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Office of Management and Budget
News Release



President Bush Proposes $20 Billion Emergency Spending Measure to Provide for the Disaster Recovery and Security Needs Related to the Attack on America

This Release Brings Total Spending for New York to Nearly $9 Billion

Washington, DC, October 17, 2001 -- President George W. Bush submitted to Congress today legislation to allocate $20 billion for the disaster recovery and security needs related to the September 11th terrorist attack on America. On September 18, the President signed into law legislation providing $40 billion in emergency appropriations to respond to the attacks. For $20 billion of this amount, the Congress gave the President the authority to spend the funds on activities directly related to responding to the attacks without additional congressional action. To date, the Administration has made three such transfers of spending totaling $7.2 billion to the Department of Defense, the Federal Emergency Management Administration, the Department of Justice, and other agencies.

This fourth installment brings the total amount released from the $40 billion emergency fund to $27.2 billion. Approximately $9 billion of these funds are for New York, $9 billion are for defense and international affairs, and $9 billion are for disaster recovery in other states and homeland security, including aviation security, bio-terrorism treatment and law enforcement initiatives. For this funding to be released, Congress must pass legislation for the President’s signature.

"This funding installment aggressively addresses the nation's most critical, immediate problems: fighting terrorism abroad, defending Americans in our homeland, and repairing the damage evil has done in New York and elsewhere," said Office of Management and Budget Director Mitchell E. Daniels, Jr.

This $20 billion funding request consists of: $6.3 billion for New York’s recovery needs, $7 billion for waging war on terrorism, and $6.9 billion for all other disaster response and homeland security needs.

It is not the Administration’s intention to seek additional supplemental funding for either domestic or defense needs for the remainder of this session of Congress. The Administration will continue to work with the agencies to determine additional funding needs during the second session of the 107th Congress. However, this process is complicated by the scope of the undertaking and the many unknowns at this time, including the amount of private insurer liability, cost of debris removal, and infrastructure repair.


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