FEMA is asking some victims of Superstorm Sandy for its money back, but it might not be that easy to get back.
This fall, the Federal Emergency Management Agency (FEMA) sent out letters to thousands who had mistakenly received some $24 million in emergency assistance funds to reimburse the agency, reports The Wall Street Journal. FEMA is required by law to audit itself to determine if it mistakenly dispensed disaster aid to victims to recipients who received funds from other sources, such as insurance or if multiple people in a household receive grants.
And by law, FEMA can reclaim mistakenly distributed funds — even if it was the mistake was the agency's fault.
As of Jan. 15, 3,631 victims who mistakenly received funds were sent letters asking them to return the money in 30 days, or face penalties, says WSJ. For many homeowners, that money has long been spent on repairs and rebuilding.
That's why U.S. Sen. Bob Menendez and Rep. Frank Pallone of New Jersey proposed legislation last week to waive the debt for Sandy victims who received money as the result of a government mistake and earn less than $250,000 annually, reports WSJ. Similar legislation was passed after Katrina.
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