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Terrorism Insurance: Alternative Programs for Protecting Insurance Consumers, Statement of Thomas J. McCool, Managing Director, Financial Markets and Community Investment, Testimony before the Senate Committee on Banking, Housing and Urban Affairs
Before September 11, insurance coverage for losses from terrorism was a normal feature of insurance contracts. The attacks on the World Trade Center and the Pentagon have changed insurers' perceptions of their risk exposure. Both insurers and reinsurers say that they do not know how much to charge for this coverage and because they cannot predict future losses, they may exclude terrorism insurance from future contracts unless the federal government provides some guidance to the industry. Several insurance programs in the United States and other countries ensure that insurance will be available to cover risks that the private sector has been unable or unwilling to cover, including losses from catastrophic events and terrorism. For government insurance programs, the question of long-term cost and program funding needs to be addressed before any program is established. Some federal insurance programs have a statutory intent to provide subsidized coverage, while others are intended to be self-funding. Regardless of statutory intent, if federal insurance is underpriced relative to its long-run costs and the federal government pays the difference, a government subsidy results.
United States. General Accounting Office
2001-10-24
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Commercial Aviation: A Framework for Considering Federal Financial Assistance, Statement of David M. Walker, Comptroller General of the United States, Testimony before the Committee on Commerce, Science, and Transportation, U.S. Senate
The terrorist attacks on the World Trade Center and the Pentagon on Sept. 11 killed thousands of Americans and foreign nationals. The economic toll will also be enormous. Countless jobs and retirement funds are now at risk. Estimates of the losses to the airline industry alone have ranged from $4 billion, according to many analysts, to more than $20 billion, according to some airline officials. Congress has already appropriated $40 billion for emergency responses, including increased transportation security, and Congress is considering financial assistance to the airline industry. GAO believes that the government needs to clearly define the nature of the problem--separating short-term needs from long-term challenges, industry wants from real needs. Although all airlines now face major financial challenges, government assistance cannot overcome the financial difficulty that confronted several carriers before the events of September 11. The government has a range of options to assist the airline industry, from loans and loan guarantees to tax subsidies. The choice and design of the assistance is critical to targeting federal aid to the immediate problems, spreading responsibility among all industry stakeholders, and ensuring accountability to Congress and the American people. Because an unknown level of risk will accompany such assistance, mechanisms must be put in place to protect the federal government and the taxpayers from excessive and unnecessary losses.
United States. General Accounting Office
2001-09-20
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Financial Management: Assessment of the Airline Industry's Estimated Losses Arising From the Events of September 11
The airline industry's losses from the terrorist attacks will total at least $5 billion through December 2001. Even so, carrier-by-carrier losses are likely to vary significantly from the formula-derived allocations of $5 billion. Therefore, some carriers may experience losses higher than their individual formula amount, while others' losses may be lower.
United States. General Accounting Office
2001-10-05
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Manual for Defense Incident-Based Reporting System
This Manual is issued under the authority of DoD Directive 7730.47, "Defense Incident-Based Reporting System (DIBRS)," October 15, 1996. It prescribes procedures for submission of information about criminal and specifically identified "high interest" incidents from occurrence through final disposition, using automated data from law enforcement and criminal investigations, flowing through prosecutions and corrections.
The purpose of this Manual is to standardize and institutionalize data submissions for criminal and "high interest" incident-related information required by OSD. Currently, several requirements for the submission of criminal and "high interest" information exist. Multiple submission requirements necessitate extensive coordination among the DoD Components to obtain reliable information that can be aggregated for DoD-wide use.
The file formats specified in this Manual are intended both to replace most existing and ad hoc data calls for overall law enforcement data and to satisfy congressionally mandated requirements of the Uniform Federal Crime Reporting Act (28 U.S.C. 534), the Brady Handgun Violence Prevention Act of 1994, and statistical reporting requirements of the Victim Rights and Restitution Act of 1990 (42 U.S.C.10601 et seq.).
United States. Department of Defense
1996-11
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DoD Nuclear Weapon System Safety Program Manual
This Manual is issued under the authority of DOD Directive 3150.2, "DoD Nuclear Weapon System Safety Program," December23 1996. It prescribes procedures for implementation of the Department of Defense Nuclear Weapon System Safety Program.
United States. Department of Defense
1996-12
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Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives
This Manual is reissued under the authority of DoD Directive 5100.76, "Physical Security Review Board," dated February 10, 1981. It provides physical security guidance for the protection of DoD sensitive conventional arms, ammunition and explosives (AA&E). DoD 5100.7-M dated September 16, 1992 is hereby canceled.
United States. Department of Defense
2000-08
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Terrorism's Financial Lifeline: Can It be Severed?
The attacks of September 11 and the global campaign against terrorism have put the spotlight on rogue capital, a growing problem for law enforcement and the financial sector. Using traditional and sophisticated techniques, terrorist and criminal groups have extended their reach beyond states to build multinational empires with pervasive, well-funded subsidiaries. Weak states, lax banking regulations, persistent corruption, and shadow financial systems compound the problem. Terrorists and criminals generate, manipulate, and launder funds in different ways and for different ends, but the links between them are growing stronger. As direct state sponsorship declines, terrorists have shifted increasingly toward illicit moneymaking. The question is how best to expose this money lifeline, render it vulnerable, and ultimately sever it. America has led the global effort to cut off the sources of money to these groups. It has worked through the Group of 8 and bilateral partners to strengthen initiatives against money laundering and manipulation. Yet compliance with such measures alone will not guarantee success. Economic assistance is needed to ease the domestic impact associated with the loss of illicit sources of foreign exchange in weak states. Helping such states to fight this problem is essential. It will entail strengthening justice systems and making bureaucracies more transparent to offset the increasing resort to corruption by those determined to circumvent stricter regulations.
National Defense University. Institute for National Strategic Studies
Thachuk, Kimberley L., 1962-
2002-05
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Combating Terrorism: Use of National Guard Response Teams is Unclear, Statement of Mark E. Gebicke, Director, National Security Preparedness Issues, National Security and International Affairs Division, Testimony before the Subcommittee on National Security, Veterans' Affairs, and International Relations, Committee on Government Reform, House of Representatives
The Defense Department (DOD) recently approved the creation of 10 National Guard response teams to help state and local authorities deal with terrorists attacks involving weapons of mass destruction. GAO found differing views on the role and the use of these response teams and how they will fit into state and federal plans to respond to weapons of mass destruction. Army officials believe that the teams can be a valuable asset to federal authorities. They also believe that the teams will be a critical part of the state and local response. However, officials with the FBI and the Federal Emergency Management Agency, which are responsible for managing the federal response to terrorist attacks, do not see a role for the teams in the federal response. Instead, they foresee the National Guard providing its traditional assistance in emergencies. Differing views also exist at the state level. Many state, local, and federal groups can do the work that the teams would perform. For example, more than 600 state and local hazardous materials teams in the United States deal with incidents involving highly toxic industrial chemicals and other hazardous materials. GAO's discussions with state, local, and federal officials and its own analysis found several concerns that could affect the teams' abilities to meet their mission and responsibilities. These concerns centered on recruiting and retention, training, and operational issues. This testimony summarizes GAO's June 1999 report, GAO/NSIAD-99-110.
United States. General Accounting Office
1999-06-23
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DoD Directive 5030.41: Oil and Hazardous Substances Pollution Prevention and Contingency Program
1. This Directive reissues DoD Directive 5030.41, October 3, 1972 to: a. Reflect revisions to the National Oil and Hazardous Substances Pollution Contingency Plan, Title 40, Code of Federal Regulations, Section 1510 (hereinafter referred to as the "National Contingency Plan"), such as (1) more precise information on substances to remove discharges, (2) revised criteria to determine size of discharges, (3) an updated definition of discharge and its relationship to public health and welfare, and (4) a broad definition of the geographic area covered. b. Implement the Environmental Protection Agency (EPA) Regulations on Oil Pollution Prevention (reference (Title 40. Code of Federal Regulations, Section 112, )). c. Establish a Department of Defense Oil and Hazardous Substances Pollution Prevention and contingency Program (hereinafter referred to as the "DoD Program"), to: (1) Reduce the likelihood of oil discharges from non-transportation related onshore and offshore facilities into or upon the waters of the United States or adjoining shorelines (2) Respond rapidly to control and minimize the damage caused by discharges of oil or hazardous substances for DoD facilities. (3) Provide, in a manner consistent with DoD operational requirements, resources and other assistance necessary to support Federal pollution response operations conducted in accordance with the National Contingency Plan. 2. DoD Directive 5030.41, October 3, 1972 is hereby superseded and canceled.
United States. Department of Defense
1977-06-01
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DoD Directive 5100.76: Physical Security Review Board
1. This Directive reissues DoD directive 5100.76, May 17, 1977 (hereby canceled) to continue, in restructured form, the Physical Security Review Board, and modify the reporting criteria previously set forth. It outlines the authorities, responsibilities, and functions relative to the formulation of world-wide uniform policy, standards, and procedures for the physical security of nuclear weapons, devices, reactors, and materials, and conventional arms, ammunition, and explosives in the possession or custody of DoD Components. 2. This Directive also authorized the issuance of DoD Manual 5100.76-M, "Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives," and appropriate supplements, consistent with the requirements of DoD Directive 5210.41, September 12, 1978.
United States. Department of Defense
1981-02-10
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DoD Directive 4640.7: DoD Telecommunications Systems (DTS) in the National Capital Region (NCR)
This Directive updates policy, responsibilities, and procedures for the acquisition, management, and operation of a consolidated and centrally managed telecommunications system. That system includes support to Command, Control, Communications, and Intelligence (C3I) functions for the Department of Defense in the NCR.
United States. Department of Defense
1993-10-07
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DoD Directive 5160.5: Responsibilities for Research, Development, and Acquisition of Chemical Weapons and Chemical and Biological Defense
The Directive reissues reference DoD Directive 5160.5, "Responsibility for Research, Development, Test and Evaluation (RDT&E) on Chemical Weapons and Chemical and Biological Defense, " March 30, 1976 (hereby canceled) to reflect national policy decisions; update budgeting, and programming and operational procedures; and assign responsibilities for DoD research, development, and acquisition (RDA) of weapons and chemical and biological defense.
United States. Department of Defense
1985-05-01
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DoD Directive 5525.5: DoD Cooperation with Civilian Law Enforcement Officials
This Directive reissues DoD Directive 5525.5, March 22, 1982 "to update uniform DoD policies and procedures to be followed with respect to support provided to Federal, State, and local civilian law enforcement efforts; and assigns responsibilities."
United States. Department of Defense
1986-01-15
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DoD Directive 5400.4: Provision of Information to Congress
This Directive reissues DoD Directive 5400.4 , February 20, 1971, to incorporate provisions of OMB Circular A-19-R, "legislative Coordination and Clearance," July 31, 1972, and update DoD policies and procedures governing the furnishing of information, both classified and unclassified, to the Congress. DoD Directive 5400.4, February 20, 1971 is hereby superseded and canceled.
United States. Department of Defense
1978-01-30
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DoD Directive 6205.3: DoD Immunization Program for Biological Warfare Defense
This Directive: (1) Establishes policy, assigns responsibilities, and prescribes procedures for members of the Department of Defense against validated biological warfare threats, and prioritization of research, development, testing, acquisition, and stockpiling of biological defense vaccines under 10 U.S.C. (2) Provides vaccination guidance that focuses exclusively on defense against biological warfare threats and complements immunization requirements for naturally occurring endemic disease threats outlined in DODI 6205.2, October 9, 1986 and AR 40-562/NAVMEDCOMINST 6230.3/AFR 161-13/CG COMDTINST M6230.4D, "Immunizations and Chemoprophylaxis," November 7, 1988. (3) Addresses peacetime and contingency requirements for immunization against biological warfare threats against U.S. personnel. (4) Designates the Secretary of the Army as the "DoD Executive Agent" for the DoD Immunization program for Biological Warfare Defense. (5) Provides direction on levels of acquisition and stockpiling of biological defense vaccines and prioritizes research and development efforts in defending against current and emerging biological warfare threats.
United States. Department of Defense
1993-11-26
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DoD Directive 5505.9: Interception of Wire Electronic, and Oral Communications for Law Enforcement
This Directive: 1. Replaces DoD Directive 5200.24, April 3, 1978 to update policy and responsibilities governing the interception of wire, electronic, and oral communications for law enforcement under Sections 2510-2521, 2701-2711, and 3121-3127 of title 18, United States code. 2. Provides guidance for the internal operation of the Department of defense, but is not intended to, does not, and may not be relied on to create any right or benefit, substantive or procedural, enforceable by law against the United States or the Department of Defense, or its officers, employees, or agents. 3. Authorizes publication of DoD O-5505.9-M in accordance with DoD 5025.1-M, August 1994.
United States. Department of Defense
1995-04-20
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DoD Directive 6490.2: Joint Medical Surveillance
This Directive: 1. Establishes policy and assigns responsibility, under DoD Directive 5136.1, May 27, 1994, and DoD Directive 4715.1, February 24, 1996, for routine joint medical surveillance of all Military Service members during active Federal service, especially military deployments. 2. Designates the Secretary of the Army as the DOD Executive Agent for the medical surveillance for deployments for the Department of Defense and for the maintenance of the Armed Forces Serum Repository consistent with this Directive.
United States. Department of Defense
1997-08-30
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DoD Directive 8520.1: Protection of Sensitive Compartmented Information (SCI)
This Directive implements Section 403-5(a) of title 50, United States Code, to establish policy
and assign responsibilities regarding the protection, use, and dissemination of Sensitive Compartmented Information (SCI) within the Department of Defense.
United States. Department of Defense
2001-12-20
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DoD Directive 6420.1: Armed Forces Medical Intelligence Center (AFMIC)
This Directive reissues DoD Directive 6420.1, December 9, 1982 to reflect changes in the organization and conduct of DoD medical intelligence activities.
United States. Department of Defense
1996-09-30
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Homeland Security: Proposal for Cabinet Agency Has Merit, But Implementation Will be Pivotal to Success Statement of David Walker, Comptroller General of the United States, Testimony before the Subcommittee on Technology, Terrorism and Government Information, Committee on the Judiciary, U.S. Senate
Since September 11, the President and Congress have taken aggressive steps to protect the nation, including creating an Office of Homeland Security (OHS); passing new laws, such as the USA Patriot Act and an emergency supplemental spending bill; establishing a new agency to improve transportation security; and working with federal, state, and local governments, private sector entities, non-governmental organizations and other countries to prevent future terrorist acts and to bring those individuals responsible to justice. More recently, Congress and the President have proposed greater consolidation and coordination of various agencies and activities. The President has proposed establishing a Department of Homeland Security (DHS) and has sent draft legislation to Congress. This testimony focuses on two major issues: (1) the need for reorganization and the principles and criteria to help evaluate what agencies and missions should be included in or left out of the new DHS and (2) issues related to the transition, cost, and implementation challenges of the new department.
United States. General Accounting Office
2002-06-25
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National Preparedness: Integrating New and Existing Technology and Information Sharing into an Effective Homeland Security Strategy, Statement of Randall A. Yim, Managing Director, National Preparedness, Testimony before the Subcommittee on Technology and Procurement Policy, Committee on Government Reform, House of Representatives
Federal, state, and local governments, and the private sector, are taking steps to strengthen the safety and security of the American people, including actions to strengthen border and port security, airport security, health and food security and to protect critical infrastructure. There are date, information-sharing, and technology challenges facing the country in developing and implementing a national preparedness strategy. The nature of the terrorist threat makes it difficult to identify and differentiate information that can provide an early indication of a terrorist threat from the mass of data available to those in positions of authority. Further, the nation faces considerable cultural, legal, and technical barriers in effectively collecting and sharing information. Many technologies key to addressing threats are not yet available, and many existing technologies have not effectively been adapted for the threats the country now faces. The real challenge, however, is not just to find the right solutions to each of these problems but to weave solutions together in an integrated and intelligent fashion.
United States. General Accounting Office
2002-06-07
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Homeland Security: Key Elements to Unify Efforts are Underway but Uncertainty Remains, Report to Congressional Requesters
The issue of homeland security crosscuts numerous policy domains, impinging on the expertise and resources of every level of government, the private sector, and the international community. GAO found that although combating terrorism crossed organizational boundaries, it did not sufficiently coordinate the activities of the 40 federal entities involved, resulting in duplication and gaps in coverage. The homeland security efforts of public and private entities do not yet represent a unified approach, although key supporting elements for such an approach are emerging. Progress has been made in developing a framework to support a more unified effort. Other remaining key elements--a national strategy, establishment of public and private sector partnerships, and the definition of key terms--are either not in place yet or are evolving. At the same time, key terms, such as "homeland security," have not been defined officially; consequently, certain organizational, management, and budgetary decisions cannot currently be made across agencies. In the interim, the potential exists for an uncoordinated approach to homeland security that may lead to duplication of efforts or gaps in coverage, misallocation of resources, and inadequate monitoring of expenditures.
