New Jersey received just $15 million from a $1 biilion federal competition. Watch video
WASHINGTON -- The failure to include state funds in its application caused New Jersey to receive just $15 million from a program carved out of money originally earmarked for Hurricane Sandy aid, U.S. Rep. Frank Pallone Jr. said Friday.
Pallone and other lawmakers who met with officials of the Department of Housing and Urban Development said they would continue to seek more federal aid for a state still recovering from the 2012 storm. The department rejected more than $300 million in New Jersey requests for federal aid.
"New Jersey got stuck sucking wind," said U.S. Rep. Tom MacArthur (R-3rd Dist.).
The meeting was arranged by Pallone (D-6th Dist.) and Rep. Bill Pascrell (D-9th Dist.) in response to HUD's decision last month to give New Jersey less than the 12 other states and municipalities awarded money under the $1 billion National Disaster Resilience Competition.
HUD Secretary Julian Castro said last month that New Jersey submitted a weaker application than its competitors. Pallone (D-6th Dist.) said that's because the state refused to match the federal funds it sought with its own dollars, even after being told after an initial review that its application was lacking in that detail.
"It's the governor's fault," Pallone said. "The application was a lousy application. They had ample opportunity to correct it but they didn't do it. We lost a lot of points because the governor's office didn't commit the matching funds."
Not true, said Joelle Farrell, a spokeswoman for Gov. Chris Christie.
Members of the Christie administration were told by HUD officials during their meeting Friday that the agency would not count $27 million from the state's Shore Protection Fund because it had to be approved by the legislature, Farrell said.
"Had HUD not done so, New Jersey's leverage would have exceeded other applicants funded at much higher levels," Farrell said. "It's clear that HUD's arbitrary decision to give weight to this routine fact of state budgeting clearly and materially reduced the state's award. There is no other explanation for this subjective decision to shortchange New Jersey from needed relief funds."
HUD awarded the state $15 million to help communities develop plans to address flooding risks, including looking at building codes. Rejected were $236 million for water pumping stations, berms, wetland restoration and other measures in the Meadowlands to help reduce flooding; and $75 million for a New Jersey Transit bus garage in Secaucus as part of an effort to help the state recover economically from Sandy.
Of the $1 billion, New York and New Jersey were guaranteed a combined minimum of $181 million. New York got nearly $212 million: New York City was awarded $176 million to help protect lower Manhattan from flooding, and New York state $35.8 million for repairs to public housing projects.
Pascrell said the state was advised to put up more of its own money but declined to do so. "I give the administration poor grades on the application," he said.
He also had harsh words for HUD, questioning why the agency was willing to help rebuild homes damaged by Sandy-caused flooding but not for programs designed to divert the water elsewhere. "What good is it if tomorrow morning we have another storm?" Pascrell said.
Other lawmakers declined to criticize Christie.
"I'm not going to point fingers," said Rep. Scott Garrett (R-5th Dist.). "My work is to get additional relief for New Jersey."
New Jersey lawmakers initially objected to diverting Sandy funds for the national competition, and said the fact that the state received so little money proved they were right.
"The contest, in my opinion, was ridiculous from the start," MacArthur said. "The end result violated the spirit and intent of the law. It's time to figure out how to undo this."
Is Christie or Obama to blame?
Rep. Chris Smith (R-4th Dist.) met separately with HUD officials Thursday and brought up the case of Manasquan residents who were advised by the federal government to seek low-interest Small Business Administration loans only to discover later that it made them ineligible for grants to help them rebuild.
He said he was told that HUD may not have the money to help them out, even as most of the $1 billion program was spent elsewhere.
"They should have been first, second, third and fourth," Smith said. "It was very, very hard-fought money," Smith said. "Now it's been diverted."
Besides Pallone, Pascrell, Garrett and MacArthur, Reps. Donald Norcross (D-1st Dist.) and Albio Sires (D-8th Dist.) attended Friday's meeting.
Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant. Find NJ.com Politics on Facebook.