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THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release February 28, 2000

                               FACT SHEET
                           February 25, 2000

                  Federal Response to Hurricane Floyd

Overview
- The President is asking Congress to approve an additional $347 million in FY2000 to continue recovery efforts in States affected by the Hurricane Floyd. This includes $223 million requested on February 7th, and $124 million being requested today for USDA, HUD, and the Army Corps of Engineers.

The Federal Government previously has made available over $2.6 billion in grants and loans to assist states affected by Floyd recover from flooding and other agricultural disasters. (These grants and loans are available in affected states, but not all available funding has yet been disbursed.) Funds are derived from FY 2000 enacted appropriations, both regular appropriations and supplementals contained in the November 1999 consolidated appropriations bill. Among Federal agencies, USDA, FEMA, and SBA have provided the bulk of disaster assistance.
If the $347 million request is enacted, nearly $3 billion in total Federal resources will be available to help states affected by Floyd recover from storm damage and agricultural disasters.

HIGHLIGHTS BY MAJOR AGENCY/ACTIVITY

Federal Emergency Management Agency (FEMA): - Supplemental Request (2/7): Proposes $77 million (on top of $215 million appropriated for this purpose last year) to fully fund all remaining eligible buyouts of damaged homes in the 100-year flood plain.

Prior Action: To date, FEMA has made available $1.5 billion in Floyd assistance, including buyouts of flood-damaged homes, flood insurance payments to insured homeowners and businesses, payments for temporary housing assistance, and grant assistance to repair damaged public buildings and infrastructure.

Small Business Administration (SBA):
- Supplemental Request (2/7): SBA issues low interest loans for storm-damaged homeowners and businesses. The $51 million supplemental for loan subsidy and administrative costs will allow SBA to support an additional $141 million in loans. In total, SBA expects to issue $600 million in loans for those damaged by Floyd.

Prior Action: Thus far, SBA has made $459 million available for Hurricane Floyd victims.

Commerce: Economic Development Agency (EDA): - Supplemental Request (2/7): The Administration is seeking $25 million to enable EDA to work with development districts and states to plan long-term economic development and recovery in areas affected by Hurricane Floyd. EDA funding supports planning and technical assistance grants, economic development loans made by local organizations, and grants for infrastructure repair and improvements.

Commerce: National Oceanic and Atmospheric Administration (NOAA): - Supplemental Request (2/7): The Administration is seeking $13 million to make payments to fishermen affected by Floyd and other hurricanes ($11 million) and to repair a NOAA facility ($2 million) in Beaufort, North Carolina.

Army Corps of Engineers:
- Supplemental Request(2/7): The Administration is seeking $19 million to address dredging and emergency navigation work related to Hurricane Floyd.

Supplemental Request (2/25): The package going to Congress today requests an additional $1.5 million in emergency funding to undertake a feasibility study evaluating flood damage reduction options for the town of Princeville, North Carolina, which was devastated by floods caused by Hurricane Floyd. The study and report to Congress will provide the engineering, economic, and environmental analyses needed to determine how best to provide future flood protection for this area.
The President's FY2001 Budget requests $2 million for restoring selected North Carolina beaches.

Interior:
- Supplemental Request (2/7): The Administration is seeking $11 million for the U.S. Geological Survey ($2 million) to repair and replace stream monitoring equipment and structures, the Fish and Wildlife Service ($5 million) to repair damaged and destroyed property, and the National Park Service ($4 million) to replace damaged structures, facilities, and other park infrastructure.

Defense:
- Supplemental Request (2/7): The Administration is seeking $27 million to repair defense facilities affected by Hurricane Floyd, including buildings, roads, and other infrastructure.

Department of Agriculture:
USDA assistance includes agricultural grants directed at livestock and crop losses; emergency and operating agricultural loans made available to meet high priority needs; and assistance in repairing and constructing replacement rural housing.

Supplemental Request (2/25): The Administration is seeking USDA assistance of $111 million in a package being sent to Congress today:

Authorization to forgive up to $81 million in USDA commodity price-support loans made to producer-owned marketing associations that suffered losses to their commodity collateral from Hurricanes Floyd or Dennis, or Irene. In some cases, crops were damaged by natural disaster after the associations had purchased them from member-producers. These crops cannot be sold by the associations at the price they paid producers for them and, in order to repay the USDA loan, the member-producers would have to pay to cover the losses. Forgiving a portion of the loan would reduce or eliminate these additional producer payments.
$15.9 million to support $40 million in low-interest loans to construct 1,000 units of rural rental housing for low-income residents who were displaced from their homes or rental units by the hurricanes.
$13.6 million in rental assistance for the new units constructed, which will ensure that eligible low-income tenants pay no more than 30 percent of their income for housing.
Authorization to allow previously appropriated Emergency Conservation Program funds to be used for repairing farm structures and equipment damaged by Hurricanes Floyd or Dennis, or Irene.
Prior Action: Utilizing $515 million in previously enacted budget authority, USDA has made over $680 million in disaster grants and loans available to the States hardest hit by Floyd.
USDA's FY 2001 Budget request will increase Sec. 504 housing repair loans by $8 million and grants by $5 million over enacted, which should be sufficient to meet any remaining unmet national need. (The emergency supplemental in the FY 2000 appropriations bill provided $15 million in loans.)

