Statement on the Cost-Share Adjustment for Midwest Flood Recovery

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.