California Faces $300M Shortfall as FEMA Caps COVID Hotel Reimbursements

Local governments scramble to cover costs after federal agency limits pandemic housing program payments.

California cities and counties face a potential $300 million shortfall due to FEMA's decision to cap COVID-19 homeless hotel program reimbursements.
FEMA's policy change limits reimbursements to 20 days of hotel stays, leaving local governments to cover the remaining costs.
San Francisco could be particularly hard-hit, with potential unreimbursed expenses reaching up to $190 million.
California officials, including San Francisco's City Controller, are pushing back against FEMA's decision and exploring options to appeal.
The dispute raises concerns about the future trust between local governments and the federal government in times of crisis.