September 7, 2011

Federal Issues

I. FEMA Stops Funding for Projects Prior to Hurricane Irene
II. Transportation Funding Reauthorization

Dear Mayor:

Developments, in Washington, D.C., on two key issues merit your attention. We thank the staff of the National League of Cities (NLC) for their constant vigilance.

I. FEMA Stops Funding for Projects Prior to Hurricane Irene

On Sunday, FEMA Administrator Craig Fugate announced FEMA was going into “immediate needs funding” of disaster projects.  This means while ongoing projects and immediate emergency relief would continue, FEMA will stop accepting assistance applications from disasters prior to Hurricane Irene until Congress replenishes the fund through the spending process. 

Prior to Irene, FEMA’s Disaster Relief Fund had fallen below $1 billion.  When this occurs, FEMA prioritizes its disaster spending, often only funding what are termed “immediate needs,” to ensure areas that are still in a state of emergency from a disaster get the help they need and enough funds are reserved in order to deal with any unforeseen disasters that may occur.  At this time, projects for which FEMA has already approved reconstruction applications will continue to move forward. 

While congressional inaction has led to FEMA declaring immediate needs only funding in six of the past nine years, restoring funding is likely to be more contentious this time.  House Majority Leader Eric Cantor and others in Congress have said they will seek offsetting cuts in order to replenish the Disaster Relief Fund.  The Senate is expected to reject this plan, creating another spending showdown.

NLC policy states that the federal government should “ensure FEMA has the funding, authority, clear mandate, and flexibility it needs to respond quickly and effectively.” We will urge New Jersey’s Congressional delegation to ensure FEMA has the needed funds to fulfill its commitment to rebuild communities that have been impacted by a disaster.

II. Transportation Funding Reauthorization

On Thursday, September 1, NLC issued a statement calling on Congress to enact a clean extension of federal surface transportation programs. 
As you know, the current short term legislation funding the highway, transit and bridge programs will expire on September 30th and federal authority to collect federal fuel taxes will expire, as well.   Federally funded construction projects will be forced to cease immediately if the U.S. Department of Transportation can no longer release federal transportation dollars.
Late last week, President Obama called for a clean extension of the surface transportation act and the user fees that support our Nation’s transportation investments.  The extension will prevent hundreds of thousands of workers from being forced off the job and keep much-needed infrastructure projects moving forward during this difficult economic period.

While a short-term extension is necessary to prevent disruptions, the Nation needs a long-term plan for investing in our vital infrastructure. We will urge New Jersey’s Congressional Delegation to support the full reauthorization during the term of the extension. A national commitment to infrastructure investment will employ hundreds of thousands of workers, while improving the efficiency of the Nation’s transportation network.

Investments in infrastructure can be a key driver for future growth and lay a foundation that will allow our Country to successfully compete in the global marketplace. It is imperative Congress provide a clear path forward in recommitting the nation to public transit, high speed rail corridors and fixing the crumbling transportation network. 

If you have any questions on either of these matters, contact Jon Moran at 609-695-3481, ext. 121 or jmoran@njslom.com.

Very truly yours,

 

William G. Dressel, Jr.
Executive Director