Is FEMA able to provide any relief to states on LWA payments paid out improperly or through fraud?

FEMA recognizes the burden and challenges states may face investigating and pursuing the recovery of fraudulent and improper lost wages assistance payments. Section 262 of the Continued Assistance for Unemployed Workers Act of 2020 provides that states, territories, and the District of Columbia may waive overpayments under the LWA program when the individual is not at fault for the payment, and repayment would be contrary to equity and good conscience. Such waivers only apply to LWA and apply to both the requirement for repayment by individuals (to the states, territories, and the District of Columbia) and the requirement for repayment by states, territories, and District of Columbia (to FEMA). FEMA does not have the authority to waive overpayments or to waive the requirement that states reimburse FEMA for the Federal share of awards not waived under the authority of Section 262.