OMB tells Congress there's a surplus in emergency funds

By Dipka Bhambhani

Connecting state and local government leaders

| August 12, 2002

The Office of Management and Budget reported to Congress on Friday that agencies collectively still have not spent $14 billion of the $40 billion in emergency response funds that Congress appropriated after the Sept. 11 terrorist attacks.

The Office of Management and Budget reported to Congress on Friday that agencies collectively still have not spent $14 billion of the $40 billion in emergency response funds that Congress appropriated after the Sept. 11 terrorist attacks.

The Agriculture, Education and Labor departments have spent less than one-third of their funds, OMB said.

Agriculture has used 22 percent of its $367 million emergency funding. Education has used none of its $10 million, although it expects to obligate $5 million for New York City schools. Labor has spent $69 million of its $249 million.

Conversely, the Defense Department and Transportation Security Administration likely will spend all the money they received.

The report covers Sept. 18, 2001, through June 30. DOD had spent 81 percent of its $17.2 billion in emergency funding during the period.

The Transportation Department had spent $1.4 billion of its nearly $2.7 billion. TSA has obligated $93.3 million of that for contracts to hire screeners and train them, and for other airport security initiatives, the report said.

Because DOD was expected to exhaust its emergency money by the end of July, and TSA has been adding staff and equipment for airport security, the two received additional money from the recently passed 2002 supplemental appropriations bill.

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