Hurricane Irene Aftermath: Storm Will Cost Federal Taxpayers $1.5 Billion

WASHINGTON -- The White House estimated on Monday that Hurricane Irene will cost federal taxpayers $1.5 billion in disaster relief, further ballooning a government account that was already the focus of fresh partisan friction between President Barack Obama and Congress.

The preliminary estimate, released by White House budget director Jacob Lew, is on top of $5.2 billion needed for other recent disasters, including tornadoes that leveled much of Joplin, Mo. Lew said the $1.5 billion should last through next year.

The Obama administration has said last month's debt ceiling deal with Congress allows the government to pay for disaster spending by borrowing, which increases federal deficits. That is a long-time practice for financing emergencies. The House's No. 2 Republican, Majority Leader Eric Cantor of Virginia, has said disaster spending should be offset by cutting other parts of the budget.

In a blog he posted announcing the initial estimate, Lew said the administration would work with Congress to finance the disaster spending but he showed no sign that the administration would back down.

"We are one country. A disaster in one corner is felt by Americans all across our land. That is why when it comes to taking care of our neighbors in need, we will not let politics get in the way and will do what is right to help them recover and rebuild," Lew wrote.

The cost estimate comes as Congress is returning from its summer recess. A Senate Appropriations Committee subcommittee, headed by Democrats, is scheduled to meet Tuesday to consider a spending bill that includes disaster aid.

Hurricane Irene 2011: More Than 2 Million People Told To Move To Safer Places

As the storm's outermost bands of wind and rain began to lash the Outer Banks of North Carolina, authorities in points farther north begged people to get out of harm's way. The hurricane was still packing 100 mph winds late Friday, and officials in the Northeast, not used to tropical weather, feared it could wreak devastation.

"Don't wait. Don't delay," said President Barack Obama, who decided to cut short his summer vacation by a day and return to Washington. "I cannot stress this highly enough: If you are in the projected path of this hurricane, you have to take precautions now."

Senior hurricane specialist Richard Pasch of the National Hurricane Center said there were signs that the hurricane may have weakened slightly, but strong winds continued to extend 90 miles from its center.

The moment Saturday when the eye of the hurricane crosses land "is not as important as just being in that big swath," Pasch said. "And unfortunately, it's a big target."

Hurricane warnings were issued from North Carolina to New York, and watches were posted farther north, on the islands of Nantucket and Martha's Vineyard off Massachusetts. Evacuation orders covered at least 2.3 million people, including 1 million in New Jersey, 315,000 in Maryland, 300,000 in North Carolina, 200,000 in Virginia and 100,000 in Delaware.

"This is probably the largest number of people that have been threatened by a single hurricane in the United States," said Jay Baker, a geography professor at Florida State University.

NYC Hurricane: Obama Declares Emergency For New York As Hurricane Irene Approaches

WASHINGTON -- President Barack Obama has declared an emergency for New York state in anticipation of Hurricane Irene, which has New York City in its sights as it storms up the Eastern Seaboard.

The declaration means that the Homeland Security Department and the Federal Emergency Management Agency can coordinate disaster relief efforts. It also means the state can receive federal aid to supplement state and local emergency and cleanup assistance.

The declaration is specifically intended to alleviate the threat of a catastrophe in the counties of Bronx, Kings, New York, Queens, Richmond, Nassau and Suffolk.

The brunt of the storm is expected to hit the New York City area and Long Island on Sunday.

The hurricane threatens up to 65 million people along a path from North Carolina to New England.

Hurricane Irene 2011: Storm Barrels Toward East Coast, Governors Declare Emergencies

BUXTON, N.C. -- A monstrous Hurricane Irene tightened its aim on the Eastern Seaboard on Thursday, threatening 65 million people along a shore-hugging path from North Carolina to New England. One of the nation's top experts called it his "nightmare" scenario.

The Category 3 storm with winds of 115 mph – the threshold for a major hurricane – would be the strongest to strike the East Coast in seven years, and people were already getting out of the way.

Tens of thousands fled North Carolina beach towns, farmers pulled up their crops, and the Navy ordered ships to sea so they could endure the punishing wind and waves in open water.

All eyes were on Irene's projected path, which showed it bringing misery to every city along the I-95 corridor, including Washington, New York and Boston. The former chief of the National Hurricane Center called it one of his three worst possible situations.

"One of my greatest nightmares was having a major hurricane go up the whole Northeast Coast," Max Mayfield, the center's retired director, told The Associated Press.

Hurricane Irene Batters Smaller Islands Of Bahamas Video

A large and powerful Hurricane Irene roared across the Bahamas archipelago on Wednesday, pummeling the country's smaller, less-populated islands while posing less of a threat to the capital, a major tourist destination with 200,000 residents. (Scroll down for photos)

There were no immediate reports of major injuries or deaths but property damage appeared likely to be extensive on Acklins and Crooked islands, in the southern part of the chain, said Capt. Stephen Russell, director of the country's National Emergency Management Agency.

A settlement known as Lovely Bay was destroyed while at least 40 homes were badly damaged on the island of Mayaguana, the agency said. Authorities were still gathering damage reports and there were few details on the destruction.