Bush seeks more cash to rebuild Louisiana
WASHINGTON – In an unexpected breakthrough in negotiations with Louisiana officials, the Bush administration announced Wednesday that President Bush will ask Congress for an additional $4.2 billion to help the state repair and rebuild homes battered by Hurricanes Katrina and Rita.
Federal support for housing reconstruction, which has been the subject of protracted negotiations between Washington and local officials, is considered a prerequisite for wider recovery because it opens the way for thousands of people made homeless by the storm to return to New Orleans and surrounding areas.
On Wednesday, Louisiana officials stressed how crucial they felt housing was to the region’s economic recovery. “The reality is there’s an awful Catch-22 in Louisiana, and that is that people want to return, they want to put their kids back in school, they want to go back to work, but they can’t do that, because there’s no place for them to live,” said Rep. Bobby Jindal, R-La.
The funds, which must be approved by Congress and are conditional on federal approval of a statewide recovery plan, are part of an estimated $18 billion spending plan for Gulf Coast reconstruction that the administration is scheduled to release today. The funds will be included in the supplemental budget request Bush will send to Congress.
Louisiana officials had complained that the administration wasn’t providing enough housing help to allow the region to recover fully.
On Wednesday, there was nothing but praise. “On behalf of the people of Louisiana, I have to say a very special thank you to the president,” said Gov. Kathleen Blanco, a Democrat who has often crossed swords with the administration over Katrina.
The $4.2 billion comes in addition to $6.2 billion that has already been approved to repair housing damage. It puts the total funds available for Louisiana housing at $12 billion, including hazard mitigation funds from the Federal Emergency Management Agency. Although the $6.2 billion was slated for homeowners who didn’t have insurance because they lived outside the flood plain, the new funding will be available to people throughout the state, within or outside of the flood zone, insured or uninsured, said Sean Riley, Louisiana Reconstruction Authority member.