Housing and Urban Development:
- Supplemental Request (2/25): In the package being sent to Congress today, the Administration is seeking $12 million in emergency funding for HUD to support approximately 2,000 additional housing vouchers to assist families displaced from their homes by damage from Hurricane Floyd or other recent natural disasters.

Prior Action: HUD has allocated $15 million in FY00 funding to rebuild Floyd-damaged public housing units in New Jersey ($3.4 million) and North Carolina ($11.6 million).

Assistance to North Carolina in the FY2000 Floyd Supplemental

Based on current estimates of the remaining unmet assistance need associated with Floyd and other recent storms, approximately $252 million of the $347 million supplemental request will be available for North Carolina. This budget authority would allow about $307 million in grants, loans, and repairs to be available for North Carolina. These amounts are not formal allocations, and the final distribution will depend on the number and location of eligible applicants for each program.
Out of enacted funds to date, USDA, FEMA, SBA, and HUD have made available to North Carolina over $1.8 billion in disaster assistance grants and loans. The supplemental funding would raise this level to almost $2.2 billion.

HIGHLIGHTS BY MAJOR AGENCY/ACTIVITY

Federal Emergency Management Agency (FEMA): - Supplemental Request (2/7): Approximately $68 million in additional funding will fully fund all remaining eligible buyouts of damaged homes on the 100-year flood plain in North Carolina.

Prior Action: Approximately $985 million in FEMA assistance has been made available in North Carolina, including buyouts of flood-damaged homes, flood insurance payments to insured homeowners and businesses, payments for temporary housing assistance, and grant assistance to repair damaged public buildings and infrastructure.

Small Business Administration (SBA):
- Supplemental Request (2/7): SBA issues low interest loans for storm-damaged homeowners and businesses. The supplemental will provide an estimated $40 million (about $9 million in BA) to North Carolina, sufficient to cover the remaining demand for homeowner/business loans. In total, SBA expects to issue $450 million in loans for those damaged by Floyd in North Carolina.

Prior Action: Thus far, SBA has made $410 million available for Hurricane Floyd victims in North Carolina alone.

Commerce: Economic Development Agency (EDA): - Supplemental Request (2/7): Within the supplemental proposal, approximately $20 million will be used for EDA to work with North Carolina on long-term economic development and recovery in areas affected by Hurricane Floyd.

Commerce: National Oceanic and Atmospheric Administration (NOAA): - Supplemental Request (2/7): Includes $6 million to make payments to North Carolina fishermen affected by Floyd and other hurricanes and $2 million to repair a NOAA facility in Beaufort, North Carolina.

Army Corps of Engineers:
- Supplemental Request (2/7): Includes $10.7 million for dredging and emergency navigation work in North Carolina.

Supplemental Request (2/25): The package going to Congress today requests an additional $1.5 million in emergency funding to undertake a feasibility study evaluating flood damage reduction options for the town of Princeville, North Carolina, which was devastated by floods caused by Hurricane Floyd. The study and report to Congress will provide the engineering, economic, and environmental analyses needed to determine how best to provide future flood protection for this area.
The President's FY2001 Budget requests $2 million for restoring selected North Carolina beaches.

Interior:
- Supplemental Request (2/7): Approximately a quarter of the $11 million request for replacing damaged agency structures, facilities, and park infrastructure would be for sites in North Carolina.

Defense:
- Supplemental Request (2/7): Within the supplemental, $10.8 million is for repairing damaged defense facilities in North Carolina, primarily the Marine Corps Air Station at New River.

Department of Agriculture:

USDA assistance includes agricultural grants directed at livestock and crop losses; emergency and operating agricultural loans are being made available to meet high priority needs; and assistance in repairing and constructing replacement rural housing. Supplemental Request: The Administration is seeking in a package being sent to Congress today:

Authorization to forgive up to $81 million in USDA commodity price-support loans made to producer-owned marketing associations that suffered losses to their commodity collateral from Hurricanes Floyd or Dennis, or Irene. Nearly all benefits accrue to North Carolina associations.
$15.9 million to support $40 million in low-interest loans to construct 1,000 units of rental housing for low-income rural residents who were displaced from their homes or rental units by the hurricanes, mostly in North Carolina.
$13.6 million in rental assistance for the new units constructed, mostly in North Carolina, which will ensure that eligible low-income tenants pay no more than 30 percent of their income for housing.
Authorization to allow previously appropriated Emergency Conservation Program funds to be used for repairing farm structures and equipment damaged by Hurricanes Floyd or Dennis, or Irene.
Prior Action: Utilizing previously enacted budget authority, USDA has made over $446 million in disaster grants and loans available to North Carolina victims of Floyd and other agricultural disasters.
USDA's FY 2001 Budget request will increase Sec. 504 housing repair loans by $8 million and grants by $5 million over enacted, which should be sufficient to meet any remaining unmet national need.

Housing and Urban Development:
- Supplemental Request: In the package being sent to Congress today, North Carolina would receive most of the Administration's $12 million request for emergency funding for HUD to support approximately 2,000 additional housing vouchers to assist families displaced from their homes by damage from Hurricane Floyd or other recent natural disasters.

Prior Action: HUD has allocated $15 million in FY00 funding to rebuild Floyd-damaged public housing units in New Jersey ($3.4 million) and North Carolina ($11.6 million).

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