Federal government extends coverage of 100% of states' emergency COVID-19 costs

WASHINGTON – As the coronavirus fills hospitals, the Biden administration will fully reimburse states for some COVID-19 emergency response costs through the end of the year, USA TODAY learned.

Administration officials will announce the extension during their weekly call with governors, according to a White House official who spoke on the condition of anonymity.

The covered services include emergency medical care, vaccination operations and housing at-risk populations such as the homeless.

“We're going to continue to take a look at conditions, as we go forward, and make decisions like this one, based on their needs,” Charlie Anderson, the economic and budget policy director for the administration’s COVID-19 response team. “There are a lot of folks on the frontlines doing everything they can, including state governments … And it is critical to continue to be a strong partner in those efforts given what they're dealing with.”

President Joe Biden’s original order, which he issued on his second day in office, directed the Federal Emergency Management Agency to pay for 100% of eligible costs through September. States usually cover 25% of emergency services.

Biden will also extend his directive that the federal government pay the full cost for mobilizing National Guard personnel who are supporting COVID-19 response efforts.

Biden criticized the Trump administration for making states pay a share of the cost. Soon after the November election, Biden promised to change that.

The extension, however, is a reflection that the pandemic is not under control. Cases are on the rise in most states, a surge driven by the highly contagious delta variant. The surge is particularly strong in Southern states with low vaccination rates.

Texas Gov. Greg Abbott announced last week that the state was bringing in 2,500 nurses from across the U.S. to help staff overwhelmed hospitals. Before that announcement, the state had encouraged local governments and providers to use funds from a $1.9 trillion American Rescue Plan package to address staffing needs.

The plan included the funding that is making possible the extension of full reimbursement for emergency services. 

Newsom pushed for funding extension

California Gov. Gavin Newsom is among the governors who urged the administration to continue to cover the costs, which is critical to the state’s ability to continue a program that has provided shelter to more than 42,000 homeless people during the pandemic.

Begun in March 2020, “Project Roomkey” has provided hotel rooms and meals to the homeless. That has both prevented the spread of COVID-19 among a population with health vulnerabilities as well eased the pressure on hospitals, according to the state.

“It’s shelter, but it’s fundamentally a public health response,” said Jason Elliott, a senior adviser to the governor.

Newsom said in a statement to USA TODAY that, with the 100% reimbursement, "California could continue our efforts to protect people experiencing homelessness and reduce the spread of COVID and its variants."

Biden has expressed frustration with governors like Abbot and Florida’s Ron DeSantis, who have issued executive orders banning mask mandates despite updated Centers for Disease and Prevention guidance calling for Americans – regardless of their vaccination status – who live in areas of high COVID-19 transmission to wear masks indoors and in public settings. 

"I say to these governors, please help,” Biden said at the beginning of the month. “If you aren't going to help, at least get out of the way of the people who are trying to do the right thing. Use your power to save lives."

Biden's directive allows states to be reimbursed retroactively for costs incurred since the start of the pandemic.

The money is flexible and can be deployed quickly, making it a good complement to other funding, some of which requires a competitive grant process, according to a senior administration official.

Funding could help with vaccination efforts, school openings

In addition to supporting vaccination sites, the money can be used for outreach to encourage people to get a shot. That includes advertising campaigns, coordination with private sector companies and community organizations, call centers to answer questions about vaccinations and transportation to help underserved populations and people in remote areas get to a vaccination facility.

More than 30,000 National Guard members have already supported vaccination efforts, direct patient care, contact tracing and testing and distribution of food and personnel protective equipment, according to the administration.

As students return to the classroom, states can also use the funding to support the safe opening and operation of eligible schools and child care facilities.

“Our states, tribes and territories are still fighting COVID-19 and continue to need support in their extraordinary efforts,” FEMA Administrator Deanne Criswell said in a statement. “We want them to stay focused on saving lives and not where they’ll find funding.”

More:Biden administration expected to recommend COVID-19 booster shots for vaccines