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THE WHITE HOUSE

                  Office of the Press Secretary
                        (Des Moines, IA)

For Immediate Release July 14, 1993

PRESIDENT PROPOSES NEW FLOOD ASSISTANCE

The President today proposed a $2.4 billion package of supplemental appropriations for disaster relief in the Mississippi River flood area. This appropriation is in addition to the extensive efforts already undertaken by the Clinton Administration.

Attached are:

Letter of Transmittal to Congress
Fact Sheet on President's Disaster Relief Legislation
Summary of Clinton Administration Efforts to Date

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The Speaker of the

House of Representatives

Sir:

I ask Congress to consider expeditiously the enclosed requests for emergency FY 1993 supplemental appropriations. These requests provide for emergency expenses arising from the consequences of the recent heavy rains and flooding along the Mississippi River, particularly in the Upper Midwest. I ask further that the legislation in which these funds are provided be kept free of extraneous matters in order that there may be a minimum of delay in providing necessary funds to the disaster areas.

I hereby designate the following requests as emergency requirements pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985, as amended:

Department of Agriculture, Commodity Credit Corporation, Commodity Credit Corporation fund: $600,000,000;
Department of Agriculture, Agricultural Stabilization and Conservation Service, Emergency conservation program: $20,000,000;
Department of Agriculture, Soil Conservation Service, Watershed and flood prevention operations: $25,000,000;
Department of Defense - Civil, Corps of Engineers, Flood control and coastal emergencies: $45,000,000;
Department of Housing and Urban Development, Community Planning and Development, Community development grants: $3,000,000;
Department of Transportation, Federal Highway Administration, Federal-aid highways: $100,000,000;
Department of Transportation, United States Coast Guard, Operating expenses: $5,000,000;
Small Business Administration, Disaster loan program account: $70,000,000; and
Federal Emergency Management Agency, Disaster relief: $550,000,000.

The details of these requests are set forth in the enclosed letter from the Director of the Office of Management and Budget. I concur with the Director's comments and observations.

Sincerely,

Enclosure

Estimate No.
103rd Congress, 1st Session

The President

The White House

Submitted for your consideration are requests for FY 1993 supplemental appropriations to cover emergency expenses arising from the consequences of the recent heavy rains and flooding along the Mississippi River, particularly in the Upper Midwest. The requested funds, totaling $2,482 million in budgetary resources for FY 1993, are in addition to the $100 million in previously appropriated funds that you made available to the Department of Agriculture's Commodity Credit Corporation disaster assistance fund on July 4th.

In response to your direction, Federal agencies are working together to deliver disaster assistance to the victims of the flooding along the Mississippi River. We have carefully reviewed these activities to determine which agencies require additional resources to carry out these activities. The estimates are necessarily preliminary, and we will work with the Congress to update these estimates as the bill moves forward.

The supplementals requested are as follows:

For the Commodity Credit Corporation fund, $600 million is requested to be made available immediately, and an additional $300 million to be made available only upon the submission of a later budget request designated by you as an emergency requirement. The additional funds would enable the Commodity Credit Corporation to make disaster payments to farmers who have suffered losses from natural disasters in 1993, including the Midwest floods. Each claim would be funded at the previously used rate of 50.04 percent.

          In addition, authority is requested to use other 
          Commodity Credit Corporation funds if the requested 
          funds are not adequate to provide the 50.04 percent 
          level of assistance for 1993 disasters.

     o    For the Department of Agriculture's emergency 
          conservation program, $20 million.  These funds would 
          assist farmers with debris cleanup and the restoration 
          of damaged farmland.

