Bush to offer $5.5 billion more in aid to New York

By SHANNON Mccaffrey

Associated Press

WASHINGTON – President Bush is proposing $5.5 billion in additional Sept. 11 aid for New York, bringing the total federal assistance to more than the $20 billion he previously pledged, a New York congressman said Thursday.

Republican Rep. James Walsh said the additional spending makes the federal package $21.3 billion, including tax breaks in a “Liberty Zone” tax relief plan for lower Manhattan that is making its way through Congress.

“This is great news,” Walsh said.

Bush planned to meet at the White House Thursday with New York Gov. George Pataki, New York City Mayor Michael Bloomberg and the New York congressional delegation to discuss the additional funding, which is subject to congressional approval.

The new aid includes $2.75 billion more from the Federal Emergency Management Agency, which could be used for cleanup and other costs. It also contains $1.8 billion for transit upgrades and $750 million in community development money, which could be used to reimburse utilities, Walsh said.

Verizon and Con Edison, two New York utilities hit hard by the attacks, have said that they might be forced to raise rates for consumers if they do not receive assistance.

Bush pledged $20 billion to New York in the days following the attacks and reiterated that promise on a recent visit to the city.

New York has received about $11 billion so far. Sens. Hillary Rodham Clinton and Charles Schumer, both D-N.Y., and others complained that money was not coming fast enough and questioned whether Bush’s promise would be kept.

White House budget director Mitchell Daniels further upset New York lawmakers last month when he likened the quest for aid to a “little money-grubbing game.” He later said he regretted making the comment, which he said was misconstrued.

The $5 billion Liberty Zone tax relief plan was expected to pass the House Thursday. The measure includes 13 additional weeks of unemployment benefits for those who lost jobs in New York and elsewhere because of the attacks.