[Public Papers of the Presidents of the United States: William J. Clinton (1993, Book II)]
[September 22, 1993]
[Page 1565]
[From the U.S. Government Publishing Office www.gpo.gov]



Statement on the Cost-Share Adjustment for Midwest Flood Recovery
September 22, 1993

    I have been in the Midwest four times since early summer when the 
floods first began to exact their steep toll on the lives and 
livelihoods of thousands of hardworking Americans. I've seen firsthand 
the magnitude of the damage, the submerged towns, and the drowned 
fields, shops, and farms--some temporarily out of business, some 
permanently destroyed.
    I promised that when the Midwest asked the Federal Government for 
help, the Federal Government would answer swiftly and strongly. And I'm 
very proud of the speed and efficiency with which our Government, led by 
FEMA, has met this challenge.
    But the job is far from done. The extraordinary duration and force 
of the floods caused an unprecedented degree of damage to the economies 
in the Midwest, damage that will take dozens of months and billions of 
dollars to repair. And as I pledged, the Federal Government will not 
leave the people of the Midwest to handle this alone.
    That's why earlier I announced that in States where the cost of 
flood damage was at least $64 a person, the Federal Government would 
adjust the requirement that States assume 25 percent of the cost of 
FEMA-provided relief. Instead, the National Government would pay fully 
90 percent of those costs.
    However, as the damage toll continues to mount, it's becoming 
increasingly clear to me that we must not view flood relief as local 
assistance only. The scope of this disaster is so great that it has the 
potential to have a dampening effect on our entire national economy, and 
we must respond accordingly.
    Therefore, today I have established a second standard that will be 
used to address those disasters with wider economic impact. In multiple 
State disasters with significant impact on the national economy, the 
alternative threshold has been established at .1 percent of the gross 
domestic product. That means I have approved the reimbursement of 
eligible public FEMA assistance disaster costs for the nine Midwest 
States affected by this summer's catastrophic flooding at a 90 percent 
Federal/10 percent non-Federal cost-share basis.
    As the families of the Midwest struggle to restore order to their 
lives and rebuild their communities, I want them to know that this 
administration plans to be with them every step of the way. And I'm 
determined that our commitment remains as clear in our actions as it is 
in our words and our prayers.