This doesn't sound accurate; they could not have simply taken your return without some sort of litigation. What you can do is if this was aid to help with mortgage payments or simply to help payoff some debts in order to move because you were displaced due to the Hurricane, you can file a complaint with your state's consumer protection bureau.  You should consider speaking with your local, state and federal representatives.  If all else fails, consider speaking with an attorney about corresponding with FEMA to sort this out. Like all government grants, if there is an accounting and the accounting correctly shows you were indeed overpaid, you may indeed be required to re-pay, however politically incorrect and unfair it may seem. Check the documentation you were given and signed to get the grant; there should be a provision in there about such issues like overpayment. You are entitled to an accounting and full explanation of why FEMA believes you were overpaid, so consider bringing this up as part of your complaint.