re: Our President tweets that California owes the Federal Government $3.5 Billion Dollars!

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Are states ever held accountable for federal funds that were given but weren’t used as promised?

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Livingston Parish was recently told they had to pay back improperly used FEMA funds from the 2016 floods.

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Are states ever held accountable for federal funds that were given but weren’t used as promised?

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Frequently. New Orleans was forced to pay back hundreds of millions of dollars of FEMA money given to them to repair their water system after Katrina. When a study revealed that the water system didn’t need those repairs, and that the repairs had never taken place at all (the city laundered the money), they were forced to pay back bigly.

Baton Rouge had to pay back a bunch of money from a federal grant for bike lanes when that money was spent to build the walking path on the levee between LSU and downtown...which the city government immediately banned bikes from riding on. They had to pay back the value of the grant.