United States. General Accounting Office
2002-06-07
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Information Security: Corps of Engineers Making Improvements, But Weaknesses Continue
GAO tested selected general and application controls of the Corps of Engineers Financial Management System (CEFMS). The Corps relies on CEFMS to perform key financial management functions supporting the Corps' military and civil works missions. The Corps has made substantial progress in improving computer controls at each of its data processing centers and other Corps sites. The Corps had completed action on 54 of GAO's 93 previous recommendations and partially completed or had action plans to correct the remainder. During the current review, nine new weaknesses were identified and corrected. Nevertheless, continuing and newly identified vulnerabilities involving general and application computer controls continue to impair the Corps' ability to ensure the reliability, confidentiality, and availability of financial and sensitive data. Such vulnerabilities increase risks to other Department of Defense networks and systems to which the Corps' network is linked. Weaknesses in general controls impaired the Corps' ability to ensure that (1) computer risks are adequately assessed, and security policies and procedures within the organization are effective and consistent with overall organizational policies and procedures; (2) users have only the access needed to perform their duties; (3) system software changes are properly documented before being placed in operation; (4) test plans and results for application changes are formally documented; (5) duties and responsibilities are adequately segregated; (6) critical applications are properly restored in the case of a disaster or interruption; and (7) the Corps has adequately protected its network from unauthorized traffic. Application control weaknesses impaired the Corps' ability to ensure that (1) current and accurate CEFMS access authorizations were maintained, (2) user manuals reflect the current CEFMS environment, and (3) the Corps is effectively using electronic signature capabilities.
United States. General Accounting Office
2002-06-10
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Homeland Security: Intergovernmental Coordination and Partnership Will Be Critical to Success, Statement of JayEtta Hecker, Director, Physical Infrastructure, Testimony before the Subcommittee on Government Efficiency, Financial Management, and Intergovernmental Relations, Committee on Government Reform, House of Representatives [July 1, 2002]
"In my testimony today, I will focus on the challenges facing the federal
government in (1) establishing a leadership structure for homeland
security, (2) defining the roles of different levels of government, (3)
developing performance goals and measures, and (4) deploying
appropriate tools to best achieve and sustain national goals. My comments
are based on a body of GAO's work on terrorism and emergency
preparedness and policy options for the design of federal assistance, our
review of many other studies, and the Comptroller General's June 25,
2002, testimony on the new Department of Homeland Security (DHS)
proposal. In addition, I will draw on GAO's ongoing work for this
Subcommittee, including an examination of the diverse ongoing and
proposed federal preparedness programs, as well as a series of case
studies we are conducting that examine preparedness issues facing state
and local governments. To date, we have conducted interviews of officials
in four geographically diverse cities: Baltimore, Maryland; New Orleans,
Louisiana; Denver, Colorado; and, Los Angeles, California. We have also
interviewed state emergency management officials in these states."
United States. General Accounting Office
2002-07-01
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Homeland Security: Title III of the Homeland Security Act of 2002 Statement of (Ms) Gary L. Jones, Director, Natural Resources and Environment, Testimony before the Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, House of Representatives
I appreciate the opportunity to be here today to discuss several aspects of
the Homeland Security Act of 2002. The proposed legislation would bring
many federal entities with homeland security responsibilities into a
Department of Homeland Security in an effort to mobilize and focus assets
and resources. Title III of the proposed legislation would task the new
department with developing national policy for and coordinating the
federal government's research and development efforts for responding to
chemical, biological, radiological, and nuclear threats. It would also
transfer to the new department responsibility for certain research and
development programs and other activities, including those of the
Department of Energy (DOE). In my testimony today, which focuses on Title III of the proposed legislation, I will address (1) the need for clarification of certain roles and responsibilities of the new department and (2) our observations on transferring certain activities of DOE to the new department. Our testimony is based largely on our previous and ongoing work on national
preparedness issues, as well as a review of the proposed legislation.
United States. General Accounting Office
2002-07-09
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Homeland Security: New Department Could Improve Coordination but May Complicate Public Health Priority Setting, Statement of Janet Heinrich Director, Health Care--Public Health Issues, Testimony before the Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, House of Representatives
"In order to assist the committee in its consideration of this extensive
reorganization of our government, my remarks today will focus on Title V
of the President's proposal and the implications of (1) the proposed transfer of specific public health preparedness and response programs currently housed in HHS into the new department and (2) the proposed transfer of control over certain other public health preparedness assistance programs from HHS to the new department. My testimony today is based largely on our previous and ongoing work on federal, state, and local preparedness in responding to bioterrorist threats,3 as well as a review of the proposed legislation."
