FEMA's acting chief and his successor lacked legal authority to dismantle its infrastructure resilience program, states argue in a federal district court lawsuit.
After first approving the city's flood repair cost at $1.1 million, the federal emergency response agency later said it was only entitled to about $200.
But House committee members voiced strong support to keep agency in tact, saying a federal role in disaster response is vital, even as they called for changes in approach.
March 18 order follows layoffs of more than 200 Federal Emergency Management Agency employees and a Jan. 24 order for a task force review of agency disaster response efficiency.
Resilience work at developing New York City manufacturing and tech hub is set to restore infrastructure damaged by 2012 Hurricane Sandy and other storms