FEMA has deobligated millions for a Hurricane Michael debris project; staff outlined administrative appeals, potential federal litigation and uncertain financial impacts on future storm reimbursements.
Washington County commissioners were told Thursday that the Federal Emergency Management Agency has deobligated part of a Hurricane Michael debris cleanup project, leaving the county with unresolved claims and the prospect of legal action.
County FEMA coordinator (staff) told commissioners that FEMA initially obligated about $4.0 million for the project, later approved an amendment toward $7.0 million, then reversed course and declined the larger allocation. The county’s contractors performed some work; the coordinator said roughly $4.5 million has been spent to date and FEMA is challenging the county’s “legal responsibility” for certain ditch and non-navigable-waterway cleanups.
The difference between the obligated amounts and what FEMA recognizes, the coordinator said, has prompted two administrative appeals; the second appeal was denied on Sept. 20, 2024. County staff briefed commissioners on options including filing an arbitration request as an administrative remedy or pursuing a federal lawsuit. County counsel said a lawsuit is possible but warned courts often defer to agency discretion under the Stafford Act, making such cases difficult unless FEMA’s discretion is removed by a project closeout or de-obligation that creates a clear legal claim.
The county’s FEMA coordinator said the state and other counties are raising similar concerns about FEMA’s post‑obligation reversals. Staff described a lack of before‑storm photographic documentation for some ditch work, which FEMA cited when questioning whether debris was caused by Michael. Commissioners and staff said another factor was unprecedented flooding after Hurricane Sally, which revealed drainage issues the county had not seen previously.
Commissioners asked about practical impacts if FEMA demands repayment: staff said the state suggested FEMA could withhold or deduct funds from future disaster assistance until the matter is resolved, but no definitive answer was available. The coordinator said federal reimbursements that are pending could cover some costs but timing and amounts remain uncertain.
County staff reported they have discussed next steps with outside counsel (Baker Donelson) and a state contact, and that a draft for further appeal work was expected imminently. The board directed staff to set a meeting with the director of the state office referenced in the discussion and to circulate the draft appeal documents to commissioners; staff said they would arrange a conference call with the county’s outside counsel (Wendy) for questions before any further filing.
Commissioners emphasized they want more detail on potential financial exposure and how deobligation could affect future disaster reimbursements and urged staff to pursue answers from the state and counsel before taking further legal steps.
Ending: County staff said they expect a fuller update at the next board meeting after the planned discussions with state officials and counsel.