United States. General Accounting Office
2002-06-25
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Information Security: Advances and Remaining Challenges to Adoption of Public Key Infrastructure Technology, Report to the Chairman, Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations, Committee on Government Reform, House of Representatives
The federal government must overcome several major challenges before public key infrastructure (PKI) technology can be widely and effectively used. These challenges include providing interoperability among agency PKIs, ensuring that PKI implementations can support a potential large scale of users, reducing the cost of building PKI systems, setting policies to maintain trust levels among agencies, and establishing training programs for users at all levels. Although such challenges are difficult to overcome in the near term, the federal government can take steps to better assist agencies develop and implement PKIs that may eventually be interconnected into a federal governmentwide system. The recent effort to develop a Federal Bridge Certification Authority (FBCA) is an excellent first step in this direction, but this effort lacks the context of a well-defined program plan for the government as well as key policy and technical standards. Establishing a federal PKI management framework could facilitate and accelerate participation in the FBCA as well as overall federal adoption of key technology for enabling electronic government.
United States. General Accounting Office
2001-02-26
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Combating Terrorism: Federal Response Teams Provide Varied Capabilities; Opportunities Remain to Improve Coordination, Report to Congressional Requesters
Eight federal agencies now have teams that can respond to a terrorist attack involving chemical, biological, radiological, or nuclear weapons. Each team varies in size, structure, geographical scope, and task. The teams do not duplicate one another. They have unique capabilities and functions, and many have experience dealing with different types of agents and weapons. The type of terrorist incident would determine which team would be most appropriate to respond. GAO found that federal agencies lack a coherent framework to develop and evaluate budget requirements for their response teams because there is no national strategy with clearly defined outcomes. To improve interagency cooperation, federal agencies have participated in several group activities. For example, the Weapons of Mass Destruction Interagency Steering Group, led by the Federal Emergency Management Agency, is identifying federal response teams that could respond to different terrorist scenarios. Federal, state, and local agencies have also participated in major field exercises that simulated urban terrorist acts. These efforts could go a long way toward improving the operational coordination of federal response teams.
United States. General Accounting Office
2000-11-30
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September 11: More Effective Collaboration Could Enhance Charitable Organizations' Contributions in Disasters, Report to the Ranking Minority Member, Committee on Finance, U.S. Senate
Surveys suggest that as many as two-thirds of American households have donated money to charitable organizations to aid in the response to the September 11 disasters. To provide the public with information on the role of charitable aid in assisting those affected by the attacks, GAO was asked to report on the amount of donations charities raised and distributed, the accountability measures in place to prevent fraud by organizations and individuals, and lessons learned about how to best distribute charitable aid in similar situations.
Although it may be difficult to precisely tally the total amount of funds raised in response to the September 11 attacks, 35 of the larger charities have reported raising an estimated $2.7 billion since September 11, 2001. About 70 percent of the money that has been collected by these 35 charities has been reported distributed to survivors or spent on disaster relief since September 11, 2001. Charities used the money they collected to provide direct cash assistance and a wide range of services to families of those killed, those more indirectly affected through loss of their job or residence, and to disaster relief workers. At the same time, lessons have been learned that could improve future charitable responses in disasters, including easing access to aid, enhancing coordination among charities and between charities and the Federal Emergency Management Agency (FEMA), increasing attention to public education, and planning for future events.
United States. General Accounting Office
2002-12-19
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September 11: Small Business Assistance Provided in Lower Manhattan in Response to the Terrorist Attacks, Report to the Chairman, Committee on Small Business, House of Representatives
The attacks on the World Trade Center had a substantially negative impact on the New York City economy, severely affecting businesses. In the aftermath of the attacks, Congress, among other things, appropriated emergency supplemental funds to several federal agencies to aid and rebuild the affected areas.
The Chairman of the House Committee on Small Business asked GAO to describe the assistance provided to small businesses that is funded from emergency supplemental appropriations of federal Community Development Block Grant funds and other sources.
To assist in New York City's recovery from the September 11, 2001, terrorist attacks, Congress appropriated $3.5 billion in Community Development Block Grant funding of which Congress earmarked at least $500 million to be used to compensate small businesses, nonprofit organizations, and individuals for their economic losses.
One year after the attacks, these funds, administered in part by New York State's Empire State Development Corporation (Empire State), have provided $266 million to about 9,000 small businesses, many with fewer than 10 employees (see fig. below).
Such assistance has included grants to compensate businesses for part of their economic losses--for both physical and economic injuries--and payments to attract and retain small businesses in efforts to revitalize the affected areas. Hundreds of millions of dollars remain available through these and other programs to assist an estimated 18,000 affected businesses. Empire State has employed mailings, visits, walk-in centers, and mass media to inform businesses of assistance programs. Other efforts by the Small Business Administration, New York City and State, banks, and nonprofit organizations have provided critical assistance to address the immediate and additional unmet needs of small businesses.
United States. General Accounting Office
2002-11-01
