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NO CLAWS Act Would Forbid Unexpected Recoupment of Disaster Aid from Homeowners

U.S. Rep. Jeff Van Drew (R-2nd)

By Press Release

WASHINGTON – U.S. Rep. Jeff Van Drew (D-2nd) introduced the Nation Owes Community Lifelines After Weathering Sandy (NO CLAWS) Act, a bill to protect natural disaster victims from government clawbacks which occur when victims are awarded disaster assistance and then are told they need to return some or all of that aid. 
According to a release, the NO CLAWS Act prevents the Federal Emergency Management Agency (FEMA) from recouping disaster and emergency assistance from individuals and households.
In the wake of Superstorm Sandy, FEMA attempted to recoup more than $6.5 million from nearly 1,000 New Jersey homeowners claiming that they were mistakenly overpaid. 
According to the agency, those clawbacks were a result of mistakes made during the auditing of disaster assistance funds – a mistake made by FEMA and not by the homeowner. 
The FAA Reauthorization Act of 2018, which set a three-year statute of limitations for this practice, did not completely address this issue so it must be done. 
In the private sector, insurance companies cannot demand money back unless they have proven fraud. The government should not be an exception.
“The devastation of Superstorm Sandy was widespread in South Jersey. Some members of our community have still not fully recovered. On top of the devastating damage and the effects that this storm had on our community, many New Jersey homeowners became victims of these unexpected government clawbacks,” stated Van Drew. “That is why I have introduced the NO CLAWS Act, a common-sense bill to protect the victims of natural disasters.”

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