Biden warns congressional leaders in a new letter that some disaster funding will run out before the election

CNN
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In the wake of Hurricane Helene, which devastated several states along the East Coast, President Joe Biden is calling on lawmakers to replenish some key disaster relief programs that have nearly run out of money.

In a letter sent to members of Congress late Friday and first obtained by CNN, Biden said that the Federal Emergency Management Agency and the Department of Defense may need additional funding in the future, although they have enough money to meet the immediate needs of the United States Cover hurricane recovery. “They are conducting important life-saving and life-sustaining missions and will continue to do so within current funding,” the president wrote.

But Biden again sounded the alarm about funding from the Small Business Administration aimed at helping small business owners and homeowners recover property and equipment, a loan program that he said was coming “in a matter of weeks and well before Congress plans.” “Running out of funding will come together again.”

The SBA's Disaster Relief Loan Program awards up to $2 million to businesses and $500,000 to homeowners to cover the cost of lost or destroyed property under the Disaster Relief Loan Program. During extreme disasters, the Economic Injury Disaster Loan program helps businesses payroll and maintain operations.

Administration officials, speaking on condition of anonymity to discuss non-public information, said the program needs $1.6 billion in additional funding to meet the needs of the roughly 3,000 new applications submitted daily for the damage caused by Hurricane Helene.

The White House requested $4 billion in disaster relief funds in June to cover costs related to the Key Bridge collapse in Baltimore, the ongoing recovery from the Maui wildfires and the tornadoes that devastated the Midwest.

A short-term funding deal that would extend government operations through December did not include that request, prompting the White House to warn that low funding levels could cause operations of the disaster loan program to “effectively cease” this fall.

During damage assessment visits to North Carolina, Georgia and Florida this week, Biden told reporters that additional funding “can't wait… people need help now.”

In an interview with Fox News, House Speaker Mike Johnson said lawmakers would fully assess Helene's needs after the election. Biden agreed in his letter that a comprehensive disaster relief package will be necessary when Congress returns on November 12 – but said action on individual programs may be needed by then.

“It is critical that Congress ensure that no critical disaster programs, such as the SBA Disaster Loan Program, run out of funding during the Congressional recess,” he wrote.

Congress takes a break in October before the election as lawmakers campaign in their home districts. While some lawmakers have called on Congress to return if necessary – including Republican Sens. Rick Scott of Florida and Lindsey Graham of South Carolina – there are currently no plans for Congress to reconvene.

After Hurricane Katrina devastated Louisiana in 2005, Congress called off its summer recess and some members returned to the chamber to shepherd an initial tranche of $10.5 billion in relief funds that passed the House and Senate without Objection was passed. Such a move would be possible if many members were removed from Washington, if there was no opposition. In the Senate, every single member could prevent rapid progress.