FEMA Coordinating Federal Efforts To Assist Economic Recovery In Louisiana 

Release Date: November 7, 2005
Release Number: HQ-05-364

» More Information on Louisiana Hurricane Katrina

The federal government is playing a major role in jump starting economic recovery in Louisiana. The Department of Homeland Security's Federal Emergency Management Agency (FEMA), working in partnership with state and local officials, continues to facilitate the federal government's role in all aspects of recovery in Louisiana and the Gulf Coast region. With last week's appointment of a primary coordinator of long-term recovery efforts and the steady, significant flow of federal financial assistance into the state of Louisiana, the federal government remains committed to the recovery of the state and its residents.

Don Powell was appointed last week as the primary coordinator of long-term recovery and rebuilding for the Gulf Coast. Powell, who serves as chairman of the Federal Deposit Insurance Corporation (FDIC), will serve as the President's primary point of contact with state and local governments, the private sector, and community leaders. By Executive Order, the President is also establishing the Gulf Coast Recovery and Rebuilding Council. The Council will serve as a forum for the Coordinator that will develop and review Administration policies in support of the rebuilding of the Gulf Coast.

Since Hurricane Katrina, the President has obligated $22 billion in relief and recovery funding for the Gulf Coast from the Disaster Relief Fund. Of this funding, $11 billion has been obligated for projects in Louisiana, including:
  • Housing Assistance: over $4 billion to aid those displaced by Hurricane Katrina or Rita with reimbursements for lodging, rental assistance, home repair, home replacement grants, and manufactured housing.
  • Infrastructure: $970.6 million for emergency shelters, repairs of public roads, and other infrastructure rebuilding for Hurricanes Katrina and Rita.
  • Human Services: $204.4 million obligated for crisis counseling, legal services, medical costs, transportation assistance, and other needs.
In addition, the Army Corps of Engineers has allocated $2.3 billion for projects in Louisiana to rebuild levees and reopen the navigation channels so important to the region's maritime industry.

State and local government relief has been provided by FEMA. FEMA extended the deadline of 100 percent federal reimbursement from the usual 72 hours to more than 60 days Hurricanes Katrina and Rita making landfall to allow Louisiana to continue debris removal and emergency work with no state or local cost share. Since Hurricanes Katrina and Rita struck, this has meant relief of more than $293 million for Louisiana's state and local governments.

FEMA approved the first round of Community Disaster Loans (CDLs) last week to help devastated areas maintain essential services as they work to recover from the Gulf Coast hurricanes. This initial round provides funds directly to eight communities, including $120 million for the City of New Orleans. The Orleans Parish Criminal Sheriff will receive a loan for more than $18 million and the St. Bernard Parish School Board will also receive nearly $18 million.

FEMA announced open competition of 15 contracts totaling $100 million each for small and minority-owned businesses, with preference given to Gulf Coast businesses. These five-year contracts will provide temporary housing maintenance and support in the Gulf States and have a combined value of up to $1.5 billion. Businesses in the Gulf States will be given preference for the awards and all 15 contracts will be awarded to either small businesses or small disadvantaged businesses that meet Section 8(a) requirements under the Small Business Act.

The Administration proposed an initial $17 billion to rebuild after Katrina, including over $6 billion for Louisiana. The package unveiled Oct. 28 includes funding to rebuild critical infrastructure and continue recovery efforts in Louisiana. Included in the package are funds to rebuild Louisiana's transportation infrastructure, repair military bases, and jump start the state's damaged economy.

The rebuilding package includes:
  • Military bases: $1.97 billion for the Department of Defense to repair damaged bases and assist evacuated personnel in Louisiana. The funding will support the over 5,200 military personnel and their families who live in Louisiana.
  • Veterans Health Care: $967 million to rebuild the New Orleans Veterans Hospital. The hospitals' 1,700 health care professionals provide care for over 222,000 veterans throughout Southeast Louisiana.
  • Transportation: $932 million for the Department of Transportation, including $900 million for highways, $24 million for federal air traffic control infrastructure, and $8 million to replace a MARAD-owned pier and warehouse. The request also seeks additional funding to support eligible federal-aid highway projects for which the extent of damage and costs are still unknown at this time.
  • NASA: $144 million for NASA to conduct property repairs, emergency operations, damage evaluations, and other storm-related activities at Michoud Assembly Facility in New Orleans. With approximately 2,000 employees, this funding will repair one of New Orleans's major employers.
  • Block Grants: The state of Louisiana will receive a significant portion of the $1.5 billion in Community Development Block Grants and $500 million in Social Services Block Grants proposed for the Gulf region states.

The President has proposed a Gulf Opportunity Zone to spur economic growth. The President proposed to create a Gulf Opportunity Zone (GO Zone) to help local economies in Louisiana, Mississippi, and Alabama devastated by Hurricane Katrina. Approximately $2.3 billion over five years in tax relief and loans would be provided to businesses and entrepreneurs to help local economies in Louisiana, Mississippi, and Alabama. Businesses in the GO Zone would be eligible for the benefits through 2007.

The President has proposed Worker Recovery Accounts to help those who need extra help finding job. These new Worker Recovery Accounts will provide targeted assistance for those victims of Hurricanes Katrina and Rita who need extra help finding work. The President has proposed $650 million for self-managed accounts that would provide up to $5,000 to certain displaced workers to pay for employment counseling, job training, or job-necessary supplies, child care or transportation. Workers finding jobs within 13 weeks of receiving an account will receive a reemployment bonus of up to $1,000 out of the funds remaining in their account.

FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.

Last Modified: Tuesday, 08-Nov-2005 09:26:37