Pallone Delivers Permanent Financial Relief for Sandy Survivors

Union Beach, NJ – Congressman Frank Pallone, Jr. (NJ-06) today announced a major win for New Jersey residents impacted by Superstorm Sandy during an event with survivors and advocates at Union Beach Borough Hall. After years of determined advocacy, the Department of Housing and Urban Development (HUD) has approved Pallone’s request to waive disaster aid clawbacks for low- and moderate-income Sandy survivors, as well as individuals facing foreclosure or who lost loved ones.

This federal waiver eliminates the unjust requirement to repay disaster assistance—a policy that has placed undue hardship on those still grappling with the storm’s aftermath. The relief is expected to be worth millions of dollars impacting hundreds of households. 

“Superstorm Sandy devastated our state, and for far too long, disaster aid clawbacks added unnecessary hardship for people still trying to recover,” said Pallone. “Every time I spoke with survivors, I heard stories of fear and uncertainty about how they would pay back money they used to rebuild their homes and lives. This relief is about justice for those who have endured so much—people who lost everything through no fault of their own—and ensuring they can finally move forward without this unfair financial burden. It’s a step toward helping our state heal, and I’m grateful to HUD for working with us to make this happen.”

The waiver provides targeted relief to eligible low- and moderate-income households, allowing forgiveness of up to $27,000 in disaster assistance debt. It also benefits those who experienced foreclosure, bankruptcy, or the loss of a loved one after receiving federal disaster aid. The State of New Jersey will now determine eligibility among approximately 900 households who have been asked to return more than $30 million in federal disaster assistance.

Joe Mangino, Board President of the New Jersey Organizing Project, joined Pallone at today’s event, saying, “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. 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." 

Pallone’s sustained engagement with HUD, including direct discussions with Acting HUD Secretary Adrianne Todman, was instrumental in securing the waiver. In 2022, he successfully advocated for an indefinite pause on federal recoupment deadlines, laying the groundwork for this breakthrough.

This announcement underscores Pallone’s long-standing commitment to disaster recovery and his dedication to ensuring New Jersey residents receive fair and comprehensive support as they continue to rebuild their lives.