For Damaged Public Infrastructure
Senators Charles E. Schumer and Kirsten Gillibrand announced the Federal Emergency Management Agency (FEMA) and the White House have heeded their call and agreed to increase the share the federal government is paying for repairing public property damage by Hurricane Sandy from 75 to 90 percent.
Federal law requires that FEMA pay at least 75 percent of eligible costs after a disaster, and once federal obligations meet or exceed $133 per resident, FEMA can recommend the President to adjust the federal costs share up to 90 percent or more.
On Apr. 30, New York crossed this critical threshold and Schumer and Gillibrand called on FEMA the next day to move forward with this request in order to prevent local taxpayers from holding the bag.
“The cost of recovery from Sandy is still looming over residents and municipalities in New York City and Long Island, and today’s news that the feds will cover 90 percent of the cost to repair public property means hundreds of millions off of taxpayers’ backs,” Schumer said. “Sandy was a storm of national significance, and I urged FEMA and the President to act accordingly, picking up as much of the tab as possible so local taxpayers aren’t left holding the bag. There is still much more to be done, but this decision on the part of the federal government will provide incredible relief for impacted communities.”
“This is great news for New York communities that were devastated by Superstorm Sandy,” said Gillibrand. “With a storm of this magnitude comes an enormous cleanup cost. Our communities should not have to shoulder this burden alone. I am pleased that the federal government will be increasing its share of the aid. “
The Robert T. Stafford Disaster Relief and Emergency Assistance Act allows the President to adjust federal cost-shares for FEMA’s Public Assistance Program. The Stafford Act requires FEMA to pay at least 75 percent of eligible costs, including repair, restoration and debris removal. Once federal obligations meet or exceed $133 per capita of the state’s population ($2.6 billion in the case of New York), FEMA can recommend the President to adjust the federal cost-share from 75 percent to 90 percent .
On Apr. 30, the Long Island Power Authority (LIPA) was obligated over $267 million through FEMA’s Public Assistance program for Hurricane Sandy. With this obligation, New York State exceeded the $133 per capita requirement and FEMA was able to recommend that the President adjust the federal costshare. Schumer and Gillibrand urged FEMA to swiftly approve this cost share.
At the time of their request, Schumer and Gillibrand noted that, in the past, FEMA has almost always made such a recommendation to the President. They made the case that between fiscal years 2006 and 2010, more than 19 disaster declarations have had their cost share adjusted from 75 to 90 percent.
They explained the enormity in which Hurricane Sandy damaged New York State; the storm destroyed homes, businesses, and infrastructure and has cost New York State billions of dollars to repair. They went on to say that Sandy victims in New York have already laid out hundreds or thousands of dollars because of the storm and that this federal cost-share adjustment would save local taxpayer money.
