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Office of Management and Budget
News Release
FOR IMMEDIATE RELEASE
November 1, 2001 |
2001-56 |
Administration Announces Additional Assistance for New
York Economic Recovery
Washington, DC -- Office of Management and
Budget Director Mitchell E. Daniels, Jr., announced today a $2.8 billion
economic assistance package for New York. This economic assistance package
will allow New York to target aid to businesses affected by the terrorist
attacks on the World Trade Center and to assist in the City’s economic
recovery. "The President has authorized support for New York unprecedented
in both scope and cost. Cleanup, rebuilding and victim assistance will dwarf
that provided in any previous catastrophe. Today the President is moving on
yet another front. New York presented a variety of creative ideas aimed at
economic recovery, and we are pleased to be able to take action on three of
these requests," Daniels stated.
The $2.8 billion assistance package is the result of consultations
with Governor Pataki, Mayor Giuliani, Senator Clinton, Senator Schumer and
the bi-partisan members of the New York House Congressional delegation to
determine needs and priorities. The package is designed to assist New York in
its efforts to mitigate the potential loss of businesses and jobs from Lower
Manhattan.
This assistance is the latest installment of federal support to the
New York area to deal with the effects of the September 11th terrorist
attacks. Previous supplemental releases have included funding for emergency
response, debris removal, and public infrastructure repair. Pursuant to the
President’s $20 billion commitment to deal with the effects of the attacks,
the total federal assistance either enacted or proposed now stands at over
$14 billion.
The economic assistance package comprises three elements. Each of
these actions was specifically requested by state and local officials, and
each will require a special exemption to existing law.
- $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 CDBG’s 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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