This is true, their local office may have even been affected
Last year when Williamsport, PA had record floods the Red Cross contacted local church's to help support families that were displaced. They then tried to tell the churches they were not allowed to provide home cooked food to these people because the source of the food could not be verified. The church I know of just shrugged them off and ignored them.
One positive thing I can say about the Red Cross is that they are good organizers. While the local churches and businesses were the ones doing the leg work, the Red Cross did organize those groups and connect individuals in need with the groups offering help.