This story is reprinted with permission from FC&&S Legal, the industry's only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

The Federal Emergency Management Agency (FEMA) has awarded $229,627,041.30 in new federal funding to the Port Authority of New York and New Jersey to make repairs to 22 sites on the Holland Tunnel damaged as a result of Superstorm Sandy.

The 90 year old tunnel, the first mechanically ventilated underwater tunnel in the world, connects Manhattan in New York City to Jersey City, New Jersey.

FEMA provides funding for infrastructure upgrades under Section 406 of the Stafford Act, the federal disaster law that supplies aid to states and localities to implement long-term resiliency measures after a major disaster. The purpose of these grants is to reduce the loss of life and property due to natural disasters and to enable mitigation measures to be implemented during the immediate recovery from a disaster.

Tunnel flooded by storm surge

“The Holland Tunnel was severely flooded by storm surge after Superstorm Sandy and repairs were sorely needed in order to ensure it would continue to serve as a main commuting artery in New York City,” U.S. Senator Charles E. Schumer (D-NY) said in a statement. “I am pleased that FEMA is providing the federal funds needed to restore this critical infrastructure and help make the Holland Tunnel better protected in the event of a future storm. This investment also means that local taxpayers will not bear the entire burden of these necessary repairs.”

“This investment will help strengthen critical transportation infrastructure here in New York City,” said Senator Kirsten Gillibrand (D-NY). “These FEMA funds will help secure the Holland Tunnel by reinforcing areas damaged by Hurricane Sandy and making long overdue repairs to keep drivers safe. I will continue to do everything I can to make sure that the places in our state hit by Superstorm Sandy have all the resources they need to fully rebuild.”

Critically-needed repairs

“Superstorm Sandy not only wreaked havoc on our homes and communities, but also accelerated the deterioration of our aging infrastructure, including our roads, bridges, and tunnels,” said Senator Bob Menendez (D-NJ). “The safety and resilience of the Holland Tunnel is vital to New Jersey's and the regional economy. This welcome investment from FEMA will help advance critically-needed repairs and ensure that New Jersey's infrastructure emerges safer and stronger than ever before.”

“Hurricane Sandy left our already crumbling transportation networks in dire need of repair,” added Senator Cory Booker (D-NJ). “This federal investment will help strengthen the Holland Tunnel and make this critical infrastructure more resilient in the face of future disasters while prioritizing driver safety.”

Steven A. Meyerowitz, Esq., is the director of FC&S Legal, the editor-in-chief of the Insurance Coverage Law Report, and the founder and president of Meyerowitz Communications Inc. Email him at smeyerowitz@meyerowitzcommunications.com.

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FEMA to pay 90 percent of costs to repair damage to Holland Tunnel caused by Sandy

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