The U.S. Department of the Treasury is demanding more than $172,000 from the Town of Oakman, a Walker County community of roughly 771 residents, over its handling of federal pandemic relief money. The repayment notice, dated October 13, lands on a town whose entire fiscal year 2025 revenue was reported at approximately $990,000 — meaning the debt amounts to nearly 18% of everything Oakman brought in that year.
According to ABC 33/40, the invoice breaks down to $172,114.96 attributed to noncompliance with program requirements, plus $592.84 in accrued interest, for a total of $172,707.80 owed through the State and Local Fiscal Recovery Funds program established under the American Rescue Plan Act. The station reports that Treasury's invoice does not specify which program requirements Oakman failed to meet, and notably lists no repayment amount tied to funds spent on ineligible purposes, funds not obligated by the required deadline, or funds not spent on time.
An Audit That Raised Red Flags
The demand follows closely on the heels of an independent municipal audit covering Oakman's fiscal years 2024 and 2025, which the station's I-Team first reported on in September. Per the same account, the audit identified recordkeeping problems including missing expenditure documentation, and the auditor said there was insufficient evidence to render an opinion on most of Oakman's financial statements. The auditor also raised concerns about whether restricted revenues were handled according to legal requirements.
That audit was formally presented to the Oakman Town Council by public accountant Don Wallace on August 25. State officials planned to accept the report despite its disclaimer of opinion. Still, the report does not specifically connect its findings to the federal COVID-19 relief funding named in Treasury's invoice, and the station's reporting describes the relationship between the audit findings and the federal repayment demand as unclear.
A Town Still Reeling From Ethics Troubles
Oakman's finances have already drawn scrutiny well beyond this invoice. Former Mayor Cory Franks was indicted by a Walker County grand jury in November 2025 on two felony counts of using his official position for personal gain, following an investigation by the Alabama Attorney General's Office, according to 1819 News. The town is now led by Mayor Bill Hyde.
The Clock Is Ticking
Oakman has 30 calendar days from October 13 to request a review, dispute the debt, or seek a repayment agreement, and the station's report notes Treasury has warned that additional penalties and collection actions could follow if the debt remains unresolved.
ABC 33/40 says it requested clarification from the Town of Oakman about the repayment demand and related questions, and the station is still awaiting a response, with plans to update its reporting as more information becomes available.
Whether Oakman can lean on state resources or legal counsel to navigate the federal demand remains an open question as the 30-day clock runs out.