For the watershed and flood prevention operations program of the Department of Agriculture, $25 million. The funds would be used to safeguard lives and property in jeopardy due to sudden watershed impairment from the Midwest floods. Specific uses include the repair of over-topped levees, dikes, and other flood retarding structures and the opening of water courses plugged with sediment and debris.
For the Economic Development Administration within the Department of Commerce, $100 million for disaster assistance grants to State and local units of government for economic recovery strategy, technical assistance, and public works grants. The entire amount would be contingent upon your transmitting, at a later time, a formal budget request to the Congress designated as an emergency requirement.
For the Army Corps of Engineers, $45 million to repair damage to flood control works within the Upper Mississippi River Basin. An additional $20 million is being requested to be made available contingent upon your submission of a later budget request to the Congress designated as an emergency requirement. After the flood subsides, the Corps will play an active role in cleanup of debris and repair of levees and other flood control systems.
For the public health emergency fund of the Department of Health and Human Services, $4 million, which would be available only upon the transmittal to the Congress of an official budget request designated by you as an emergency requirement. The funds would be used for the repair and renovation of community health centers and migrant health centers damaged by the Midwest floods.
For the Department of Housing and Urban Development's community development grants program, $3 million designated as an emergency requirement at this time and $50 million to be made available upon a later emergency designation in a formal budget request to the Congress. The $3 million request is for disaster recovery planning with State and local agencies, and the $50 million is for disaster-related community development.
For the HOME investment partnerships program, $100 million, contingent upon the transmittal to the Congress of an official budget request designating the entire amount of the request as an emergency requirement. The resources would enable the Department of Housing and Urban Development to provide additional funds for a variety of housing activities, including acquisition, rehabilitation, tenant-based rental assistance, and new construction.
For the Federal Highway Administration's emergency relief program, $100 million. This program allows the Secretary of Transportation to provide immediate assistance to States whose highways and bridges may be damaged during a natural disaster.
For operating expenses of the Coast Guard, $5 million. These funds would be used to: purchase emergency supplies in support of the heightened levels of Coast Guard operations; cover the cost of temporary active duty travel, including the limited call-up of Coast Guard Reservists; and repair, restore, and replace lost or damaged aids to navigation.
For the Small Business Administration's (SBA's) Disaster loan program account, $70 million. These additional resources would support $300 million in SBA disaster loans and would fund associated administrative expenses. These low-interest loans would be made primarily to homeowners, renters, and business owners to assist in their recovery from physical damage caused by the flooding in the Midwest. In addition, some of the loans would be made to firms engaged in agriculture-related activities that have suffered substantial economic injury due to farm damage.
For the disaster relief fund administered by the Federal Emergency Management Agency (FEMA), $550 million. These resources would enable FEMA to provide funds for the repair of public facilities and for housing and other assistance to those affected by the Midwest flooding. In addition, $250 million is being requested to be made available contingent upon the submission of a later budget request designated as an emergency requirement.

In addition to these items for which additional appropriations are requested, many agencies are providing assistance within existing resources. Examples follow:

The Department of Defense, through the Army Corps of Engineers, is providing pumps, sandbags, and other equipment. The Corps has activated its emergency operations center.
Several thousand National Guard personnel have been called to active State duty to help in the disaster.
Small Business Administration specialists are on site to explain to homeowners, renters, and business owners the disaster assistance that is available and to help flood victims process their applications.
USDA staff are available to process applications to provide assistance for crop losses and losses from prevented plantings.
The Farmers Home Administration (FmHA) will waive various administrative requirements in disaster areas to streamline emergency loan processing. FmHA will authorize a moratorium on FmHA housing loan payments to assist borrowers whose homes or employment have been affected by the disaster.
FEMA personnel are on the ground assisting local authorities with either preparedness or recovery efforts. Disaster application centers are open to process applications for disaster relief.
The Department of Health and Human Services (HHS) is in contact with affected States and local jurisdictions and has found that there are no major public health threats that are not being addressed by State and local agencies at this time. HHS staff have concerns about potential public health threats after the floodwaters recede. The Centers for Disease Control is consulting with State health departments on these and other health issues.

I have carefully reviewed the supplemental requests and am satisfied that they are necessary at this time. Therefore, I join the heads of the affected agencies in recommending that these proposals be transmitted to the Congress. In addition, except for the items noted above -- totaling $824 million -- that are contingent on further action, I recommend that you designate all of the items as emergency funding requirements pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

Sincerely,

                              Leon E. Panetta
                              Director

Enclosures

FACT SHEET ON PRESIDENT'S DISASTER RELIEF LEGISLATION

$600 million for USDA for Commodity Credit Corporation for disaster payments to farmers, with an additional $300 million available on a contingency basis if needed. Claims will be funded at the rate of 50.04 percent, as in previous disasters.

$20 million for USDA's emergency conservation program, to assist farmers with cleanup and restoration of damaged farmland, and $25 million for its watershed and flood prevention operations to safeguard lives and property, including levees and dikes.

$550 million, and another $250 million available on a contingency basis if needed, for the Federal Emergency Management Agency's disaster relief fund. These resources would enable FEMA to provide funds for the repair of public facilities and for housing and other assistance for flooding victims.

$70 million for the Small Business Administration's disaster loan program, which supports nearly $300 million in low-interest disaster loans, primarily for homeowners, renters, and business owners to assist in their recovery from physical damage. Also, some loans would be made to firms in agriculture-related activities that have suffered substantial economic injury due to farm damage.

$45 million for the Army Corps of Engineers to repair damage to flood control works within the Upper Mississippi River Basin. An additional $20 million on a contingency basis. The Corps will help to clean up debris and repair levees and other flood control systems.

$100 million for the Federal Highway Administration's emergency relief program for the Secretary of Transportation to provide immediate assistance to States whose highways and bridges are damaged. Also, $5 million for the Coast Guard to purchase emergency supplies; pay for temporary active duty travel, including the limited call-up of Coast Guard Reservists; and repair, restore, and replace lost or damaged aids to navigation.

$3 million, with $50 million on a contingency basis, for HUD's community development grants program to support disaster recovery efforts.

$100 million, all on a contingency basis, for HUD's HOME investment partnerships program to enable HUD to provide additional funds for a variety of housing activities, including acquisition, rehabilitation, tenant-based rental assistance, and new construction.

