These include direct payments of €20,000 to €60,000 to owners of damaged homes, among other financial assistance to businesses and municipal authorities.
“We have a lot of work to do and we know it,” Mr. Sanchez said.
Mr Sanchez said he would ask the European Union to help pay for the relief.
Thousands of soldiers are working with firefighters and police reinforcements in the massive emergency response in areas of eastern Spain, including hard-hit Valencia.
Officers and soldiers search in destroyed homes, countless cars scattered on highways, streets or in the mud in ditches and ravines.
Authorities are worried about other health problems caused by the effects of the deadliest natural disaster in Spain’s recent history.
They urged people to get tetanus shots and treat all wounds to prevent infections and clean their skin of mud. Many people wear face masks.
Thousands of volunteers are helping fill the gap left by the authorities. But frustration with the handling of the crisis boiled over on Sunday as a crowd in hard-hit Paiporta hurled mud and other objects at Spain’s royals, prime minister and regional officials as they made their first visit to the epicenter of flood damage.