Two federal lawmakers from New Jersey plan to introduce legislation next week that would prevent the federal government from taking back aid it mistakenly gave to Superstorm Sandy victims.
Sen. Robert Menendez and Rep. Frank Pallone will introduce bills that would prohibit the federal Emergency Management Agency from issuing so-called “clawback” letters demanding repayment of aid it wrongly awarded to homeowners.
The law would not apply to cases of fraud.
They estimate 3,000 homeowners in New Jersey and New York have gotten repayment demands so far.
The Democratic lawmakers say it’s designed to help storm victims who applied for aid and were later found to be ineligible or overpaid through no fault of their own.
They say that much of that money has already been spent on repairs.