WASHINGTON – The Senate today approved $23 billion in disaster assistance for victims of the Midwest floods, Hurricanes Ike and Gustav, California wildfires, and other natural disasters this year. The bill also included a continuing resolution to keep the federal government working through March 6 as well as appropriations for defense and homeland security. It will now be sent to the president to be signed into law.
Grassley said that the funding will be used for disasters across the nation, and most of the funding will be allocated proportionally based on the amount of damage that each state incurred. Because of the devastation of the Midwest floods, Grassley expects that Iowa will receive a good sum of money.
“This is welcome news for Iowans who have been patient with Congress’ inaction for three months. And, while these funds are greatly needed, it doesn’t do justice to the heartbreak and hurt that Iowans feel,” Grassley said. “Iowans are working to get their lives back on track, and this funding will be a big boost to people who are hurting.”
The package includes $182 million for a new federal courthouse for Cedar Rapids, $6.5 billion for Community Development Block Grants that will provide flexible assistance with housing and business needs, $400 million for the Economic Development Administration for infrastructure improvements to provide jobs and protect businesses, $508 million for the Small Business Administration for loans and small business development centers, and $600 million for the Social Services Block Grant Program to help provide urgently needed services including food, shelter, clothing, health care and mental health services to people living in states hit by disasters. Several programs at the U.S. Department of Agriculture also received funding through this measure including $100 million for the Emergency Watershed Protection program, $115 million for the Emergency Conservation Program, and $313 million for Rural Development to provide assistance with housing, utilities, and community facilities for rural areas. Funds are also provided in this legislation to help education entities recover and for the U.S. Army Corps of Engineers to rebuild levees. The legislation also replenishes the general FEMA Disaster Relief fund with $7.9 billion.
Grassley is also working on separate legislation that would provide tax relief to victims of this year’s natural disasters, including the Iowa floods. As chairman of the Senate Finance Committee when Hurricane Katrina hit the Gulf Coast, Grassley shepherded tax legislation through the Congress within three weeks that gave preferable tax treatment to victims. The Republican Congress also passed $60 billion in appropriations within a week.
“I’ve had new disaster tax relief legislation written for months, but the Democratic led House of Representatives has yet to act upon it. Instead, the House passed a bill that dilutes and minimizes disaster tax relief over the entire country, over four years, this year through 2011. That’s measly for the Midwest, and insulting to Iowans,” Grassley said. “We deserve equitable treatment. The House tax relief bill is a lot of nothing for Iowa.”
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