WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document

P.03/05 DC"T-31-2001 1?:28

New York Economic Assistance

Economic Development Grants($700 million) appropriated to the President to the Department of • Transfer $700 million ofthe $20 billion already to Housing and Urban DeveIop t(HUD)for Community Development Block Grants(CDBG) New York. law to give HUD the authority to waive current • The initiative includes a proposal to modify current low-income restrictions on use ofCDBG funds (this authority will be included in the appropriations bill that funds HM). vehicle, which generally provides broad • While the proposal would use CDBG as a funding business retention proposal made authority to the State, the proposal is based on the $700 million by New York City. y y .

Private Activity Bonds($2 billion): billion. increase New York State's private activity:bond cap by $2 the intent is to assist the financing While the specifics of this proposal still need to be developed, change in law will be needed before for replacing commercial office space in New York City. A this proposal can be implemented.

TANF/Food Stamps($110 million) maintenance of effort requirement In FY • Seek statutory authority to reduce New York's TANF to provide state funds towards the 2002 by 3100 million. Under currentlaw,New York is required Administration proposal will reduce TANF program to be eligible for Federal TANF funds. The funds to other pressing priorities. this requirement in FY 2002 so that New York can devote these unobligated balances that couldbe As ofJune 30 New York had $803 million in .federal TANF used to fund the services previously provided by the State. assistance. Under • Waive penalties associated with provision ofTANF emergency homeless homeless assistance emergency current law,New York is only allowed to.charge four months of "reasonable cause" exception that towards its TANF budget. HHS will provide New York with a towards four months will prevent New York from being penalized for charging assistance beyond much as five use as its TANF budget. This will give New York City additional flexibility to million dollars outside its TANF budget for other needs. York with an additional • The United States Department of Agriculture(USDA)will provide New unemployed workers who assist $5 million in Food Stamps Employment and Training funds to suspend quality control reviews need employment services and Food Stamps. USDA will offer to

NYC-WTC 000136568