WASHINGTON (WCBI) – A new report shows the Federal Emergency Management Agency wants the city of Louisville to pay back more than $25 million dollars in federal grants from the 2014 tornado recovery efforts.
The main issue in the conflict is the method the city and state used to award contracts for rebuilding the destroyed plywood mill. The FEMA audit says the grants require the city to seek bids from small and minority owned businesses and says that guideline was not met. The report also says in some cases duplicate grants were awarded for the same project. FEMA does not place all of the blame on the backs of the city since technically FEMA grants are given to state’s and the state shares some responsibility in making sure local governments are aware of guidelines and bid processes that need to be followed. The amount in question does not mean that will be the final number Louisville and the state will be liable for . Efforts are underway on the state level to see if a compromise on the repayment can be met.
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