After Years of Advocacy, Pallone Secures Permanent Financial Relief for Sandy Survivors

Washington, DC – Congressman Frank Pallone, Jr. (NJ-06), a longtime advocate for Sandy survivors, announced today that the Department of Housing and Urban Development (HUD) has agreed to waive the recoupment of federal disaster assistance for eligible survivors. Pallone has fought tirelessly to ensure Sandy-impacted families are not burdened with repaying federal disaster aid. HUD agreed to Pallone’s request to provide relief to low- and moderate-income survivors, as well as those who have faced foreclosure or lost loved ones.

These recoupment efforts known as clawbacks have blindsided homeowners because many New Jersey residents owe tens of thousands of dollars through no fault of their own after applying for loans and benefits offered by various federal programs at the recommendation of the government. Hundreds of New Jersey households are expected to benefit from this recoupment waiver. Pallone spoke to Acting HUD Secretary Adrianne Todman by phone in November and December to urge her to approve the proposal, which will provide up to $27,000 in relief to low- and moderate-income households. The move will also provide relief to homeowners who received disaster assistance that then faced foreclosure, bankruptcy or died after receiving aid. There are more than 900 New Jersey households that owe over $31 million in clawbacks. The State of New Jersey will now work to determine eligibility.

“New Jersey families were decimated by Superstorm Sandy and have been on the hook for millions of dollars in federal clawbacks through no fault of their own. It’s ridiculous that the government would try to take back disaster aid from people who have died, had their property foreclosed on, or are just scraping by after getting wiped out by Sandy. After years of effort, the federal government is finally giving New Jersey families the relief they deserve,” said Congressman Pallone. “I’m thankful to Acting Secretary Todman for taking this crucial step that will finally deliver relief to Sandy survivors who have been plagued by federal clawback efforts for years.”

“This is major progress for us and low- and moderate-income Sandy families who will see forgiveness, survivors who have had to file for bankruptcy or are in foreclosure, and those heartbreaking cases where Sandy survivors have passed away. These are the folks who need the life jacket the most. It will mean everything,” said Joe Mangino, Board President of the New Jersey Organizing Project. “We are so grateful to Congressman Pallone for spearheading this major step forward and for fighting for clawback forgiveness alongside Sandy survivors for years. We know he'll continue to stand with us and work toward relief for all of us."

On December 11, Pallone joined disaster survivors at the U.S. Capitol, including advocates from the New Jersey Organizing Project, to push for comprehensive and equitable disaster recovery solutions. 

In 2022, Pallone secured an indefinite legislative extension of recoupment efforts for debt owed to the federal government that was included in the Omnibus Fiscal Year 2023 package but did not absolve homeowners of the funds owed.