Reps. Watson Coleman, Pallone, Kim Applaud Indefinite Extension of Clawbacks in Federal Spending Bill
Representatives Bonnie Watson Coleman (NJ-12), Frank Pallone, Jr. (NJ-06), and Andy Kim (NJ-03) today applauded an indefinite extension of recoupment efforts for debt owed to the federal government in relation to Superstorm Sandy that has been included in the Omnibus Fiscal Year 2023 package. These recoupment efforts known as “clawbacks” have blindsided homeowners because many New Jersey residents applied for loans and benefits offered by various federal programs at the recommendation of the government. The reprieve provides relief for approximately 1,700 households in New Jersey that owe millions of dollars.
“New Jersey families were decimated by Superstorm Sandy and are still on the hook for millions of dollars in federal clawbacks through no fault of their own. An indefinite extension in recoupment of these funds will help hundreds of New Jersey families. My colleagues and I will continue fighting for total forgiveness so residents can have the peace of mind they deserve,” said Congressman Pallone.
The indefinite extension will provide relief for families currently required to pay back disaster relief funds they received after Superstorm Sandy. Many homeowners who received relief funds have been required to repay some or all the funds, creating a financial burden.
“America came together after Superstorm Sandy to help New Jerseyans through a very dark period,” said Congresswoman Watson Coleman. “Now those families can finally put this decade long nightmare behind them. The burden of having to pay back repair money that was erroneously given to them through no fault of their own is finally being lifted. I’m grateful to my colleagues, Congressmen Frank Pallone and Andy Kim for their tireless work to see this chapter finally closed.”
“It’s been over a decade since Superstorm Sandy first made landfall in New Jersey and a lot of my neighbors are still burdened with the debt taken on to repair their homes. Two years ago, we were able to cancel loans for a lot of municipalities that were struggling, last year we got homeowners relief until 2025, and this year we expanded that relief indefinitely,” said Congressman Kim. “I’m proud to get some relief for homeowners and move one step closer to total forgiveness on loans that have plagued this community for far too long.”