The aid is part of $2.5 billion the federal government plans to distribute to the state and cities damaged during the punishing storm in the third and final round of a flexible grant program, a government official with knowledge of the plan said.
That leaves the Department of Housing and Urban Development with about $1.1 billion left to spend.
Members of Congress from New Jersey and New York have been petitioning the federal government in recent weeks to prioritize the distribution of remaining funds, emphasizing that every dollar is needed for recovery efforts 19 months after the state was battered.