Transcripts

Hurricane Katrina Is Now A Capital Concern On Capitol Hill

PAUL KANGAS: Also in Washington, lawmakers are considering ways to cut red tape and quickly get more help to the Gulf region in the wake of Katrina. Obviously that wasn`t on Congress agenda when it recessed for the summer. But as Stephanie Dhue reports, the storm and its aftermath are redefining legislative priorities.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Hurricane Katrina is now the number one priority for Congress. In the past week, lawmakers approved $62 billion in aid, held hearings on surging gas prices, and moved to ease student loan payments and welfare work rules for people devastated by the hurricane.

SEN. BILL FRIST, SENATE MAJORITY LEADER: We will continue to focus on legislation that answers that immediate response and relief. Moving other business aside, thousands of people need our help and three states need to recover and rebuild.

DHUE: President Bush will head back to the Gulf region this weekend. And Katrina overshadowed the president`s schedule today, including a commemoration for September 11 emergency workers who lost their lives.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In these difficult days, we have again seen the great strength and character and resolve of America and we will continue to work to help the people who are struggling.

DHUE: Analysts say Katrina will set back the president`s agenda. Already, a $35 billion deficit reduction package has been delayed in Congress. The president`s tax reform panel now says it will be at least October until its report is finished. And Social Security reform, which was already on shaky ground, now has almost no chance of passing.

JOE LIEBER, POLITICAL ANALYST, WASHINGTON ANALYSIS: The rest of the year is going to be filled with Supreme Court nominees, filling those two vacancies, dealing with post Katrina issues, whether they be appropriations or revamping FEMA, et cetera, et cetera and with the appropriations process. And that`s probably it.

DHUE: Analysts say second tier issues, like asbestos liability reform, creating a new regulator for Fannie Mae and Freddie Mac, and drug re- importation will get neglected. There may be efforts to tack on unrelated items, like pension reform, to any new Katrina relief bills. But analysts say it`s unclear if that strategy will work and they expect many issues to slide to the back burner. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.