$4 million, on a contingency basis, for HHS's public health emergency fund for repair and renovation of community health and migrant health centers damaged by the floods.

$100 million, on a contingency basis, for the Commerce Department's Economic Development Administration disaster assistance grants to State and local governments for economic recovery strategy, technical assistance, and public works.

In addition to these items for which additional appropriations are requested, many agencies are providing assistance within existing resources.

SUPPLEMENTAL APPROPRIATIONS FOR FLOOD-RELATED DISASTER ASSISTANCE

FEMA:                    $550 million for Disaster Relief Fund 
                         (individual and public assistance grants); 
               
                         $250 million contingency funding

Coast Guard:             $5 million for operating expenses.  Will 
                         support heightened levels of Coast Guard 
                         operations, Temporary Active Duty travel 
                         expenses, and repair navigation aids.

Federal Highways:             $100 million for repairs.

Corps of Engineers:           $45 million for emergency flood control 
                              works repairs.
                 
                         $20 million contingency funding 

Agriculture:                  $600 million for crop losses (in addition 
                              to $100 m released by the President on 
                              7/4)

                -        $300 million contingency funding for crop 
                         losses

                         $20 million for Emergency Conservation

                         $25 million for Soil Conservation Service, 
                         Watershed and Flood Prevention

SBA:                     Supports $300 million in disaster loans.  $10 
                         million is requested for SBA staff and $60 
                         million for subsidy budget authority for the 
                         loans.

HUD:

     CDBG                     $3 million for disaster recovery planning 
                              with states/locals

     CDBG                $50 million contingency funding for  disaster-
                         related community development 
     
     HOME      $100 million contingency funding for construction/rehab 
               of damaged low-income housing
Commerce:
     EDA                      $100 million contingency funding for 
                              economic redevelopment

HHS:

     Public Health            $4 million contingency funding for Public 
                              Health Emergency Fund

          Subtotal of Budgetary Resources:   $1,658 million
               Subtotal of Contingency Funding:   $   824 million 
                 Total Supplemental Request  $2,482 million

          CLINTON ADMINISTRATION FLOOD RELIEF EFFORTS TO DATE

     Representatives of federal agencies have been meeting frequently

at the White House to discuss the midwestern flooding and the coordinated federal response. Agencies participating in the process have included the Federal Emergency Management Agency, OMB, Department of Agriculture, Department of Transportation (Federal Highway Administration and Coast Guard), Department of Defense (Army Corps of Engineers and Army National Guard), Small Business Administration, and Department of Housing and Urban Development, as well as senior White House Staff members. Daily conference calls have been held to supplement these meetings. In addition, on July 9, Vice President Gore conducted a conference call with the Governors of the affected States in the Midwest to discuss efforts in each of their states.

The President first traveled to the region on July 4 to survey the Davenport, IA disaster area. Additionally, Secretary Espy visited Hartwick, Minnesota, as well as Waterloo, Dumont and Sioux City, Iowa on June 30. The Secretary also participated in an aerial tour of Wisconsin. On July 2, Secretary Pena visited St. Louis Missouri, and participated in an aerial survey of Moline, Iowa. On July 3, FEMA Director James Lee Witt surveyed damage in Wisconsin and announced the Presidential Disaster Declaration for that state. On July 12, Vice President Gore and Director Witt visited Illinois, Missouri, and Iowa. Director Witt has remained in the region through today.

Disaster Preparedness Assistance and Immediate Response

FEMA personnel are on the ground in Iowa, Wisconsin, North Dakota, Missouri, Illinois, Minnesota, and Nebraska. In the five states where disasters have been declared (IA, MN, WI, IL, and MO), FEMA officials are assisting local authorities with recovery efforts. In South Dakota, Kansas, and Nebraska, FEMA officials are assisting local officials with Preliminary Damage Assessments. FEMA has opened eighteen Disaster Application Centers (DACs) in the five states where disasters have been declared to provide one stop recovery coordination.
Army Corps of Engineers has deployed 433 personnel in five states to assist in the fortification of levees, flood walls, and other flood fighting activity. These efforts are coordinated with the 6,000 National Guard troops working in the area.
USDA, through Farmers Home Administration, is making emergency shelter available, restructuring existing loan payment obligations, and providing low interest loans.

(more)

Clinton Administration Flood Relief
page two

Secretary Espy has exercised various disaster and farm program authorities invested in the Secretary of Agriculture in several dozen counties in the five state area, to help relieve crop losses and losses from prevented plantings.

Long Term Response

The White House has initiated the coordination of the necessary long term recovery assistance, including identifying the needed supplemental appropriations, which are being sent to Congress today.
USDA is preparing legislation to reform the crop insurance program.
SBA will be providing low interest loans to those businesses affected by non-agriculture losses. SBA also provides individual loans to persons experiencing private loss due to flooding.
The Coast Guard is assisting with waterway safety and is prepared to begin moving river traffic as soon as the water recedes to a safe level.
The Army Corps of Engineers is working with state and local authorities to develop and implement long term flood control strategies.

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