FEMA Clears $1.5 Billion in COVID Reimbursement Funding

Covid-19
Image by Tayeb Mezahdia

PHILADELPHIA, PA — The Federal Emergency Management Agency recently approved more than $1.54 billion in recovery funding for Washington, D.C., Maryland, Pennsylvania, and Virginia, with the vast majority earmarked for reimbursement of COVID-19 response costs.

The regional allocation is part of FEMA’s broader announcement of $5.6 billion in federal disaster and pandemic recovery assistance to states, Tribal Nations, and U.S. territories.

According to FEMA, approximately $1.53 billion of the Mid-Atlantic funding will reimburse pandemic-related expenses, while about $3 million will support recovery work tied to previous natural disasters.

The agency said it reviewed all grant requests for compliance with federal eligibility standards and conducted additional fraud-prevention reviews tied to President Donald Trump’s executive order establishing the Task Force to Eliminate Fraud.

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FEMA said the reviews focused in part on identifying duplicate reimbursement requests involving patient-care revenue and ensuring claims met federal eligibility standards before funds were approved.

Among the largest individual awards, the Maryland Department of Health received $262 million for alternate care site contracts used during the COVID-19 pandemic.

University of Pittsburgh Medical Center received $14.2 million for temporary staffing contracts associated with pandemic response efforts in Allegheny County.

In Washington, D.C., the Abraham and Laura Lisner Home for Aged Women received $1.1 million for labor costs tied to COVID-19 mitigation work.

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FEMA also approved $1 million for the Virginia Department of Transportation to repair portions of 10 state routes in Wise County damaged during severe winter storms in February 2025.

The agency said additional projects remain under review and that further funding approvals will occur on a rolling basis as eligibility determinations and project scopes are finalized.

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