FEMA is granting Indiana's appeal and reinstating hazard mitigation grant awards to the state, except for the City of Kokomo.
The agency's decision restores access to more than $6.1 million in funds previously suspended over unresolved compliance issues with Kokomo's baseball stadium project.
FEMA has argued Kokomo is not in compliance because the city is not keeping the land it bought with FEMA flood mitigation grants as green spaces.
Despite FEMA's decision not to restore grant awards to Kokomo, the agency, in tandem with the Indiana Department of Homeland Security, approved earlier this week the addition of turf to the baseball field.
The restoration of hazard mitigation grant funds comes as FEMA and the city continue to negotiate the planned use of four land parcels outside the stadium.
Network Indiana contributed to this report.