Main Content

FEMA Director Announces Spending Plan for $8.8 Billion

Main Content
Release date: 
February 26, 2003
Release Number: 

New York, NY -- With new authority provided in the fiscal year 2003 "omnibus" appropriations bill, signed by President George W. Bush last week, Joe M. Allbaugh, director of the Federal Emergency Management Agency (FEMA), announced the final spending plan for costs associated with the World Trade Center disaster. The plan accounts for the approximately $8.8 billion that has been appropriated to FEMA as part of President Bush's commitment to provide more than $20 billion to New York in response to the September 11th terrorist attacks.

"This could not have been accomplished without the leadership of President Bush and the constant, open dialogue made possible by Governor Pataki and Mayor Bloomberg," said Allbaugh. "In addition, Senators Clinton and Schumer have been an integral part of this process. I thank them for their support throughout."

New projects approved by Allbaugh include $260 million to reimburse state and local governments for the costs associated with line-of-duty pensions to the surviving spouses and children of police officers and firefighters killed in the collapse of the World Trade Center. The spending plan also provides $90 million to fund continuing evaluations and long-term health monitoring for Ground Zero workers, including $25 million for current and retired Fire Department of New York members who worked at Ground Zero. Approximately $775 million will be used to help the city and state with other costs associated with the attacks. In summary, an estimated $1 billion will be released to the city and state as a result of the new authorization.

"FEMA's flexibility and willingness to work toward solutions for New York send a clear message to all New Yorkers. Joe Allbaugh has been listening to us,'" said Governor George Pataki. "On behalf of the people of New York, thank you."

In addition, FEMA will provide $1 billion to cover potential claims against the four debris removal contractors who worked at Ground Zero as well as for claims against New York City brought by city employees related to debris removal operations.

FEMA worked closely with members of the House and Senate appropriations committees to ensure that language in the omnibus bill provided authority allowing FEMA to continue fulfilling the President's commitment to help the city and state of New York recover from the effects of the September 11th attack.

(in millions of dollars)
Debris Removal and other Public Assistance 2,486
Transportation Infrastructure, Mission Assignments and Other Administrative Costs 3,175
Human Services and Crisis Counseling 499
Hazard Mitigation 426
New Jersey Emergency Declaration 87
Additional Spending Announced by FEMA on February 20, 2003
Debris Removal Insurance 1,000
Last Updated: 
July 16, 2012 - 18:46
State/Tribal Government or Region: 
Related Disaster: