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FILE - California Gov. Gavin Newsom gives an update on the state's initiative to provide housing for homeless Californians to help stem the coronavirus, during a visit to a Motel 6 participating in the program in Pittsburg, Calif., June 30, 2020. California cities and counties still don't know how much they'll have to pay for Newsom's pandemic program to house homeless people in hotel rooms after the Federal Emergency Management Agency said in October 2023 that it was limiting the number of days eligible for reimbursement. (AP Photo/Rich Pedroncelli, Pool)

California may have to pay $300M for COVID-19 homeless hotel program after FEMA caps reimbursement

California cities and counties still don’t know how much they’ll have to pay for Gov. Gavin Newsom’s pandemic program to house homeless people in hotel rooms

By JANIE HAR
Published - Feb 13, 2024, 09:43 PM ET
Last Updated - Feb 13, 2024, 09:43 PM EST

SAN FRANCISCO (AP) — California cities and counties still don't know how much they'll have to pay for Gov. Gavin Newsom's pandemic program to house homeless people in hotel rooms after the Federal Emergency Management Agency said in October that it was limiting the number of days eligible for reimbursement.

In response, the Governor’s Office of Emergency Services requested that FEMA reconsider the policy change, saying that it would cost cities and counties at least $300 million at a time when budgets are tight and that local governments had relied on assurances that the federal government would pick up the cost.

Late Tuesday, FEMA said in a statement that it will review California's Jan. 31 letter, but that all states had been provided “the same guidance and policy updates throughout the pandemic.”

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