This week, the U.S. Congress has finally reached a consensus on the government spending bill, allocating over a trillion dollars for emergency aid to address the extensive damages caused by natural disasters.
The funds will be used to assist with the severe destruction caused by the consecutive hurricanes, Helene and Milton, hitting the southeastern United States this fall. However, according to the bill signed by President Joe Biden on Saturday, December 21, this funding will also be used to keep the federal government running until March 14.
President Biden stated in a press release that the bill provides “much-needed disaster relief funds for community recovery and the reconstruction of the Francis Scott Key Bridge in Baltimore.” The bridge collapsed in March after being struck by a large container ship that lost power and veered off course.
Here are some details from the government spending bill regarding disaster relief and the allocation of funds:
The Federal Emergency Management Agency’s (FEMA) disaster relief fund is essentially money provided by the nation. The agency uses this fund to reimburse states and local governments for expenses such as debris removal after hurricanes, or overtime pay for firefighters and police working during disasters.
The fund also includes individual assistance payments, with some victims eligible to receive $750, while uninsured homeowners can receive around $42,500 to help rebuild their homes.
The city of Asheville, the largest city in the mountainous region of North Carolina, was heavily impacted by Hurricane Helene. Mayor Esther Manheimer expressed great satisfaction upon seeing the additional relief funds allocated for the city’s recovery efforts.
Up until four weeks ago, residents of Asheville could only use water from faucets for drinking and bathing. Some businesses in western North Carolina either permanently closed or are struggling to stay afloat. Additionally, over two hundred roads in the region remain closed.
Mayor Manheimer emphasized in an earlier statement this week that the road to recovery is long and they’ve seen the long-term effects on the economy, budget, and employment caused by Hurricane Helene.
Following hurricanes Helene and Milton, the disaster relief funds were nearly depleted. FEMA Director Deanne Criswell warned at a Senate hearing in November that the relief fund had dwindled to $5 billion.
Although the Biden administration requested around $40 billion in disaster relief funds from Congress, the final bill only provided $29 billion.
Stan Gimont, a senior consultant at Hagerty Consulting responsible for community recovery, stressed the importance of remembering that the current funding is not sufficient for the disaster relief fund’s needs. He previously managed the Community Development Block Grant program at the Department of Housing and Urban Development.
He mentioned that Congress may allocate more funds to the relief fund during future annual appropriations.
Approximately $21 billion in disaster assistance funds will be used to help farmers.
North Carolina’s Agriculture Commissioner Steve Troxler expressed pleasure earlier this week upon receiving agricultural aid. However, he noted that many specialty crops in the state, such as sweet potatoes and Christmas trees, are typically not covered under federal assistance programs. He stated that he will have to wait to see the specific relief coverage.
“We are still evaluating the bill because there are many nuances; the devil is in the details,” he said.
Other funds will be used for rebuilding damaged roads and highways ($8 billion), with additional funding (around $12 billion) allocated through the Department of Housing and Urban Development to aid in post-disaster community reconstruction.
For homeowners without insurance or whose insurance amounts are insufficient for post-disaster rebuilding, the entire funding is a crucial source of financial support.
Furthermore, $2.2 billion will be used to provide low-interest loans for businesses, nonprofits, and homeowners for post-disaster rebuilding, though these funds are not solely for local residents.
For example, this funding will assist the military in repairing damages caused by hurricanes and typhoons, purchasing new hurricane hunters (aircraft used in hurricane research), and aiding NASA in rebuilding facilities damaged by hurricanes.
Is this money only for post-disaster rebuilding after hurricanes Helene and Milton? The answer is no; this money is not restricted to addressing these two disasters.
Some funds are designated for specific projects, such as $1.5 billion for assisting with New Mexico’s largest wildfire ever – the Hermit’s Peak/Calf Canyon Fire – and rebuilding the Francis Scott Key Bridge.
A significant portion of the funds is allocated to addressing major disasters that have occurred in recent years. The types of disasters covered by the disaster relief bill include droughts, wildfires, hurricanes, floods, landslides, and smoke.
Gimont pointed out that post-disaster recovery may take a long time, so the federal government must prepare for future potential disasters while also footing the bill for past disasters.
Take last year’s massive fire on Maui in Hawaii, for example. The fire destroyed Lahaina in Maui, and Gimont stated that cleanup efforts alone will continue until the end of summer 2024.
This article references reports from the Associated Press.