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Pallone Vows to Continue Fighting for Families Devastated by Superstorm Sandy on 10th Anniversary of Storm

October 28, 2022
Press Release
Since Superstorm Sandy, Pallone has advocated for a strengthened flood insurance program, infrastructure investments to protect the coastline, and forgiveness of clawbacks

Long Branch, NJ – Congressman Frank Pallone, Jr. (NJ-06) today vowed to keep fighting for families devastated by Superstorm Sandy ten years ago. Pallone joined Governor Murphy for a tour of the Port Monmouth flood control project today in Monmouth County. Pallone secured $110 million in a federal spending bill for the project after Superstorm Sandy. He has also introduced legislation to reform the National Flood Insurance Program, delivered federal funding to strengthen infrastructure along the Jersey Shore, and secured forgiveness of clawbacks in a federal House spending bill.

“Ten years ago, Superstorm Sandy devastated our state. Since then, I’ve fought for federal funding to make sure our coastal communities are better protected from the next major storm and flooding events. I also fought for families who were decimated by the storm by securing in a House spending bill forgiveness of millions of dollars they owe through no fault of their own,” Pallone said. “We’ve come a long way, but there’s still work to do. In Congress, I’m fighting for a better flood insurance program that prevents insurance companies and contractors from taking advantage of homeowners. I’ll continue to fight for New Jerseyans and make sure our state is protected from major weather events.”

Below is a summary of Pallone’s advocacy for victims of Superstorm Sandy and the federal infrastructure funding he secured:

Clawback Forgiveness

Pallone worked with the New Jersey Congressional delegation to secure a provision to waive federal recoupment efforts for Superstorm Sandy victims in a federal spending bill. It passed the House in July 2022. The provision grants the Secretary of Housing and Urban Development the authority to waive the requirement for New Jersey homeowners to pay back federal disaster relief aid.

Recoupment efforts known as “clawbacks” have blindsided homeowners because many New Jersey residents applied for loans and benefits offered by various federal programs at the recommendation of the government. The spending bill would indefinitely delay the federal government’s recoupments efforts - affecting 1,813 households in New Jersey that currently owe $73 million. Among those homeowners, 882 households would be eligible for full forgiveness - worth over $28 million - subject to Secretary approval.

Secured Community Disaster Loans Forgiveness

Pallone also worked with New Jersey Congressional delegation to secure forgiveness of outstanding balances of Community Disaster Loans (CDLs) made to municipalities in New Jersey to help them recover from Superstorm Sandy. They secured the loan forgiveness in a government operations bill that the House passed and President Biden signed in 2021. At that time, 18 New Jersey municipalities owed more than $25 million worth of Community Disaster Loans that were issued after the storm.

Funding for Flood Control Projects

Pallone secured $110 million in a federal spending bill for the Port Monmouth Flood Protection Project. The U.S. Army Corps of Engineers has already completed the construction of a 40-ft wide flood gate and pumping station across Pews Creek and a floodwall on Port Monmouth Road. The next phase of the project will include the construction of a floodwall and levee system along Route 36 to Creek Road to Broadway as well as the construction of an additional floodwall, levee system, and pumping station along Main Street. The project is expected to be completed by July 2024.

Pallone also secured funding for a flood control project in Union Beach that will begin this fall. The funding was authorized in the Water Resources Development Act of 2007. Pallone fought for subsequent funding in the Disaster Relief Appropriations Act of 2013. In July, Pallone announced that the first contract was awarded for $50 million. The U.S. Army Corps of Engineers will use the funding for sand replenishment and to construct dunes, groins, and pedestrian and automobile crosswalks. The next phase of the project will include interior flood control structures, including a floodgate.

Legislation to Reform the National Flood Insurance Program

In October 2021, Pallone re-introduced the National Flood Insurance Program Reauthorization and Reform Act to make the program more affordable, more transparent, and to inject fairness into the claims process. Pallone has also advocated for a cap on premium price hikes that would make the program unaffordable for many homeowners.