Report: Only $25m of $2b Katrina relief aid has been spent

RAW STORY
Published: March 8, 2006


Just $25 million of $2 billion in funding designated for states afflicted by Hurricane Katrina has been spent, a new report from the Center for Public Integrity will report late Wednesday afternoon, RAW STORY has learned.

The shocking revelation that evacuees have been turned out while more than a billion dollars remains in relief aid comes as President Bush visits New Orleans today for the 10th time since Hurricane Katrina struck. Billions of dollars designated for hurricane relief have gone unused by state governments.

Jenni Bergal, the reports' author will write, "Just weeks after Hurricane Katrina struck the Gulf Coast, Congress scrambled to pass an emergency bill that gave states access to $2 billion to help low-income hurricane victims scattered across the country… But more than five months after the bill was signed into law, only 12 states - including Louisiana, Mississippi and Alabama - have taken Congress up on its offer."

In addition, the Center for Public Integrity will also note:

o As of Feb. 4th, U.S. Department of Health and Human Services records show that only $25.48 million of the $2 billion "Temporary Assistance for Needy Families" (TANF) funds had been awarded.

o State's lack of interest in TANF funds has surprised federal officials and alarmed advocates for the poor, who say that low-income Katrina evacuees need all the help they can get.

o Some large states, such as California, New York, Illinois and Pennsylvania never requested any of the TANF contingency money for evacuees.

o Even some border states, such as Arkansas, decided not to ask for the money.

o Among the states that did request the contingency money are Florida, Texas, Georgia, Minnesota and Michigan.