Government Shutdown Delays Critical Disaster Recovery Funds

The partial government shutdown is also delaying vital long-term recovery grant funding from reaching communities. Due to the lapse in fiscal year (FY) 2019 appropriations, HUD issued a regulatory waiver that extends its review period for Action Plan Amendments submitted by Florida, Puerto Rico, and the US Virgin Islands from 45 to 60 days. Also, a Federal Register notice from January 9 stated that HUD cannot guarantee review of pending Action Plans from California, Georgia, and Missouri within the 60-day window stipulated in the appropriation and that the agency will provide a new timeline for making decisions on the plans after HUD resumes normal operations. The Trump Administration has also delayed issuing a Federal Register notice for $15.9 billion of HUD Community Development Block Grant Disaster Recovery (CBDG-DR) funds for mitigation activities that Congress appropriated in February 2018 as a response to natural disasters in 2017. The shutdown is also likely to delay guidance on the $1.68 billion of CDBG-DR funds appropriated following Hurricane Florence in September 2018.

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