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[House Document 111-100]
[From the U.S. Government Publishing Office]

111th Congress, 2nd Session - - - - - - - - - - - - - House Document 111-100

 
           REQUEST FOR FY 2011 EMERGENCY SUPPLEMENTAL FUNDING

                               __________

                             COMMUNICATION

                                  from

                         THE DIRECTOR,OFFICEOF

                          MANAGEMENTANDBUDGET

                              transmitting

  A REQUEST OF FY 2011 EMERGENCY SUPPLEMENTAL FUNDING, TOTALING $1.5 
  BILLION FOR THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) DISASTER 
                           RELIEF FUND (DRF)

   April 13, 2010.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, March 9, 2010.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: On February 12, 2010, the 
Administration submitted a request to amend the FY 2010 
supplemental funding in the FY 2011 Budget. The amendment 
included $1.5 billion for FEMA's Disaster Relief Fund to 
supplement the $3.6 billion requested for FY 2010 in the FY 
2011 Budget. I am writing to you to reiterate the urgency of 
the funding for domestic disasters through FEMA's Disaster 
Relief Fund (DRF) and ask that it be declared an emergency. The 
DRF is essential to keeping the Nation prepared: providing 
immediate recovery assistance across the country for situations 
ranging from earthquakes, hurricanes, and terrorist incidents 
to more routine emergencies like the snowstorms that recently 
struck the East Coast.
    We estimate that the DRF will be exhausted this month if 
the Congress fails to act. The crucial role of the DRF has been 
exemplified in recent weeks, with a total of eight disaster 
declarations in February alone for eight different states--all 
tied to recent severe snowstorms. By the end of March, we are 
projecting a $137 million DRF funding shortfall. That shortfall 
is estimated to increase to $1.5 billion by the end of April, 
and to more than $3.2 billion by the end of June. If 
supplemental funds are not approved promptly, communities and 
individuals eligible for Federal assistance will not be 
reimbursed, and State and local governments forced to bear the 
full cost of these events until the DRF is replenished could 
limit their disaster relief responses. Imposing additional 
costs on States and localities is particularly problematic 
given the precarious fiscal situation that they face in the 
current economy.
    The requested funding for the DRF would provide recovery 
assistance across the country. The 59 disasters and seven 
emergencies declared in 2009 spanned 33 States and territories, 
and as of March 1, 2010, another eighteen disasters and three 
emergencies had been declared in seven different States or 
territories.
    The costs of the Gulf Coast's recovery from hurricanes 
Katrina and Rita also continue to contribute to current funding 
needs. The supplemental request includes the estimated costs of 
arbitration claims (including claims by the Charity Hospital in 
New Orleans that were recently the subject of an arbitral 
award); Katrina-related school settlements to account for the 
destruction or damage of virtually all of New Orleans's 
educational facilities in the storm; and other public 
assistance and hazard mitigation projects that remain 
unfinished, including the repair or replacement of storm-
damaged roads, police and fire stations, public buildings, and 
other infrastructure. As we approach the fifth anniversary of 
Katrina, it is critical to bring to closure these Federal 
contributions to Gulf Coast recovery.
    Thank you very much for your prompt consideration of this 
request.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.

                                  
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