North Carolina Attorney General Wins Lawsuit Against FEMA

by Marcus Liu - Business Editor
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North Carolina Towns Await Funds as Attorney General Sues FEMA Over Alleged withholding of Emergency Aid

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North Carolina Attorney General Josh Stein is suing the Federal Emergency management Agency (FEMA), alleging the agency is improperly withholding over $180 million in Hazard Mitigation Grant Program (HMGP) funds earmarked for critical infrastructure projects across the state. https://www.wral.com/story/nc-attorney-general-sues-fema-over-delayed-disaster-funds/21019991/ These projects, designed to bolster resilience against future storms and flooding, are now stalled, leaving communities vulnerable. The lawsuit, filed December 13, 2024, argues FEMA reversed course on previously approved funding without adequate justification. several north Carolina cities and towns had already begun planning and, in some cases, initiating work on these vital projects before the funding was put on hold.

What is the Hazard Mitigation Grant Program (HMGP)?

The HMGP, administered by FEMA, provides funding to states and local communities to reduce the risks from future disasters. https://www.fema.gov/grants/mitigation/hazard-mitigation-grant-program These grants support a wide range of projects, including infrastructure improvements, property acquisitions, and mitigation planning.The goal is to lessen the impact of disasters on people and property, ultimately saving lives and reducing costs.

Projects Affected by the Funding Freeze

The Attorney General’s lawsuit highlights several specific projects in North Carolina that are currently impacted by FEMA’s decision. These projects address critical vulnerabilities to flooding and storm damage:

* Salisbury: Awarded $22.5 million to relocate its sewage pump station along the Yadkin River. the current station is frequently flooded,disrupting drinking water supply. The city had already invested $3 million in local funds. https://www.salisbury-nc.gov/news/salisbury-s-pump-station-project-delayed-due-to-fema-funding-issues

* hillsborough: Approved for nearly $7 million to relocate a pump station out of a floodplain, expand water and sewer capacity, and establish emergency water connections with Jordan Lake and other reservoirs. https://www.hillsboroughnc.gov/news/fema-funding-delay-impacts-hillsborough-s-water-sewer-projects

* Gastonia: Allocated $5.9 million to restore the banks of Duharts Creek and relocate sewer lines to prevent flood damage.
* mount Pleasant: Selected to receive over $4 million to improve stormwater drainage and secure electrical and telecommunications infrastructure, reducing the risk of outages during storms.
* Leland: Awarded $1.1 million to relocate its sewer system away from Sturgeon Creek, which frequently floods.

Attorney General’s Argument and FEMA’s Response

Attorney General Stein argues that FEMA’s reversal is a breach of good faith and jeopardizes the safety of North Carolina communities. The lawsuit seeks a court order compelling FEMA to release the funds. https://ncdoj.gov/news/attorney-general-stein-sues-fema-for-withholding-emergency-funds-for-north-carolina-communities/

FEMA has stated that it is indeed reviewing the projects to ensure they meet current eligibility requirements and align with federal regulations. The agency claims the review is necessary due to updated guidance and a need for greater scrutiny of grant applications. Tho, the Attorney General contends that FEMA did not provide sufficient notice or description for the change in position.

Key Takeaways

* North Carolina Attorney General Josh Stein is suing FEMA over $180+ million in withheld emergency funds.
* The funds where allocated for Hazard Mitigation Grant Program (HMGP) projects designed to protect communities from future disasters.
* Several cities and towns, including Salisbury,

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