U.S. Transportation Secretary LaHood Announces $1.42 Billion to Help Transit Agencies Recover From Hurricane Sandy

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FTA meets deadline to get first $2 billion in aid to storm’s hardest-hit communities

3/29/2013
Contact: Amy Bernstein
202-366-0706

WASHINGTON – U.S. Transportation Secretary Ray LaHood today announced a third round of Federal Transit Administration (FTA) storm-related reimbursements through the FY 2013 Disaster Relief Appropriations Act. The majority of the $1.4 billion announced today goes to the four transit agencies that incurred the greatest expenses while preparing for and recovering from Hurricane Sandy—the New York Metropolitan Transportation Authority (MTA), the Port Authority Trans-Hudson Corp. (PATH), New Jersey Transit (NJT), and the New York City Department of Transportation (NYC DOT). The remainder will be allocated to other transit agencies that incurred eligible storm-related expenses but have not yet received funds.

“Shortly after Hurricane Sandy made landfall, President Obama and I promised that we would do everything in our power to bring relief to the hardest-hit communities, and that is exactly what we have done,” said Secretary LaHood. “In less than two months’ time, we met our commitment to provide $2 billion to more than a dozen transit agencies that suffered serious storm damage, and laid the groundwork to continue helping them rebuild stronger than before.”

A total of $10.9 billion was appropriated for the disaster relief effort, which is administered through FTA’s Emergency Relief Program. (This amount was reduced by 5 percent, or $545 million, because of the mandatory sequestration budget cut that took effect on March 1.) Earlier this month, FTA allocated nearly $554 million of the first $2 billion in aid to reimburse certain transit providers in New York, New Jersey, Pennsylvania and Connecticut. With today’s allocation, FTA has now met the 60-day Congressional deadline to get the initial funds out the door in order to reimburse hard-hit transit agencies for expenses incurred while preparing for and recovering from the storm.

“Considering that over a third of America's transit riders use the systems most heavily damaged by Hurricane Sandy, it is imperative that we continue this rapid progress to restore these systems in the tri-state region,” said FTA Administrator Peter Rogoff.

The remainder of the $10.9 billion will be utilized for ongoing recovery efforts as well as to help agencies become more resilient in the face of future storms and disasters. The FTA has published an Interim Final Rule (PDF) in the Federal Register this week for FTA’s Emergency Relief Program outlining general requirements that apply to all the funds allocated related to Sandy and future grants awarded under this program.

A summary of how the funds announced today are to be allocated is described below. A more detailed breakdown, and information on eligibility requirements, appears in the Federal Register (PDF):

  • $1.4 billion in disaster relief aid primarily to assist the transit agencies that incurred the greatest storm-related expenditures: the New York MTA, the PATH, New Jersey Transit (NJT), and the NYC DOT. These funds are made available on a pro-rated basis, based on damage and cost assessments FTA has made with the Federal Emergency Management Agency (FEMA) and the transit agencies themselves.
  • A separate $21.9 million allocation to reimburse the NYC DOT as part of a consolidated request with other entities for various activities prior, during, and after the storm to protect the Staten Island Ferry, its equipment, and personnel, the East River Ferry service, and Governors Island, including the public island’s Battery Maritime Building ferry waiting room. Emergency measures included moving transit equipment to higher ground, operating ferry vessels at berths to prevent damage; debris removal; reestablishing public transportation service; protecting, preparing and securing Ferry Terminals at St. George and Whitehall, facilities and offices to address potential flooding; staffing and operating ferryboats at berths to prevent damage; and performing shelter-in-place operations for worker protection during the storm.
  • $422,895 to reimburse four additional transit agencies for expenses incurred preparing for and recovering from the storm. These are the Greater Bridgeport Transit District ($21,783); the Massachusetts Bay Transportation Authority ($344,311); the Rhode Island Public Transit Authority ($1,179) and the Connecticut Department of Transportation, which is receiving $55,622 just for CTTransit bus-related expenses, as FTA previously allocated $2.8 million to MTA for Metro-North rail service serving southwestern Connecticut.

A table listing total allocations for funding recipients to date and a summary of their reimbursable expenditures is available here.

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