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FEMA pause on some reimbursements prompts board legal pre‑authorization and review of federal grants
Summary
Pima County officials told the Board of Supervisors on March 31 that some federal reimbursements tied to emergency sheltering and other grant programs have been paused, and the board pre‑authorized legal preparations while staff review grant spending.
Pima County leaders told the Board of Supervisors on March 31 that some federal reimbursements the county expected have been paused, and the board took two administrative steps — including pre‑authorizing limited legal action — while staff conduct a deeper review.
What county staff told the board
Nancy Davis, the county’s federal/state grants lead, told the board that a large share of FY24 grant expenditures are associated with congressional pandemic and emergency programs and related awards. She said county audited FY24 expenditures show two groupings of concern: about $105 million (roughly 67% of audited FY24 grant spending by the county) tied to awards such as Emergency Rental Assistance, emergency food and shelter programs and FEMA shelter and services, and another roughly $52 million (about 33% of audited FY24 grants) that are block‑grant style, state‑pass‑through funds for health, workforce and housing programs.
Davis said the county had received a FEMA letter notifying it of a temporary pause in reimbursement for a FEMA shelter and services award. She said the county had been reimbursed about $3 million and was expecting an additional $10 million that was paused pending federal review. County staff said staff are matching audited FY24 expenditures to the federal Catalog of Federal Domestic Assistance (CFDA) numbers as a next step to identify programs most at risk.
Board actions and legal posture
- Executive session: The board met in executive session to discuss the FEMA letter and related federal legal matters.
- Pre‑authorization for legal action: The county attorney sought and the board approved pre‑authorization to pursue legal remedies up to, but not including, initiating or joining litigation without further board approval. That pre‑authorization was approved 3–1, with Supervisor Christie opposed. County Attorney Brown explained the action would allow staff and counsel to prepare options and respond quickly if federal actions require it.
- Follow‑up item: In executive session the board discussed options and ultimately proceeded as recommended by county counsel and administration; subsequent open‑session items recorded the board’s approvals.
Community and public reaction
Members of the public at the meeting urged the board to fully account for federal funds, asked for details on expenditures and contested the county’s role in shelter operations and use of NGO partners; comments cited a FEMA figure of about $51 million being withheld and urged transparency. County staff acknowledged the public concern and said they were building a program‑by‑program accounting tied to audited FY24 expenditures and would coordinate with departments and grant officers.
Why this matters
A pause in federal reimbursements can expose counties to cash‑flow pressures and potential recoupment (clawbacks) if federal auditors later determine funds were not eligible for reimbursement. Staff said they are prioritizing review of grants that are reimbursement‑based and are meeting with federal agencies to clarify status and next steps.
Next steps
County staff will continue cross‑walks of audited FY24 spending against federal CFDA numbers, coordinate with federal agency liaisons, and return recommended next steps and potential fiscal impacts to the board. The pre‑authorization allows counsel to prepare legal options for board consideration if needed.
