A bipartisan group of lawmakers is fighting to protect innocent victims of Superstorm Sandy from the Federal Emergency Management Agency’s (FEMA) attempts to 'clawback,' or take back, millions of dollars in disaster aid, said U.S. Rep. Chris Smith (NJ-04), who represents the hard hit areas of Monmouth and Ocean Counties.

In letters written by Smith and co-signed by Democratic-lead Rep. Gregory W. Meeks (NY-05) and 21 others, the lawmakers are urging the House Appropriations subcommittees of jurisdiction to include provisions to halt FEMA’s actions in this year’s funding bill.

“Sandy victims must not be held liable for FEMA’s mistakes. It is egregiously unfair to require New Jersey residents who acted in good faith to rebuild their homes and their lives to repay recovery assistance provided after FEMA deemed them eligible,” said Smith. “From FEMA clawbacks to fraud and abuse in the National Flood Insurance Program, Sandy survivors have been further victimized by a broken system—and they deserve better.”

FEMA has sent out thousands of “recoupment” letters to Sandy victims demanding millions of dollars in “improper payments” be returned—even if the alleged improper payment was due to FEMA error. Under current policy, if victims do not pay the FEMA-determined debt in full or agree to a payment plan, the debt is referred to the U.S. Department of the Treasury for collection.

The Smith-led letters request bill language prohibiting FEMA and the Treasury from using federal funds to claw back disaster aid if: (1) the covered assistance was distributed based on FEMA error; (2) there was no fault on behalf of the debtor; (3) collection of the debt would be against equity and good conscience; and (4) there is no fraud, presentation of a false claim, or misrepresentation by the debtor or any other interested party.

“Blocking funding of FEMA’s unjust recoupment attempts would provide temporary relief as we continue to work towards a long-term, fair and equitable solution,” continued Smith.

As the letter states, Congress provided FEMA with the discretionary authority to waive debts under the same circumstances following Hurricanes Katrina and Rita in 2005 (Public Law 112-74).

While the House recently and unanimously passed the FEMA Disaster Assistance Reform Act of 2015 (H.R. 1471)—which provides similar discretionary waiver authority as well as a correlating statute of limitations—inclusion of this bill language would provide a backstop for Sandy victims should the Senate fail to take action on H.R. 1471 by the close of session.

Joining Smith and Meeks in signing the letters are Reps. Frank LoBiondo (NJ-02), Tom MacArthur (NJ-03), Scott Garrett (NJ-05), Frank Pallone, Jr. (NJ-06), Albio Sires (NJ-08), Bill Pascrell, Jr. (NJ-09), Donald Payne, Jr. (NJ-10), Bonnie Watson Coleman (NJ-12), Pete King (NY-02), Kathleen Rice (NY-04), Grace Meng (NY-06), Hakeem Jeffries (NY-08), Yvette Clark (NY-09), Jerrold Nadler (NY-10), Dan Donovan (NY-11), Charles Rangel (NY-13), Joseph Crowley (NY-14), Eliot Engel (NY-16), Sean Patrick Maloney (NY-18), Chris Gibson (NY-19), and Maxine Waters (CA-43).

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