Katrina Road Home Money Tied Up in Congress

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By Georgianne Nienaber (about the author) Page 2 of 3 page(s)

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The Road Home program was created in 2006 by Governor Kathleen Blanco, the
Louisiana Recovery Authority, and the Office of Community Development. The
program is funded by the U.S. Department of Housing and Urban Development.

Out-going Louisiana Governor Blanco spent several days in mid-October at the white house trying to get the feds to cough up the money promised over a year ago. We will say it again.

George Bush stood in New Orleans’ Jackson Square shortly after Katrina and promised the people of New Orleans and Governor Blanco the money to rebuild. Now, the money is tied to Iraq spending bills. No surprise there.

Bush dressed the wounds of the poor people as if they were nothing.

According information supplied by Governor Blanco’s office, About 70,000 homeowners in Louisiana have received the grants. Checks are supposedly going out at the rate of 10,000 per month. Unbelievably, the program is scheduled to run out of money in December, leaving thousands of Katrina victims holding the bag. The average award is $70,000 per homeowner. IF they qualify.

Marie Centanni, the Louisiana Governor’s press spokeswoman told OPED NEWS that there is a $4.5 billion shortfall to cover all eligible homeowners. Louisiana homeowners are eligible for the grants. But funding for the program was based on a Federal Emergency Management Agency estimate that only about 120,000 homeowners would qualify. Louisiana has contributed $1 billion from its own funds to help cover the shortfall, and Louisiana officials are seeking $3.3 billion in new money from Congress.

Centanni also told OPED NEWS that although 184,000 have applied for Road Home money, it is expected that only about 160,000 will be eligible. The obvious math leaves 70,000 without any potential aid.

Since Congress has approved already $1.2 billion in federal hazard mitigation funds, Louisiana is hoping for some flexibility. The original $1.2 billion is tied up in FEMA red tape. The state is counting on winning approval to spend the money on the Road Home Program. The hitch is that the grant has been earmarked for hazard-mitigation and not home rebuilding--a difference of semantics.

Road Home is money with no strings attached.

Bush may have promised the money, but the Democratic Congress is in the driver’s seat. Throughout their three day trip to Washington, Louisiana officials met with administration officials and key leaders in the House and Senate including: Al Hubbard, assistant to the president for economic policy, Coordinator of Gulf Coast Recovery Donald Powell, House Speaker Nancy Pelosi, Majority Whip Jim Clyburn, Senate Minority Leader Mitch McConnell, Senate Appropriations Assistant Senate Majority Leader Richard Durbin, Congressional Black Caucus Chairman Caroline Kilpatrick and members of the Black Caucus, and Democratic Caucus Chairman Rahm Emanuel and members of the Democratic Caucus.

Congress dressed the wounds of the poor people as if they were nothing.

Days without number.

The Louisiana Recovery Authority supplied additional information on the devastation and the role of LRA to OPEDNEWS.

Spokesperson Melissa Landry told us that "Congress has committed to help us fund the shortfall in the Road Home program, but it hasn't decided how or when it will do that yet."

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives (according to estimates), destroying more than 200,000 homes and 18,000 businesses. LRA is the planning and coordinating body that was created in the aftermath of hurricanes Rita and Karina by Governor Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions and supporting community recovery and resurgence.

The LRA is trying to dress the people’s wounds.

Despite a threat to delay an emergency spending bill until 2008, Democratic congressional leaders say there is still a chance this year to fill the gap in Louisiana's Road Home program before money runs out.

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Georgianne Nienaber is an investigative environmental and political writer. She lives in rural northern Minnesota, New Orleans and South Florida. Her articles have appeared in The Society of Professional Journalists' Online (more...)

The views expressed in this article are the sole responsibility of the author
and do not necessarily reflect those of this website or its editors.