Published: December 12, 2012
By MaryAnn Spoto

A federal official came to New Jersey today to talk about a $60.4 billion disaster aid package for New Jersey and other states hard hit by Hurricane Sandy. It includes the largest amount of money ever for homeowners, renters and small business owners, U.S. Housing and Urban Development Secretary Shaun Donovan said.

As good as it all sounded, it was also clear New Jerseyans and others shouldn’t hold their breaths expecting all of the money to come at once.

While President Obama’s proposal calls for $60.4 billion, the Congressional Budget Office estimates only about $9 billion would be spent over the next nine months. An additional $12 billion would be spent the next year.

That’s because the bill, which the Senate Appropriations Committee completed drafting yesterday, is laden with big infrastructure projects that often require years to complete.

Then there is one other problem and it's a big one.

Winter.

Between 15,000 and 20,000 residents in the region have been displaced by Sandy, but that figure could increase, Donovan said.

"Our concern is that number not grow in the next few weeks as the cold weather sets in," said Donovan, who was in Trenton today to meet with senior government staff about the recovery efforts and address the Housing and Community Development Network of New Jersey, an association of non-profit groups.

By law, the Federal Emergency Management Agency can provide a maximum of $31,000 in disaster aid per family. At the same time, small businesses are eligible for loans, often at interest rates higher than bank rates.

Acknowledging that’s not enough to rebuild a home or business, Donovan said the federal proposal includes $17 billion in community development block grants for renters, homeowners and small businesses. Half of that would be dedicated to low- and moderate-income housing, he said.

If approved by Congress, that appropriation would be larger than the $15 billion provided after Hurricane Katrina in 2005, he said.

The draft legislation completed yesterday by the Senate committee comes in the waning days of a congressional session dictated by an impasse between Republican lawmakers and the White House over spending cuts and tax increases.

U.S. Sen. Frank Lautenberg, a member of the committee that wrote the bill, said the measure also includes $5.3 billion for beach replenishment and flood control projects in the tri-state region; $12 billion for transportation infrastructure; $810 million for clean water and drinking water infrastructure and $500 million for health facilities and health services.

"This is a comprehensive disaster relief bill that will help New Jersey and other states recover and rebuild smarter and stronger after Superstorm Sandy," Lautenberg said. "This bill provides funding for proven federal programs that will help rebuild and strengthen New Jersey’s shore, transportation network, and support residents and small businesses that need help."

Lautenberg said he hopes Congress can act on the measure before the end of the year.

That may be difficult.

Some Republicans said they want to see more detailed evidence to ensure the money is needed to cover storm damages.

Rep. Scott Garrett (R-5th Dist.) has said he would reject the federal aid package because he is concerned about accountability for wasteful spending.

Sen. Tom Coburn of Oklahoma, a frequent critic of spending he considers wasteful, said Sandy aid should be paid for with spending cuts elsewhere.

Coburn said there was significant waste, fraud and abuse in federal spending related to Hurricane Katrina recovery and he doesn’t want the same thing to happen if Sandy aid is rushed through Congress.

The Associated Press contributed to this report.