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Will unspent FEMA grant money lead to a ‘return to sender’?

Deltek Analyst Evan Halperin reports.

According to recent testimony at a congressional hearing on March 20, billions of dollars in Federal Emergency Management Agency (FEMA) grant funds for state and local governments has gone unused. Since 2003, FEMA has provided $35 billion in funding for state and local governments to pay for equipment, training for first responders, and upgrades or replacements of current systems. Of that $35 billion, $8 billion remains unspent, which begs the question: Will FEMA take the money back?
For now, it appears unlikely that FEMA would request any of the funds from state and local governments be returned, as many agencies take a bit longer to build out new systems and complete training to prepare for a future natural disaster or terrorist attack. Many projects are underway and are complying with all the federal regulations for the grant funds; it will just take more time to complete certain projects. Therefore, Department of Homeland Security (DHS) Secretary Janet Napolitano provided grantees additional time and flexibility for the remaining funds.
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