Office of Management and Budget
|FOR IMMEDIATE RELEASE
November 1, 2001
Administration Announces Additional Assistance for New York Economic Recovery
- $700 million in funding for the Community Development Block Grants program (CDBG). The $700 million grant to New York will be the largest grant made in CDBGs history. The administration is working with Representative Walsh and Senator Schumer to secure a one-time change to the existing CDBG law, which ordinarily precludes the program from funding high-income areas. These CDBG grants will allow New York to target assistance to businesses affected by the disaster. These funds will be provided out of the $40 billion emergency supplemental appropriations act already enacted.
- $2 billion in tax-exempt financing. The funds would be used for New York City as a means to finance the replacement of commercial office space lost to the terrorist attacks in Lower Manhattan. For reference, this would more than double the total amount of tax-exempt private activity bonds available for the entire State of New York. This proposal will also require enabling legislation.
- $110 million in savings to the State and City through regulatory relief from federal mandates on the Temporary Assistance for Needy Families and food stamp programs. United States Department of Agriculture (USDA) will provide New York with additional Food Stamps and Employment Training funds to assist unemployed workers. The administration will seek legislation to allow New York to utilize unspent TANF funds without a maintenance of effort requirement. Additionally, Department of Health and Human Services (HHS) will provide New York with a waiver allowing it to extend the duration of emergency homeless assistance under the TANF program.
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