Obama rules floods ‘major disaster’ as states count cost of Irene

His ruling allows North Carolina and New York states to tap into extra funds to aid their relief efforts.

Mr Obama also extended the disaster zone yesterday, signing emergency declarations for other states including Vermont in New England.

States along the eastern seaboard are struggling with the effects of Irene, a hurricane which was downgraded to tropical storm status when it hit America’s coast.

Homes and businesses are still facing floods and more than two million Americans were still without power last night.

Parts of New Jersey and Connecticut faced flooding yesterday, though some rivers were beginning to recede.

At least five people died in the Bahamas before Irene hit the US, where she has been blamed for at least 44 fatalities in 13 states. Denise Ruzicka, director of inland water resources for Connecticut’s department of energy and environmental protection, said flood controls that New England states installed after 1955 floods had helped prevent a catastrophe in the lower Connecticut river basin.

She said the water level in all the state’s rivers was now falling. “The worst is over,” she added.

Recovery efforts saw people moving out of emergency shelters in western Massachusetts, farmers in New York’s battered Schoharie Valley assessing crop losses and at least one insurance agent in Pawtucket, Rhode Island, fielding dozens of phone calls from customers making damage claims.

“The majority of the claims are trees down,” said agent Melanie Loiselle-Mongeon. “Trees on houses, on fences, on decks, on cars.”

In Vermont, officials focused on providing basic necessities to residents who in many cases still have no power, no telephone service and no way to get in or out of their towns.

On Tuesday night, 11 towns were still cut off. But by yesterday morning, all but one of the communities – Wardsboro – had been reached by ground crews, emergency management officials said. It was hoped that Wardsboro could be reached soon, said emergency management spokesman Robert Stirewalt.

Vermont National Guard delivered emergency food, blankets, tarpaulins and water by helicopter and lorry.

President Obama’s declaration of a major disaster in New York yesterday freed up federal recovery funds for people in eight counties.

Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programmes.

Tropical Storm Irene destroyed 500 to 600 homes and thousands of acres of farmland in upstate New York.

Federal Emergency Management Agency administrator Craig Fugate said the call on assistance funds would have no negative impact on the agency’s efforts to help stricken states along the east coast.

The agency has less than $800 million (£490m) left in its disaster coffers.

“We’re going to do what we’re supposed to do,” said Mr Fugate.

Total losses from the storm along the US Atlantic Coast – including damage and expenses incurred by governments – are likely to be about $7bn (£4.3bn), according to Jan Vermeiren, chief executive of Silver Spring, Maryland-based risk consultant Kinetic Analysis Corp., which uses computer models to estimate storm losses.

In North Carolina, tropical storm Irene gusted ashore along the Outer Banks on Saturday before heading north to New York and finally New England, Governor Beverly Perdue said the storm destroyed more than 1,100 homes and caused at least $70 million (£43m) in damage.

A disaster declaration in the United States is only granted by the president upon request from a state when the cost of damage is so great that the state needs additional funding for relief operations.

Emergency declarations apply in less severe situations but must still be requested from the president on a state-by-state basis.