Officials warn that a key federal program that provides disaster loans to businesses and homeowners is severely underfunded in the aftermath of a series of hurricanes, increasing pressure on Congress to return to Washington. I am doing it.
The Small Business Administration (SBA) has about $50 million left in new disaster loans and will run out of funds soon, likely before Congress returns from recess next month, amid increased demand in the aftermath of Hurricane Helen. The agency says it expects this to happen. Officials say the program will cost about $1.6 billion.
“SBA staff is currently working across the country to assist communities affected by disasters,” SBA Administrator Isabel Casillas Guzmán said in a statement this week. But the agency added, “We are rapidly using up current federal funding to provide new affordable recovery loans to homeowners, renters, small businesses, and nonprofit organizations.”
“Americans don’t have to wait for critical aid when they need it most.”
President Biden has also sounded the alarm on the issue, telling reporters on Thursday that Congress “must immediately return to a state of emergency and take immediate action.”
“Congress should act as quickly as possible, especially on the most pressing needs of small and medium-sized businesses,” he said.
Biden's latest call adds to the pressure facing Congress as he returns from the campaign trail to approve additional disaster relief in response to the devastation caused by Hurricanes Helen and Milton.
Congress last month passed a temporary stopgap measure to prevent federal funding from expiring in October and prevent a government shutdown. Despite repeated requests from the administration, the bill did not include any additional funding for the SBA.
Also noticeably absent from similar measures was additional funding for the Federal Emergency Management Agency (FEMA). Instead, negotiators said the agreement would allow FEMA to more quickly tap into the fund's fiscal year 2025 funds for disaster response during the nearly three-month moratorium, and that FEMA would He said it has been possible to withdraw funds from a pot of about $20 billion since the beginning of the day.
FEMA officials said in recent days that they had enough funding to respond to Hurricanes Milton and Helen during Congress' short recess, but that nearly half of that money is already gone. shown to reporters.
The SBA said it will continue processing disaster loan applications after the funds are exhausted, but will need additional funding from Congress to make further loan offers to borrowers or send out checks. .
As the campaign enters final gear for the crucial fall election, lawmakers on both sides of the aisle are calling for Congress to end its recess early, ahead of its current Nov. 12 resumption date.
In a letter to House Speaker Mike Johnson (R-Louisiana) earlier this week, a group of House Democrats said the disaster funding recently approved by Congress falls “critically short” of what is needed for this fiscal year. He said there was.
“The Federal Emergency Management Agency (FEMA) must not only respond to current disasters, but also be equipped to adequately prepare for future events,” the letter reads.
Lawmakers also called for the SBA's disaster relief loan program to be “replenished as soon as possible to help business owners rebuild their businesses and communities.”
After Herren, Johnson said FEMA had enough money to cover the period until Congress resumes, suggesting he had little interest in bringing lawmakers back to Washington. The Hill has reached out to the Speaker's Office for comment.
Even some Republicans are pressuring the speaker on the issue.
“I just got off the phone with @POTUS Biden, who is personally overseeing that FEMA doesn't create any problems with debris removal and is supporting $15 billion in FEMA funds intended solely for hurricane victims. ,” Rep. Anna Paulina Luna (R-Florida) wrote on social platform X on Thursday.
“If Congress goes into special session, it can pass immediately. This needs to happen. @SpeakerJohnson please call me back,” she said Thursday, later adding: Subsequent posts She also spoke with Johnson, who said he is “actively working on this issue as well.”
Pressed by Biden's calls for an early return, Senate Minority Leader Chuck Schumer of New York said Friday that he is “waiting for estimates from agencies that are working diligently on the ground.”
Despite previous calls for more disaster relief funding, the Biden administration has yet to announce a new emergency funding request in response to the Herren and Milton cases.
Asked earlier this week how much time Congress had before SBA and FEMA funds ran out, Biden told reporters that the debate on the issue was still ongoing, but added, “I can't say anything about the SBA. “We are in a very tight situation,” he said. Right now. “
Biden spoke about the overall urgent need, saying, “It's going to cost billions of dollars.” “It's more than just a little bit, but we're providing it now to make sure people get the emergency help they need.”
