These programs include  individual assistance to victims affected by a disaster and hazard  mitigation funds to state and local governments to take steps to prevent  future disasters. The assistance is to be  provided to repair, restore, reconstruct, or replace eligible facilities. $7.4 Billion in Public Assistance-Related Funding Provided for Broad Range of Activities

The approximately $7.4 billion of public assistance and public assistance- related work funded through FEMA is providing a broad range of aid to  the NYC area. Based on our analysis, we  categorize the public assistance and related funding for NYC into six  general areas:    debris removal operations and insurance;  reconstruction of the Lower Manhattan transportation infrastructure  under an interagency agreement with DOT; reimbursement of police and fire department costs; reimbursement of expenses incurred by NYC agencies other than the  Departments of Design and Construction, Sanitation, Police and Fire for  such activities as DNA and forensic testing to identify victims and exterior  building cleaning; reimbursement of expenses to agencies that are not part of the NYC  government (i.e., New York state agencies, the Port Authority, and private  non profits) for disaster-related costs such as transportation work not  covered under the interagency agreement discussed above; and reimbursement of public assistance-related expenses authorized by  Congress that would not otherwise have been eligible for assistance (i.e. We provide additional perspective on how  aspects of this interagency agreement differ from FEMA’s traditional  public assistance response to major disasters on page 28 of this report. Reimbursements to Other NYC Government Agencies

Although the NYC Departments of Design and Construction, Sanitation,  Fire, and Police were the city agencies that received the largest amounts  of FEMA public assistance funding for debris removal and insurance and  for emergency response losses and expenses related to the terrorist  attacks, FEMA also provided direct public assistance to a number of other  NYC agencies for a wide range of work totaling almost $300 million. Reimbursements for Public Assistance- Related Work Authorized by Congress

Lastly, $1.2 billion was made available in June 2003 as a result of FEMA’s  early close out of its traditional public assistance program to NYC and  state for congressionally authorized costs associated with the terrorist  attacks. While FEMA followed traditional processes for  considering most applications, the public assistance response in the NYC  area after the terrorist attacks differed significantly from the traditional  approach FEMA has used in providing assistance under the Stafford Act  after major natural disasters. Congress  provided FEMA with specific appropriations for the terrorist attacks that  resulted in a capped funding amount of $8.8 billion for its efforts to aid the  NYC area from the President’s pledge of at least $20 billion in federal  assistance. Reimbursement for instructional time for students to make up for days  missed after the terrorist attacks ($19.3 million). With respect to the effectiveness of the Stafford Act in dealing  with a major terrorist event of an impact equal to or greater than the World  Trade Center attacks, the officials from NYC involved in the response and  recovery efforts whom we interviewed did not believe that the act fully  addressed the needs of the city and did not think it should be used to  respond to major terrorist events unless it had significant amendments to  address the unique challenges related to terrorist events. The key issue is whether the differences in the ways the public assistance  program in the NYC area was delivered will serve a baseline for the federal  approach in the event of another major terrorist event. Appendix I: Scope and Methodology

To determine what activities the Federal Emergency Management (FEMA)  supported through its public assistance program, we analyzed published  FEMA reports and FEMA’s National Emergency Management Information  System (NEMIS) data. To determine how the federal government’s response to the terrorist event  differed from FEMA’s traditional approach to funding public assistance in  other disasters, we selected 10 projects for detailed review from an issue  matrix created by the public assistance officer at the World Trade Center  Federal Recovery Office.
Why GAO Did This Study

The terrorist attacks on New York City created the most costly disaster in U.S. history. In response, the President pledged at least $20 billion in aid to the city. Approximately $7.4 billion of this aid is being provided through the Federal Emergency Management Agency's (FEMA) public assistance program, which provides grants to state and local governments to respond to and recover from disasters. The Senate Committee on the Environment and Public Works requested that GAO determine (1) what activities FEMA supported in the New York City area through its public assistance program after the terrorist attacks; (2) how the federal government's response to this terrorist event differed from FEMA's traditional approach to providing public assistance in past disasters; and (3) what implications FEMA's public assistance approach in the New York City area may have on the delivery of public assistance should other major terrorist attacks occur in the future.

What GAO Found

FEMA has supported many activities through its $7.4 billion in public assistance-related funding to the New York City area. Activities funded include grants to state and local governments for emergency response, such as debris removal, and permanent work, such as the repair of disaster-damaged public facilities. FEMA also provided public assistance-related funding specifically directed by Congress that would not otherwise have been eligible for assistance (e.g. reimbursing costs of instructional time for students who lost school time after the terrorist attacks). The major uses for this funding are as follows: $1.7 billion for debris removal operations and insurance; $2.8 billion to repair and upgrade the transportation infrastructure of Lower Manhattan; $0.6 billion to the New York City Police and Fire Departments for such purposes as emergency efforts and replacing destroyed vehicles; $0.3 billion to miscellaneous city agencies for a wide range of activities (e.g., instructional time for students and building cleaning); $0.7 billion for non-New York City agencies for many purposes (e.g. office relocations and repair of damaged buildings); and $1.2 billion available on June 30, 2003, for public assistance-related reimbursements to New York City and state (work to be decided). The provision of public assistance to the New York City area differed in three significant ways from FEMA's traditional approach. FEMA and New York City officials agreed that FEMA's public assistance approach in the New York City area creates uncertainties regarding the delivery of public assistance in the event of another major terrorist event. They differed on the effectiveness of using the public assistance program as currently authorized as the vehicle for federal disaster response to a future major terrorist event. Key New York City officials said that the program needed major revisions, while FEMA officials said it worked well along with the congressional prerogative to provide additional assistance. Nevertheless, FEMA has begun to consider ways to redesign the program to make it better able to address all types and sizes of disasters, including terrorist attacks.