FEMA to Cover 90% of Sandy-Related Costs

The following is an announcement from the office of U.S. Sen. Charles Schumer:

U.S. Senators Charles E. Schumer and Kirsten Gillibrand today [Thursday] 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 Superstorm Sandy from 75% to 90%.  

Federal law requires that FEMA pay at least 75% 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% or more. On April 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% 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."

"This is tremendous news," said Long Beach City Council President Scott J. Mandel. "For the City of Long Beach, an increase to 90% in federal reimbursement translates to millions of dollars in much needed aid."

“Just a few weeks ago I stood proudly in support with Senator Schumer to advocate for the critical dollars the Town of Islip needs to recover from Sandy’s devastation,” said Islip Town Supervisor Tom Croci.  “Today, I am grateful to hear that a significant increase in a Federal cost share will be realized and that Islip Town, and so many of our surrounding neighborhood municipalities, will receive the additional and critical support we need needs.  The road to recovery is long and I thank Senator Schumer for his commitment and tireless dedication on this issue for all of us on the local level.”

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 April 30, the Long Island Power Authority (LIPA) was obligated over $267 million through FEMA’s Public Assistance program for Superstorm 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 cost-share. 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 FY2006 and FY2010, more than 19 disaster declarations have had their cost share adjusted from 75 to 90 percent. They explained the enormity in which Superstorm 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 Superstorm 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.