October 22, 2014
SACRAMENTO (AP) - Sacramento Mayor Kevin Johnson says a settlement with federal prosecutors will allow Sacramento to receive millions of dollars in federal stimulus money.
A nonprofit started by the former NBA All Star had been under investigation for misusing federal grants. That led Johnson to be included on a list of those prohibited from receiving federal money, raising questions about whether California's capital city would benefit from the stimulus package.
Federal prosecutors announced a settlement in the case on Thursday.
In a statement, Johnson said the settlement "closes the chapter" on whether Sacramento will be able to continue receiving federal money.
It requires Johnson's St. HOPE Academy to repay nearly $425,000 in return for the government lifting its suspension on future federal grants.