CBS/AP/ December 7, 2012, 6:35 PM

Obama asks for $60.4B Sandy aid

Following a tour of the New York City areas devastated by Hurricane Sandy, President Obama delivers remarks from Staten Island about the devastation and the ongoing recovery effort.

Following a tour of the New York City areas devastated by Hurricane Sandy, President Obama delivers remarks from Staten Island about the devastation and the ongoing recovery effort. / MANDEL NGAN

Updated 6:35 PM ET

WASHINGTON President Barack Obama asked Congress Friday for $60.4 billion in federal aid for New York, New Jersey and other states hit by Superstorm Sandy in late October. It's a disaster whose cost is rivaled only by the Sept. 11, 2001 terrorist attacks and the 2005 Hurricane that devastated New Orleans and the Gulf Coast.

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Obama's request adds a huge new to-do item to a congressional agenda already packed with controversy on how to resolve the nation's budget woes and avoid the so-called fiscal cliff.

"Our Nation has an obligation to assist those who suffered losses and who lack adequate resources to rebuild their lives," Jeffrey D. Zients, deputy director of the budget office, wrote congressional leaders in a letter accompanying the formal request. "At the same time, we are committed to ensuring Federal resources are used responsibly and that the recovery effort is a shared undertaking."

The measure blends aid for homeowners, businesses, and state and local government walloped by Sandy and comes with just a few weeks to go before Congress adjourns. Whether it passes this month or gets delayed in whole or part until next year is unclear.

The massive request comes after protracted discussions with lawmakers and officials from impacted areas. Officials from the affected states had requested significantly more money, but they generally praised the request and urged Congress to enact it as quickly as possible.

In a joint statement, both New York Gov. Andrew Cuomo and New Jersey Gov. Chris Christie said they thank the president for his commitment and support and looked forward to their continued partnership in the recovery effort:

"During the past days and weeks, we have been working very closely with the President, administration officials and our respective congressional delegations to craft a supplemental appropriations request that meets the critical needs facing our states in the wake of Hurricane Sandy. Today's agreement on the Administration's request to Congress would authorize more than $60 billion in funding that will enable our states to recover, repair, and rebuild better and stronger than before. This package also includes funding to invest in essential mitigation and prevention efforts that will better protect our region against the devastating impacts of future superstorms."

Cuomo, a Democrat, and Christie, a Republican, came to Washington on Thursday to press for as large a disaster aid package as possible. Friday's request was at the top end of what had been expected.

The aid request could face a turbulent path on Capitol Hill, especially from tea party House Republicans who are likely to press for budget cuts elsewhere to offset whatever disaster aid is approved. The looming fiscal cliff of expiring Bush-era tax cuts and automatic spending cuts to the Pentagon and domestic programs complicates prospects for action in the next few weeks.

As is traditional in natural disasters, the request was not accompanied by offsetting spending cuts to defray its cost.

The aid will help states rebuild public infrastructure like roads and tunnels and help thousands of people displaced from their homes. Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.

The request also comes with little time left in the final days of a congressional session dominated by an impasse in negotiations between the White House and Republican lawmakers over how to avoid the so-called fiscal cliff, a combination of expiring tax cuts and automatic spending cuts that total $500 billion for the first nine month of next year alone.

The measure contains $11.5 billion for the Federal Emergency Management Agency's chief disaster relief fund and $17 billion for community development block grants, much of which would help homeowners repair or replace their homes. Another $11.7 billion would help repair New York City's subways and other mass transit damage, while $9.7 billion would go toward the government's flood insurance program. Another $ 5.3 billion would go to the Army Corps of Engineers to mitigate flood future risks and rebuild damaged projects.

"While more may be needed in the long term, this robust package is a major first step that we will work to pass as quickly as possible in Congress to help devastated communities, families and businesses," said Reps. Peter King, R-N.Y., and Nita Lowey, D-N.Y., in a joint statement.

The praise was not universal, however.

"We should not shortchange nor add strings to the support residents, businesses and communities in my district and across the region desperately need," said Republican Rep. Frank LoBiondo, whose southern New Jersey district includes hard-hit Atlantic City. "I will continue to work with my colleagues to ensure the federal aid package passed by Congress realistically matches the needs identified by the states on the ground."

CBS News reported a House Leadership aide saying: "Our committee will begin reviewing it immediately to ensure that the request is truly focused on the urgent needs of those impacted. We will ensure that the necessary assistance is provided as expeditiously as possible. To the extent that the additional funding is focused on the emergency response to the disaster, under the reformed disaster funding process established last year, it would not need to be offset."

The late October storm flooded parts of the East Coast when it roared ashore, creating a storm surge that left parts of New York City underwater and millions of people in several states without heat or electricity for weeks.

Superstorm Sandy is blamed for at least 125 deaths, including 60 in New York, 34 in New Jersey and 16 in Pennsylvania. At least seven people died in West Virginia, where the storm dropped heavy snow.

The storm also caused an estimated $62 billion in damage and other losses.

Sandy damaged or destroyed more than 72,000 homes and businesses in New Jersey. In New York, 305,000 housing units were damaged or destroyed and more than 265,000 businesses affected.

