WASHINGTON – Many home and business owners flooded out by Superstorm Sandy could get insurance payouts soon through congressional action expected Friday on a $9.7 billion bill to replenish the National Flood Insurance Program.
The Federal Emergency Management Agency, which runs the program, warned that it will run out of money next week if Congress doesn't give it additional borrowing authority to pay out claims. Congress created the program in 1968 because few private insurers cover flood damage.
Northeast lawmakers say the money is urgently needed for storm victims awaiting claim checks from the late October storm that was one of the worst to strike the Northeast, ravaging the coast from North Carolina to Maine, with the worst flooding occurring in Atlantic City, N.J., New York City and Long Island and along the Connecticut coastline.
"People are waiting to be paid," said Rep. Frank LoBiondo, R-N.J., whose district includes Atlantic City and many other coastal communities hard hit by the storm. "They're sleeping in rented rooms on cots somewhere and they're not happy. They want to get their lives back on track and it's cold outside. They see no prospect of relief."
House Speaker John Boehner promised a House vote on Friday after his decision earlier this week to delay an action on a broader Sandy relief package provoked outrage from Northeast Republicans, including New Jersey Gov. Chris Christie, who said he'd lost trust in GOP leaders in Congress after being promised a vote earlier this week.
If the House, as expected, approves the flood insurance proposal, the Senate plans to follow with a likely uncontested vote later Friday, according to a Senate Democratic leadership aide.
About 140,000 Sandy-related flood insurance claims have been filed, FEMA officials said, and most have yet to be closed out. Many flood victims have only received partial payments on their claims.
Philip Rock has received $8,000 in flood insurance payments so far, but said he is awaiting a statement on the final amount, which he expects to be much more. A house he owns in Toms River, N.J., had a $220,000 flood insurance policy. The house, which he rents out, was destroyed, and he needs to know the final payout before he can demolish it.
The house is a "total loss," Rock said. "We don't want to demolish the house and have them say, 'We have to go around and take more pictures.'"
New York, New Jersey and Connecticut were the states hardest hit by the storm in terms of damage from high winds, flooding and storm surges. The storm damaged or destroyed more than 72,000 homes and businesses in New Jersey. In New York, 305,000 housing units were damaged or destroyed and more than 265,000 businesses were affected.
The flood insurance measure is the first phase of a proposed Sandy aid package. Under Boehner's new schedule, the House will vote Jan. 15 on an additional $51 billion in Sandy recovery money. Senate action on that measure is expected the following week. Fiscally pressured local governments are awaiting that money.
"This funding will give the city and state the much-needed resources to rebuild our damaged infrastructure and provide further aid to individuals and small businesses struggling to pick up the pieces of their lives," said Rep. Michael Grimm, R-N.Y., whose district includes Staten Island, one of New York's hardest-hit areas.
Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and was blamed for at least 120 deaths. Northeast lawmakers have complained that it took just 10 days for Congress to approve about $50 billion in aid for Katrina but that it hasn't provided aid for Sandy relief in more than two months.
"States and local communities need to know the money will be there before they can give a green light to start rebuilding," said LoBiondo.
More than $2 billion in federal money has been spent so far on relief efforts for 11 states and the District of Columbia struck by the storm. New York, New Jersey, Connecticut, West Virginia, Virginia, Maryland, New Hampshire, Delaware, Rhode Island, Pennsylvania, Massachusetts and the District of Columbia are receiving FEMA aid.
Associated Press writer Katie Zezima in Newark, N.J., contributed to this story.