The President Orders FEMA Financial Aid
Wednesday, September 07, 2005PAUL KANGAS: President Bush today asked Congress for almost $52 billion to help recover from hurricane Katrina. The bulk of that, $50 billion is for FEMA, the Federal Emergency Management Agency. The rest would be earmarked for the Defense Department and the Army Corps of Engineers. But as Stephanie Dhue reports, this won`t be the last request for cash for the relief effort.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: FEMA is spending more than a billion dollars a day on the recovery effort. Worries that the agency could run out of money by the end of the week prompted the administration to request more. Congress is certain to deliver.
DENNIS HASTERT, HOUSE SPEAKER: We`re committed to the residents of the Gulf coast and we`re doing everything we can to get them help and get them on their feet.
DHUE: $100 billion has already been set aside to go directly to Katrina victims. FEMA is distributing debit cards worth $2,000 to pay for clothing, minor repairs and other needs.
MICHAEL BROWN, DIRECTOR, FEDERAL EMERGENCY MANAGEMENT AGENCY: The concept is to get them some cash in hand, which allows them, empowers them, to make their own decisions about what do they need to have to start rebuilding their lives.
DHUE: Longer term, money will be spent on reconstruction of the basic infrastructure in the region. But it`s unclear just how much that will cost.
DOUGLAS HOLTZ-EAKIN, DIRECTOR, CONGRESSIONAL BUDGET OFFICE: The big unknown is the pace at which New Orleans is to some extent goes past recovery and into reconstruction. There is a standard profile for disasters and in that standard profile people can get back and start rebuilding. That`s not true in New Orleans and that will dictate a lot.
DHUE: The final price tag will also depend on how broadly Congress addresses the problem. Lawmakers are already considering a whole host of new measures, including rebuilding roads and sewer systems, extending unemployment benefits, and even changing tax policy to help businesses recover. Also under consideration is a special agency to oversee relief.
SEN. PETE DOMENICI, CHAIRMAN, SENATE ENERGY AND NATURAL RESOURCE COMMITTEE: I strongly recommend that we suggest to the administration that they quickly decide on some kind of an executive headquarters and chief recovery person so that all of this effort can be coordinated.
DHUE: Congressional leaders are also forming a joint bi-partisan committee to study what went wrong with the early response to the disaster. The committee`s findings are due no later than February 15. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
