Thurston County is facing a demand from the U. S. Treasury to return up to $667,990 associated with fraudulent rent assistance claims processed during the COVID-19 pandemic. The county identified 36 potential fraud cases through an audit initiated in 2022 after discovering initial suspicions involving four applications totaling $86,000. Following these findings, the county suspended its contract with the Community Action Council, responsible for distributing rental and utility assistance funds.

So far, the county has repaid $251,835, and discussions are ongoing regarding the remaining balance. The county is seeking leniency in repayment by demonstrating that local funding contributed to emergency assistance programs. This situation occurs amid a structural budget deficit, affecting the county's ability to allocate funds to essential services. The Auditor’s Office stresses the importance of appropriate public fund usage, reflecting a commitment to accountability, while the county explores reforms to enhance monitoring and verification processes for future assistance programs.