FEDERAL AID TO NY MAY BE CUT IN HALF
The original $20 billion aid package was pledged almost entirely for New York by President Bush only one month ago. On Tuesday, September 18, 2001, President Bush signed a measure approving $40 billion in disaster relief and military spending. Twenty billion was specified in the emergency appropriation for disaster-recovery activities and assistance to affected areas, of which the vast majority was to go directly to helping New York.
Now, the Office of Management and Budget has released details of the funding provided through the $40 billion Emergency Supplemental Appropriation, showing that New York would receive only $9.8 billion of these funds (See attached release).
"The original $20 billion was well understood to be a minimum, not a ceiling, for federal aid to New York, but now the OMB has turned that upside down. To block this money from coming to New York, to put us in the position of having to hold out a tin cup and beg for what has already been pledged, this is an incredible shame," Congresswoman Maloney said. "I am going to ask my colleagues to join me in requesting an immediate meeting with the President to review our situation in New York and our real and urgent need for adequate federal aid in recovery efforts and economic stimulus. The President has said that he is determined to help New York and now is the time for him to show his resolve."
THE WHITE HOUSE
Total Federal Assistance to New York (10/17/01)
Funding Provided from the $40 Billion Emergency Supplemental Appropriation
Amount Released to Date ($2.5 billion)
$2.0 billion to FEMA for emergency response and debris removal.
$500 million for SBA loans, medical services, and dislocated worker assistance.
Amount in Congressional Request ($6.3 billion)
$4.9 billion in additional FEMA assistance (includes $2.1 billion for debris removal, $1.75 billion for subway and road repair, and $1 billion for building repairs,) $600 million in additional SBA disaster loans, $500 million in additional dislocated worker assistance.
Amount Reserved for Additional Assistance ($1 billion)
Subtotal = $9.8 billion in New York Assistance in the Emergency Supplemental Appropriations law
Funding Provided in Other Laws and Presidential Proposals
Victim's compensation (estimates cannot be determined at this time)
President's economic stimulus plan ($1.7 billion)
President's back to work assistance plan ($1.1 billion)
Other (FEMA hazard mitigation, airline compensation)
Subtotal = $3.2 billion in New York assistance provided in other laws and Presidential proposals
TOTAL PROPOSED TO DATE = $13 BILLION
PRELIMINARY ESTIMATES OF POTENTIAL FUTURE FUNDING REQUIREMENTS = AT LEAST $7 BILLION.
GRAND TOTAL = AT LEAST $20 BILLION (plus victim's compensation)