Loebsack Works with Senator Harkin to Secure Funding for Community and Economic Development

Press Release

Today, while traveling through the Second Congressional District with President George W. Bush and Governor Chet Culver, Congressman Dave Loebsack worked with Senator Tom Harkin to secure federal funding for Community Development Block Grants (CDBG) and Economic Development Disaster Assistance Grants.

"As I toured Cedar Rapids and Iowa City today with President Bush, I was encouraged by the clean-up efforts that have already begun, however we all understand the road to recovery will be long," said Congressman Loebsack. "I worked with Senator Harkin today to change the allocation of the disaster funding included in the House Emergency Supplemental so we can speed up and better target the assistance that will be necessary for our state to rebuild and thrive once again."

Earlier today, the Iowa House delegation announced that at their urging the House Appropriations Committee has included $2.65 billion dollars in emergency funding in the Emergency Supplemental bill. As a result of the work done by Congressman Loebsack and Senator Harkin today during their time with the President, the allocation of the $2.65 billion was changed. As a result, the funding will be distributed between the following federal accounts: FEMA $897,000,000; the Army Corps of Engineers $606,000,000; SBA Disaster Loans $267,000,000; Agricultural Assistance $480,000,000; Community Development Block Grants $300,000,000; Economic Development Administration $100,000,000.

The U.S. Department of Housing and Urban Development administers Community Development Block Grants (CDBG). Communities in Iowa will be able to use the CDBG Disaster Recovery Funds for housing needs, economic development, infrastructure improvements, and prevention of further damage to areas affected by the flood water. For example, funding can be used for debris removal, down payment assistance for individuals who have lost their homes, job creation in flood impacted areas, and rehabilitation of damaged homes and buildings.

The Economic Development Administration administers Economic Development Disaster Assistance Grants. This funding is provided to communities to help achieve long-term economic recovery in flood-impacted areas. Specifically, the funding can be used by local governments to organize and implement a recovery strategy. Additionally, funding is provided for new construction and post-disaster improvements to commercial, industrial, and publically owned facilities to help support job creation, job retention, and private investment.

As Eastern Iowa begins to recover and rebuild from the devastating flood waters that have only begun to recede in some parts of the Second Congressional District, Congressman Loebsack is committed to working with his colleagues to ensure continued disaster relief is provided to the communities, residents, and businesses affected by this disaster.

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