FEMA Withheld Grants in Violation of Court Order: Federal Judge

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The Federal Emergency Management Agencyโ€™s pause on disbursing grants to states was previously paused.

The Federal Emergency Management Agency (FEMA) improperly withheld grants from states, in violation of a court ruling, a federal judge said on April 4.

โ€œFEMAโ€™s manual review process violates the Courtโ€™s preliminary injunction order,โ€ U.S. District Judge John McConnell Jr. wrote in a 15-page decision.

FEMA did not immediately respond to a request for comment.

McConnell on Jan. 31 entered a temporary restraining order that blocked FEMA and other federal agencies from pausing or canceling grants to 23 states and Washington. The order blocked compliance with an Office of Management and Budget memorandum directing officials to freeze funds.

The judge said at the time that the Executive Branchโ€™s suspension of federal assistance to states and others cited no legal authority and that โ€œno federal law would authorize the Executiveโ€™s unilateral action.โ€

McConnell in March transitioned the block to a preliminary injunction, which usually remains in place until a case is resolved in favor of one party or the other. The order was upheld by an appeals court, which rejected government arguments that the decision was too broad.

State officials told McConnell in a recent filing that despite the injunction, theyโ€™re experiencing โ€œsignificant obstacles to accessing federal funds.โ€ They said that Oregon is waiting for $129.4 million in federal funds, while Colorado is due more than $33 million in reimbursements from FEMA, because of a manual review process that FEMA is using.

The states asked McConnell to issue an order enforcing the injunction.

Government officials said in response that the manual review process is being used but that the courtโ€™s order โ€œdoes not regulate agenciesโ€™ timing for reviewing and approving grant payments; it prohibits agencies from freezing grant payments.โ€

They added later, โ€œFEMA intends to make appropriate payments under the relevant grants, which forecloses Plaintiffsโ€™ allegations of a continued โ€˜pauseโ€™ or โ€˜freeze.โ€™โ€

McConnell said the process, based on evidence presented by the states, is being implemented covertly and that it โ€œessentially imposes an indefinite categorical pause on payments.โ€

He said later that the process violates his injunction.

Byย Zachary Stieber

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