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Obama proposes $60 billion aid for New York, New Jersey Sandy recovery


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WASHINGTON — President Obama asked Congress Friday for $60.4 billion to help New York and other battered states recover from Hurricane Sandy.

The emergency request falls short of the $82 billion the states sought — but it surpasses the $50 billion that the White House hinted earlier this week that it might seek.

If approved by Congress, the package would provide badly needed money to repair the subway system, help homeowners and businesses rebuild, and reimburse the city for the cost of police and other services.

But the President’s request would not cover several items sought by New York, New Jersey and Connecticut, including repairs to vacation homes, damages covered by private insurance and costs incurred by private utilities, such as Con Edison.

“Our nation has an obligation to assist those who suffered losses and who lack adequate resources to rebuild their lives,” the White House wrote in a letter to congressional leaders outlining the plan.

But the proposal faces huge headwinds in Congress that complicate prospects for the quick passage that the states are seeking.

It reaches Capitol Hill at a time when the White House and Republicans are divided over how to avoid plunging off the “fiscal cliff” created by automatic spending cuts and the expiration of Bush-era tax cuts scheduled to take effect in the new year.

And some Tea Party Republicans in the House are expected to demand offsetting spending cuts elsewhere in the federal budget to pay for some or all of the new disaster aid.

The White House announced the $60.4 billion request late Friday after Gov. Cuomo, Gov. Chris Christie of New Jersey and their aides spent the day on the phone with the White House negotiating the final terms, according to a source with knowledge of the deliberations.

The two governors, Mayor Bloomberg and New York’s two U.S. senators all thanked Obama for the proposal — in marked contrast to the reaction early this week, when news that the White House might propose a $50 billion package was met with criticism.

The officials also made clear Friday that additional funding requests will be likely.

Cuomo called it the “first good news New York has had in a while.” He added, “It’s a great first step.”

Sen. Chuck Schumer (D-N.Y.) also said it was “a very good start” and acknowledged — along with Sen. Kirsten Gillibrand (D-N.Y.) — that the request faces a “tough fight.”

“It doesn’t cover everything we need, but it’s a very good percentage,” Schumer said. “They say half a loaf is better than none. Well, three quarters is better than half.”

Bloomberg said local officials “have always been realistic about the fiscal constraints facing the federal government.”

“Now it’s up to Congress to come together and work in a bipartisan fashion,” he added, calling for passage by Dec. 31. “Any delay will impede our recovery.”

A potential complication is that the states slammed by Sandy are mostly represented by Democrats in Washington — but Republicans control the House.

A spokesman for House Speaker John Boehner (R-Ohio) said Boehner received the request and would review it.

The measure contains $11.5 billion for the Federal Emergency Management Agency’s chief disaster relief fund and $17 billion for community development block grants, much of which would help homeowners repair or replace their homes.

Another $11.7 billion would help repair the subways and other mass transit damage and protect them from future storms. Some $9.7 billion would go toward the government’s flood insurance program and $5.3 billion would go to the Army Corps of Engineers to mitigate flood future risks and rebuild damaged projects

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