In a recent communication, President Biden alerts congressional leaders that certain disaster relief funds are expected to deplete prior to the upcoming election.
In a communique sent to political leaders over the weekend and initially obtained by CNN, Biden stated that the Federal Emergency Management Agency and the Department of Defense might require extra funds in the future, although they currently possess sufficient funds to attend to the immediate necessities of hurricane recovery. "They are executing vital, lifesaving, and life-sustaining missions and will carry on performing these tasks within the existing funding limits," the President penned.
However, Biden raised another red flag concerning financial assistance directed through the Small Business Administration, which is designed to aid small business proprietors and homeowners in recovering lost or damaged property and equipment. According to Biden, this program "is set to run out of funds within a matter of weeks and prior to Congress's intended resumption."
The SBA's disaster relief loan program offers up to $2 million to businesses and $500,000 to homeowners to offset the costs incurred due to destroyed or lost property throughout the disaster relief loan program. During extreme catastrophes, the Economic Injury Disaster Loan program aids businesses in covering their payroll expenses and maintaining their operations.
Anonymous administration officials revealed that the program needs an additional $1.6 billion in funding to cater to the needs of approximately 3,000 new applications related to damage caused by Hurricane Helene.
In June, the White House petitioned for $4 billion in disaster relief funds to cover expenses associated with the Key Bridge collapse in Baltimore, the ongoing recovery following Maui's wildfires, and the winds that ravaged the Midwest. However, a preliminary funding agreement that would prolong the government's operations until December did not incorporate this request. Consequently, the White House cautioned that the inadequate funding might result in "essentially halting operations" for the disaster loan program during the autumn.
During his visits to survey damage in North Carolina, Georgia, and Florida this week, Biden informed reporters that additional funding "cannot wait... individuals require assistance immediately."
In an interview with Fox News, House Speaker Mike Johnson asserted that lawmakers would evaluate the post-Helene requirements fully following the election. In his letter, Biden concurred that a comprehensive disaster relief package would be necessary when Congress reconvenes on November 12 - but emphasized that action on specific programs might be required prior to that date.
"It is essential that Congress prevents critical disaster programs, such as the SBA disaster loan program, from experiencing funding depletion during the Congressional Recess period," he penned.
Congress is presently on leave for the month of October before the election, as legislators campaign in their respective districts. Some legislators have urged Congress to return, if necessary - including Republican Senators Rick Scott of Florida and Lindsey Graham of South Carolina - although no plans for Congress to reconvene currently exist.
Following Hurricane Katrina's devastation of Louisiana in 2005, Congress curtailed its summer recess, with a handful of members returning to the floor to oversee an initial tranche of $10.5 billion in aid, which was adopted without dissent in both the House and the Senate. Such an action could potentially be viable with numerous members absent from Washington, if no opposition arose. In the Senate, however, a single member could inhibit its swift progression.
Despite the current funding being sufficient for immediate hurricane recovery needs, President Biden expressed concern about the Small Business Administration's disaster relief program running out of funds soon. He urged Congress to prevent funding depletion for critical programs, such as the SBA disaster loan program, during the recess period.
The White House cautioned that inadequate funding could potentially halt operations for the disaster loan program during the autumn, emphasizing the necessity of additional funding for hurricane relief efforts.