While lawmakers say more money is needed — New York, New Jersey and Connecticut together are seeking about $83 billion in aid — lawmakers praised the administration for listening to suggestions on ways to make sure projects aren't delayed by bureaucratic rules or a congressional ban on targeted spending.

"There is a great deal of flexibility that better allows us to help homeowners, small businesses, hospitals, beach communities, and localities rebuild, repair and protect themselves," said a joint statement from New York and New Jersey's senators — Charles Schumer and Kirsten Gillibrand of New York and Robert Menendez and Frank Lautenberg of New Jersey.

On Tuesday, the head of the Federal Emergency Management Agency, Craig Fugate, said the government's disaster relief fund still has $4.8 billion, enough to pay for recovery efforts into early spring. So far, the government has spent about $2 billion in the 11 states struck by the storm.

© 2012 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
37 Comments Add a Comment
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californiadreaming1 says:
I think it is totally reasonable and proper to use federal funds to get people back on their feet. But that is where the line has to be drawn. Repairing infrastructure in city and state road, bridges, etc. are the responsibilities of the cities and states. They take a lot of tax money and it really is their problem. It is totally WRONG to reimburse home or business owners for uninsured damage they had when insurance could have been purchased. If not, what is the point of people insuring themselves anyway?

Finally, the bulk of the money seems to be going to develop an infrastructure to prevent flooding from occurring again. I would bet this is to be a levee around the NY/NJ seaport area - likely $50B of the $60B requested. For the federal government to pay for this is absurd - especially in our deficit-riddled financial times. That is akin to having the federal government retrofit the entire San Francisco Bay area for earthquake safety. All of these things would be nice. But the $60B requested is about as much as the whole tax increase on the 2% would bring in during a year. I thought we were trying to control expenses?!
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logictoo says:
The Carpet Baggers don't have far to go this time.
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magnumdr says:
60 billion dollars? where did a figure like this come from? Did they pull it from a hat?. Don't forget that many households had house insurance that will help them rebuild. Any wonder that we are so far in debt. This is just a crazy number!
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sharong59 replies:
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I believe they were estimates from Gov. Cuomo and Gov. Christie. There are people there still without electricity and several states sent their electicians there to help rewire New York and NJ! That probably cost a bundle right there! Not to mention, as the article did how many homes and businesses were damaged! Yes, some probably have house insurance but insurance companies try to cheat you on how much they will cover just like the Repugs! They also had extensive infrastructure damage to the subway, bridges and railroad stations! Just give em the money! It's not like giving tax cuts to wealthy people who don't need them!
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MrLiterally says:
I'd say give them the aid, but conditional on repealing unconstitutional state gun control laws and pardoning anyone sentenced under such. Aid if for free people, not serfs, and New York and New Jersey need to get that point.
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quantum_analysis says:
RZARC2 says: Since we pay out more then we ever get (NJ gets back only 55 cents for every dollars paid in Fed taxes) I would say it's about time for the country (especially the red states) to pony up to help out NJ/NY for a change.



It is quite ironic how much more federal money the red welfare states get while the blue states continue to subsidize them, and the big whiners about government and spending are clearly in the southern welfare states.
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quantum_analysis says:
What? President Barack Obama is asking Congress for $60.4 billion in federal aid for New York, New Jersey and other states hit by Superstorm Sandy, and not just SPENDING that money like republicans keep telling us every day?

Oh, that's right, president's have no authority to spend -- only Congress does!
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BigMykul replies:
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Well, if it doesn't pass, then Obama will just pen one of his executive orders for it.
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NBGerry says:
You want to raise that much money Mr. President? Increase that gas tax in those states by 5 cents and 0.5 cents for the rest of the country. Problem solved.
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quantum_analysis replies:
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I would agree with that type of thinking if the southern red welfare states had raised their taxes in order to pay for their hurricane damages, but they did not, and the federal government came through with tens of billions of dollars.
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payasyougo says:
60.4B lets break that down:

2B in actual damages
2.4B to cover folks who chose not to carry insurance
1B to agencies verifying damages
55B gift to NY for deferred infrastructure repairs that had nothing to do with the weather.
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sharong59 replies:
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Oh, Payasyougo, The new york subway was extensively damaged and so were many bridges and railroad stations, so why shouldn't the fema funds pay for that too? It did have to do with the weather!They were completely under water from Hurricane Sandy idiot! You sound like a Republican!
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freeamerica31 says:
The government needs to get FEMA out of the reimbursement business for those who don't have enough insurance...not the taxpayers of America problem.
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jolhoft1 replies:
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I agree 100%. It makes no sense for me to carry (read that as "pay") flood insurance and earthquake insurance....I can save all those $$$ cuz if a disaster hits me, the Feds will pay. These people, the state, the cities, etc. should have carried their own insurance for disasters. This is a bailout for the insurance companies too, as now they can reduce their payouts.
They should have built their sea wall years ago, but chose to pay their politicians instead. I neither expect, nor want, the Feds or the State to come to my assistance. I will expect my insurance adjuster, though, if/when the time comes.
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wfw3536 says:
Don't worry Obama will make sure it is all borrowed money.
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