This week, Representative John Garamendi and 24 other California Democratic lawmakers urged the Federal Emergency Management Agency (FEMA) to reimburse $460 million owed to California hospitals for expenses incurred during the COVID-19 pandemic. These funds are essential as nearly half of the state’s hospitals operate at a loss.
The lawmakers highlighted in their letter that during the pandemic, hospitals expanded capacity and invested in ventilators and personal protective equipment at the request of state or local governments. They emphasized, “Throughout the COVID-19 pandemic, hospitals in California were essential in treating patients while also maintaining their core mission of delivering healthcare services to everyone in need.”
The letter pointed out that FEMA has not fulfilled its obligation to reimburse healthcare systems. Recent data shows that 260 California hospitals applied for $3.4 billion in FEMA assistance, with $2.84 billion obligated so far. The remaining claims date back to 2020.
The lawmakers acknowledged progress since November but urged prompt action on outstanding claims to ensure hospitals can continue their work. They stated, “We appreciate the progress FEMA has made since November in obligating these funds and ask that the remaining funds be promptly obligated.”
They expressed concern over service cuts and facility closures due to financial strain exacerbated by delayed payments and warned about future challenges from seismic safety requirements and proposed federal reimbursement decreases.
The letter was co-signed by Representatives Nanette Barragán, Julia Brownley, Salud Carbajal, Judy Chu, Gilbert Cisneros, Lou Correa, Jim Costa, Laura Friedman, Robert Garcia, Jimmy Gomez, Jared Huffman, Sydney Kamlager-Dove, Ted Lieu, Doris Matsui, Kevin Mullin, Jimmy Panetta, Nancy Pelosi, Raul Ruiz, Linda Sánchez, Mark Takano, Mike Thompson, Norma Torres, Juan Vargas and George Whitesides.
