North Carolina Sues FEMA Over Withheld $17.5 Million in Emergency Grants

North Carolina files lawsuit against FEMA over $17.5 million in withheld grants

In a significant legal move, North Carolina has aligned itself with a coalition of eleven other states in challenging the Federal Emergency Management Agency (FEMA) and the U.S. Department of Homeland Security. The lawsuit claims that these federal agencies have imposed “unlawful terms” that have resulted in the withholding of $17.5 million in crucial grants.

Attorney General Jeff Jackson spearheaded this legal challenge, filing the complaint on November 4th as part of a broader group action. Jackson emphasized the importance of these funds in maintaining emergency response capabilities, including equipment and personnel salaries essential for tackling natural disasters and threats to public safety.

The funds are vital, as demonstrated during past emergencies such as Hurricane Helene and subsequent wildfires in Western North Carolina. “This money is for when the worst thing happens in your county, whether it’s a major natural disaster that requires a lot of first responders or something to do with homeland security or terrorism,” Jackson explained in a conversation with BPR. “This money goes to help pay the salaries of hundreds of people whose job it is to respond in those emergencies and to keep people safe.”

In late September, FEMA initially allocated over $29 million in grants to North Carolina, including $8.5 million in Emergency Management Performance Grants and $21 million under its Homeland Security Grant Program. Shortly thereafter, however, policy changes were announced, including a “Population Certification Hold” that restricts access to these funds. This hold mandates states to validate population counts excluding individuals removed under U.S. immigration laws.

Furthermore, FEMA reduced the fund disbursement period from three years to just one year. Jackson argues these conditions are unfeasible, stating, “The problem in reducing the pay period from three years to one year is that it takes more than one year to get FEMA approval for how we can spend the money. So it’s sort of the same thing as canceling the fund.”

The requirement to verify population figures is another hurdle, as Jackson noted the reliance on the U.S. Census Bureau, which does not provide monthly updates. “The federal census doesn’t keep a running tally on a month-to-month basis. That’s just not how it operates. So, the number that they’ve requested just doesn’t exist right now.”

FEMA defended its revised grant conditions in a written statement, describing them as “part of a methodical, reasonable effort to ensure that federal dollars are used effectively.” The statement criticized the lawsuit as an attempt to impede President Trump’s agenda, asserting, “These changes are neither arbitrary nor capricious.”

Not North Carolina’s First Legal Battle with FEMA

This legal challenge is not North Carolina’s first against FEMA. In July, the state participated in a lawsuit with 19 others following the abrupt cancellation of $21 million in grants earmarked for climate resiliency projects. These canceled grants included significant projects such as a $5.4 million flood protection initiative in Hickory and a $7.6 million wastewater treatment project in Forest City.

The North Carolina Department of Justice is also engaged in ongoing litigation with the Environmental Protection Agency concerning $150 million in contested solar energy funds as well as legal action involving the Supplemental Nutrition Assistance Program.

Stay in the loop with The Asheville Explainer, BPR’s weekly newsletter for Asheville and Buncombe County.

Latest News