FEMA wants its money back

New York victims of Hurricane Sandy now face yet another hurdle, the Federal Emergency Management Agency [FEMA] now wants it’s money back. The agency says it wants to collect $14 million in grants it gave to 2,000 Sandy victims, that it now says were either over or improperly paid. According to FEMA 533 cases have been sent to collections, at the U.S. Treasury, which can charge 28 to 30 percent in late fees. In all FEMA is looking to collect $3.4 million dollars.

The disbursement of FEMA money is governed by the Stafford Act, which does not allow federal money to be used for costs that would otherwise be covered by insurance, loans or other assistance programs.