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Representatives from New York, New Jersey, and Connecticut will introduce the bill early next week.

Among the key provisions are allowing homeowners to deduct losses not covered by insurance, and letting people draw from retirement accounts without penalties.

Business owners who don't qualify for Small Business Administration loans would also be able to deduct rebuilding costs.

"The Superstorm Sandy efforts have really been about trying to find solutions," Republican Staten Island Rep. Michael Grimm said. "Trying to find the answers to problems and not get mired down in politics."

"Over 15 percent of the economy of the country comes out of this region," Democratic Queens and Bronx Rep. Joseph Crowley said. "The longer it takes for our region to come back, the bigger the drag it will have on the rest of the nation."

Lawmakers say they will fight tooth and nail to get the measure passed, along with the $60.4 billion aid package the president wants.

The Senate has drafted a version of the relief package, but some Republicans have said they want to take a more detailed look at the damage before deciding how much funding to approve.