FEMA Funds Obligated for Regional Transit Authority 

Over $40 million to replace buses and streetcars lost in Katrina

Release Date: October 31, 2006
Release Number: 1603-568

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NEW ORLEANS, La. -- The Department of Homeland Security's Federal Emergency Management Agency announced today that $43 million has been obligated to replace the buses and rebuild the streetcars that were damaged when Hurricane Katrina ripped through Louisiana last year.

Included in these funds is $21.6 million to rebuild 24 Canal Street streetcars . The money recently obligated will be used for this purpose, in order to return the streetcars to their pre-disaster design, function and capacity, part of FEMA's responsibility after a declared disaster.

Katrina's high winds, heavy rains and extensive flooding also caused damage to more than 200 buses , which sustained over five feet of standing floodwater for several weeks after the hurricane. Some of the water contained a mixture of oil and gas, which caused corrosion to the buses and rendered them unusable. The money obligated today will be used to replace the buses, in addition to reimbursement for new bike racks, camera systems and vehicle radios.

This announcement brings the total money FEMA has obligated for emergency costs, debris and rebuilding the Louisiana infrastructure after Hurricanes Katrina and Rita to more than $4 billion. More money will be obligated as other projects are approved.

When projects are obligated by FEMA, the funds go into an account the state can draw money from through a simple transaction. The state generally receives the funds within 72 hours. It then disburses the money to the agency doing the project. The state may require additional documentation before it releases the money to the local applicant.

The Public Assistance program works with state and local officials to fund recovery measures and the rebuilding of government buildings, roads and bridges, schools, water and sewer plants, recreational facilities owned by government agencies, some facilities owned by nonprofit agencies, and other publicly owned facilities. FEMA can set aside money to bring each project back to its pre-disaster function and capacity, and the state distributes the money. In order for the process to be successful, federal, state and local partners coordinate to draw up project plans, fund these projects and oversee their completion.

FEMA manages federal response and recovery efforts following any national incident, initiates mitigation activities and manages the National Flood Insurance Program. FEMA works closely with state and local emergency managers, law enforcement personnel, firefighters and other first responders. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.

Last Modified: Tuesday, 31-Oct-2006 13:16:10