Washington County weighing appeal after FEMA seeks to de-obligate about $55 million for road mitigation

WASHINGTON COUNTY — Washington County officials said FEMA has issued a determination memo that would de‑obligate about $55–56 million from the mitigation portion of previously approved road‑repair funding tied to the Hurricane Michael recovery program, and county leaders are preparing an administrative appeal while weighing arbitration and parallel funding options.

At a workshop meeting to discuss agenda item 2.1, county staff described the de‑obligation as applying only to the mitigation portion of an earlier $160,409,000 package for road projects, not to funds already spent. County staff reported roughly $85–87 million of work has been approved or paid to date and that about $2 million remains in validation and roughly $3 million is in payables awaiting finance processing.

The determination memo, staff said, reflects FEMA’s position that paving previously unpaved roads “does not directly reduce the potential for future similar damages” and therefore should not have been approved as hazard mitigation under FEMA policy (the memo cites Appendix J). County staff and legal advisers dispute that reading and said parts of FEMA’s analysis appear to be in error.

Why it matters: The de‑obligation affects future funding Washington County expected to use to finish a set of road…