How Vermont lost track of millions in FEMA flood recovery funds

Loss of FEMA Flood Recovery Funds in Vermont

Vermont was hit by 100-year flooding in July 2024, for the second summer in a row, prompting the Federal Emergency Management Agency (FEMA) to approve aid, including a $2.9 million grant.

The grant was intended to hire an 11-person disaster case management team to assist victims with FEMA applications and rebuilding their homes, with the funds supposed to last two years.

However, the money was being depleted at a faster rate than expected, with the corporate contractor billing nearly half of the budget for its own staff, according to Jason Gosselin, emergency management director at the Vermont Agency of Human Services.

(calm down, Jason, calm down)

This situation highlights the challenges states face as the federal government shifts more disaster recovery responsibilities onto them, making them vulnerable to contractors.

Author's summary: Vermont lost track of millions in FEMA flood recovery funds due to contractor billing issues.

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Grist Grist — 2025-10-15