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THE WHITE HOUSE

Office of the Press Secretary


For Immediate Release June 23, 1994

STATEMENT BY THE PRESS SECRETARY

The President today notified the Congress that he will make available an additional $45.6 million for the Departments of Commerce, Health and Human Services, Housing and Urban Development, and the Interior to assist in the recovery from the January 17th earthquake in southern California.

The package includes $30 million for the Economic Development Administration in the Commerce Department for assistance to viable businesses that do not qualify for Small Business Administration (SBA) assistance. The funds will be used to provide grants to not-for-profit community development organizations and other institutions, which will aid businesses in restructuring their debt so that they can qualify for SBA assistance.

In addition, the package approved by the President includes: $7.5 million to be allocated to the National Institute of Standards and Technology and the U.S. Geological Survey, as part of the National Earthquake Hazards Reduction Program; $4.1 million for the Centers for Disease Control and Prevention to address earthquake-related public health threats; and $4.0 million for the Department of Housing and Urban Development to help displaced families locate suitable housing.

These emergency funds come from the $550 million contingency fund provided to the President under Public Law 103-211, the Emergency Supplemental Appropriations Act of 1994, to support emergency disaster needs. The funds will be available to the agencies in 15 days.

"As earthquake recovery efforts have continued, the President's contingency fund has enabled our Administration to respond to unforeseen problems," the President said. "Most of the funds I am releasing today will help small business people in southern California who have had difficulty obtaining assistance until now."

Combined with the amounts previously designated by the President for emergency use from this fund, a total of $507.6 million has now been designated to be released, leaving $42.4 million remaining in the fund.

Since the January earthquake, the President and the Congress have authorized a total of $11.8 billion in earthquake recovery assistance for the people and the local and state governments of California.

Following are the details of the distribution of the new funds:

DEPARTMENT OF COMMERCE

ECONOMIC DEVELOPMENT ADMINISTRATION

       Economic development assistance 
       programs........$30,000,000
  
       This $30 million will enable the Economic 

Development Administration to provide assistance to businesses in the areas adversely affected by the January 17th earthquake. These funds will support debt restructuring through financial intermediaries for viable businesses that have been rejected for disaster assistance administered by the Small Business Administration (SBA). This debt restructuring will, in turn, help these firms to qualify for SBA assistance.

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

Scientific and technical research and services...$3,000,000

As part of the National Earthquake Hazards Reduction Program, $3 million will be provided to the National Institute of Standards and Technology (NIST). NIST will use these funds to: (1) study large fires caused by earthquakes and develop techniques to minimize these fires and the damage done by them ($1.5 million); and (2) develop construction standards for liquid fuel systems with special focus on critical control systems and rapid restoration ($1.5 million).

DEPARTMENT OF HEALTH AND HUMAN SERVICES

CENTERS FOR DISEASE CONTROL AND PREVENTION

       Disease control, research, and 
  training..........$4,050,000
  
       These funds will enable the Centers for Disease 

Control and Prevention to address earthquake-related public health threats. Funds will be applied to environmental health programs in support of food, water, sanitation, and safety issues and to control programs for animal-borne diseases.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING PROGRAMS

       Annual contributions for assisted 
  housing........$4,000,000
  
       This $4 million will be used to support Mobility 

Teams and will supplement the $1 million made available for this program by the President on March 18, 1994. Mobility Teams work with recipients of emergency Section 8 certificates to find suitable housing and to promote self-sufficiency by making referrals to existing services, including vocational skills and job training, child care, and credit counseling.

DEPARTMENT OF THE INTERIOR

U.S. GEOLOGICAL SURVEY

       Surveys, investigations and 
  research.............$4,500,000
  
       As part of the National Earthquake Hazards 

Reduction Program, $4.5 million will be provided to the U.S. Geological Survey. These funds will be used to: (1) harden and upgrade earthquake detection equipment in order to improve emergency responses to future earthquakes; and (2) communicate to State and local government planners and decision-makers the scientific lessons learned from the January 17th earthquake so that new construction can better protect life and property.

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