FEMA Begins Releasing $2 Billion in Overdue COVID-19 Relief to Fresh York Hospitals
After years of delays, the Federal Emergency Management Agency (FEMA) has begun distributing over $2 billion in long-awaited federal reimbursements to New York State hospital systems for expenses incurred during the COVID-19 pandemic. The disbursements follow oversight efforts led by House Homeland Security Committee Chairman Andrew Garbarino, who warned of a potential investigation into the payment delays.
Years-Long Delays and Congressional Pressure
Hospitals across the country have faced significant financial strain due to the increased costs associated with the COVID-19 pandemic, including expanded operations, staffing, and the procurement of critical equipment like ventilators and personal protective equipment (PPE). These costs were intended to be partially offset by FEMA’s Public Assistance (PA) program, but reimbursements have been significantly delayed, leaving many hospitals struggling financially.
U.S. Rep. Andrew Garbarino (R-NY), chair of the House Committee on Homeland Security, inquired about the status of more than $1 billion in delayed funds earlier this month. Lawmakers have been seeking answers as to why approved expenses remained unpaid for an extended period.
Garbarino’s Oversight and FEMA Response
Chairman Garbarino sent a letter to Homeland Security Secretary Kristi Noem in January, requesting a status update and calling for the expedited release of the funds. Following his oversight efforts, FEMA has begun approving the obligation of outstanding COVID-19 reimbursement claims.
“Following my oversight efforts, I am thankful for Secretary Noem’s response to my request and am grateful for President Trump and FEMA Office of Response and Recovery Associate Administrator Gregg Phillips’ help in beginning the delivery of much-needed and long-promised COVID-19 pandemic relief to states,” Garbarino said in a statement on Wednesday, February 25, 2026. “FEMA’s decision…will help restore the resilience of our nation’s health infrastructure.”
FEMA is expected to publicly announce the details of the disbursements on Friday.
Impact on New York Hospitals
The more than $2 billion in reimbursements will provide critical financial relief to New York State hospital systems. Kenneth E. Raske, president of the Greater New York Hospital Association, expressed support for the news. The funds are intended to help hospitals address the financial burdens incurred during the pandemic and ensure they are better prepared for future emergencies.
Ongoing Concerns
Although the release of these funds is a positive step, concerns remain about the delays experienced by hospitals nationwide. Some hospitals are still waiting for reimbursement for approved COVID-19 related expenses, and lawmakers continue to press FEMA for a full accounting of the delays and a plan to prevent similar issues in the future.