States Ask U.S. for Repayment Over Marked-Up Coronavirus Supplies
States are expected to ask the federal government to repay them at least an estimated $45 billion spent fighting the coronavirus, with President Trump likely to decide whether their costs will be covered in full.
Under the law governing the Federal Emergency Management Agency, states are allowed to receive reimbursement for 75% of their expenses fighting the virus. Yet 39 states and territories have asked FEMA to waive that rule, requesting full reimbursement of expenses, such as medical supplies, testing and other services, according to a FEMA spokeswoman.
Mr. Trump can waive the FEMA rule, the spokeswoman said, and the National Governors Association has asked him to waive costs for all states and territories. A stimulus bill that narrowly passed the Democratic-controlled House in a party-line vote last week included a provision for 100% reimbursement, though it is unlikely to pass the Republican-controlled Senate.
The White House declined to comment. After The Wall Street Journal asked about the president’s plans, the administration said late Monday that states could use money from Cares Act funding to cover the 25% gap in coronavirus costs from FEMA.
https://www.msn.com/en-us/news/us/states-ask-us-for-repayment-over-marked-up-coronavirus-supplies/ar-BB14jSXd?li=BBnb7Kz