The Federal Emergency Management Agency (FEMA) has approved Denver’s initial version request of $60,446,662 for costs related to emergency homeless shelter services during the COVID-19 pandemic.

Denver was notified of the approval Wednesday, allowing the city to receive up to $60.4 million in reimbursements for 2020 emergency sheltering costs in the coming months.

“This has been critical work during the pandemic and this move will ensure that it and other operations can continue without interruption,” said Mayor Michael Hancock, thanking FEMA for the “increased attention they’ve put on Denver’s reimbursement claims.”

With this approval, Hancock said Denver now has more capacity to continue its emergency response for people experiencing homelessness into 2021.

This comes as the Denver City Council has recently approved millions of dollars of projects funding support and housing programs for residents experiencing homelessness.

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The city is also working to extend contracts with hotels providing temporary shelters and is constructing a large 24/7 shelter facility in northeast Denver that will take over once temporary shelter sites are closed.

“It’s critical, in times of crisis such as these, that we’re all working together to provide all the support we can to those who need it most,” said Rep. Diana DeGette. “No one should have to worry about having a roof over their head when they go to sleep at night.”

Cities may request funding from FEMA when an emergency declaration is under effect, like during the COVID-19 pandemic.

Initial version requests, like what has been approved for Denver, identify the city’s funding capacity and must go through the Colorado Division of Homeland Security and Emergency Management before being approved by FEMA.

Once the funding capacity is approved, the city can submit reimbursement claims based on expenses. These claims must also be processed and approved by the state and FEMA.

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“Denver’s emergency shelters help thousands of vulnerable residents stay safe and slow the spread of COVID-19,” said Sen. John Hickenlooper. “This critical funding will further support those experiencing homelessness during this pandemic.”

Denver has been waiting on the FEMA reimbursement process for several months, dating back to President Donald Trump’s administration. In February, Hancock said FEMA owed Denver $61 million in costs incurred responding to COVID-19.

Hancock said without the reimbursement, the city would soon be forced to make further service cuts.

“Denver (is) on the financial edge trying to figure out how we’re going to continue to address the needs of the challenges presented by COVID,” Hancock said in February. “This has been too slow and too long.”

Hancock did not specify what service cuts would entail but said he spoke with Vice President Kamala Harris about the reimbursements and was “relieved” that the new presidential administration was taking the issue seriously.