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Disaster aid account faces shortfall

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WASHINGTON (AP) — The government’s main disaster aid account is

running woefully short of money as the Obama administration

confronts damages from Hurricane Irene that could run into billions

of dollars.

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With less than $800 million in its disaster aid coffers, the

Federal Emergency Management Agency has been forced to freeze

rebuilding projects from disasters dating to Hurricane Katrina to

conserve money for emergency needs in the wake of Irene. Lawmakers

from states ravaged by tornadoes this spring, like Missouri and

Alabama, are especially furious.

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The shortfalls in FEMA’s disaster aid account have been obvious to

lawmakers on Capitol Hill for months – and privately acknowledged

to them by FEMA – but the White House has opted against asking for

more money, riling many lawmakers.

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“Despite the fact that the need … is well known,” Reps. Robert

Aderholt, R-Ala., and David Price, D-N.C., wrote the administration

last month, “it unfortunately appears that no action is being taken

by the administration.” The lawmakers chair the panel responsible

for FEMA’s budget.

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FEMA now admits the disaster aid shortfall could approach $5

billion for the upcoming budget year, and that’s before accounting

for Irene.

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As a result, funds to help states and local governments rebuild

from this year’s tornadoes, as well as past disasters like

hurricanes Katrina and Rita and the massive Tennessee floods of

last spring, have been frozen. Instead, FEMA is only paying for the

“immediate needs” of disaster-stricken communities, which include

debris removal, food, water and emergency shelter.

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“Going into September being the peak part of hurricane season, and

with Irene, we didn’t want to get to the point where we would not

have the funds to continue to support the previous impacted

survivors as well as respond to the next disaster,” FEMA

Administrator Craig Fugate told reporters at the White House on

Monday.

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Earlier this year, the administration requested $1.8 billion for

FEMA’s disaster relief fund, despite pent-up demands for much more.

Appropriations for last year totaled four times that

amount.

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FEMA estimates that the request still left the disaster fund short

by $2 billion to $4.8 billion for the upcoming fiscal year. Those

are figures the agency provided to Congress this spring – before

Irene or the tornadoes that destroyed huge swaths of Joplin, Mo.,

or beat up the South.

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With recovery operations from Irene still in the early stages, FEMA

spokesman Rachel Racusen said it is too early to know whether that

projected shortfall has increased or by how much.

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“It’s just too soon to know what any uninsured losses will be,”

Racusen said.

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“Even though the president himself said that we are going to do

everything we can to help these communities rebuild, the rhetoric

has not matched reality, and the Disaster Relief Fund is running

out of money,” Aderholt said.

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The likely vehicle for replenishing the disaster account is the

homeland security spending bill for the budget year beginning Oct.

1. The House passed the measure in early June, but the Senate has

yet to act.

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Meanwhile, Republicans controlling the House and the

Democratic-controlled Senate may be headed toward a battle over

whether to cut spending elsewhere in the budget to pay for tornado

and hurricane aid.

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A top leader in the tea-party-driven House says that chamber will

find those offsetting spending cuts. The Senate, however, is likely

to take advantage of a little-noticed provision in the recently

passed debt limit and budget deal that permits Congress to pass

several billion dollars in additional FEMA disaster aid without

budget cuts elsewhere.

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“We will find the money if there is a need for additional money,”

House Majority Leader Eric Cantor, R-Va., told Fox News on Monday.

“But those monies are not unlimited, and we have said we have to

offset that.”

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A House-Senate collision over disaster aid would risk further

delays in replenishing dangerously low FEMA disaster

accounts.

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“It’s too early to tell what the damage assessment will be and what

next steps may need to be taken,” said Meg Reilly, a spokeswoman

for the White House budget office.

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It’s hardly the first time that longer-term rebuilding projects

like schools and sewer systems have been frozen out to make sure

there’s money to provide disaster victims with immediate help with

food, water and shelter. But it’s frustrating to communities like

Nashville, Tenn., which is rebuilding from last year’s historic

floods.

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The Obama White House is just the latest administration to lowball

disaster relief requests. Over the past two decades, Congress has

approved $130 billion for FEMA’s disaster account. But the bulk of

that money, $110 billion, has been provided as emergency funding in

addition to the annual budget.

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