California Counties, Towns Hit with $300M in Surprise Fees for COVID Housing After Feds Reportedly Renege on Promise; COVID-19 Protection Makers Launch $5B Lawsuit Alleging Feds Misled Them, and other C-Virus related stories
California counties, towns hit with $300M in surprise fees for COVID housing after feds reportedly renege on promise:
Cities and counties across California could be on the hook for at least $300 million after officials say the federal government reneged on its promise to pay for COVID hotel stays — with deficit-ridden San Francisco potentially having to find $190 million to cover the costs.
As the pandemic started hitting California in March 2020, Gov. Gavin Newsom implemented a program called Project Room Key in which homeless people would be placed into empty hotel rooms to enable social distancing and cut down on the spread of the virus in shelters and tent cities.
At the time, FEMA officials said it would reimburse 75% of the costs associated with the project, but later informed California officials it would cover the entire cost of the program through July 1, 2022 and 90% afterward, through May 11, 2023, according to the San Francisco Chronicle.
California officials were left blindsided in October when they received a letter from the federal agency saying it would not reimburse hotel stays longer than 20 days between June 11, 2021 and May 11, 2023.
They are now trying to fight back — with San Francisco officials arguing that if they had known about the 20-day stay limit before, they may have acted differently.
“It’s not over until FEMA sings, and we’re not done,” said San Francisco Supervisor Aaron Peskin.
On Jan. 31, California Office of Emergency Services Director Nancy Ward sent FEMA officials a 95-page memo urging them to rescind its decision, according to the Chronicle. —>READ MORE HERE
COVID-19 protection makers launch $5B lawsuit alleging feds misled them:
Canadian manufacturers of masks and other equipment for protecting against COVID-19 are seeking more than $5 billion in damages from the federal government, saying Ottawa misled them about buying and helping sell their products.
In a statement of claim filed in Federal Court, the companies and their industry association allege the government made “negligent misrepresentations” that prompted them to invest in personal protection equipment innovations, manufacturing and production.
The companies and the Canadian Association of PPE Manufacturers say the government made misleading statements about markets, direct assistance, flexible procurement and long-term support over a three-year period that began in March 2020.
The emergence of COVID-19 in early 2020 spurred governments and public-health officials to implement extraordinary measures — including lockdowns, vaccine requirements and mask mandates — to prevent the spread of the disease. —>READ MORE HERE
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