The 18-Month Anniversary of Hurricane Katrina - Progress Made and Lessons Learned
An Update on Rebuilding the Gulf Coast
President Bush continues to fulfill his promise to help rebuild the Gulf Coast— a region devastated by an unprecedented natural disaster. Hurricane Katrina was the worst natural disaster in the history of the United States—more than 90,000 square miles were impacted, an area the size of Great Britain. In New Orleans, more than 80 percent of the city flooded—an area 7 times the size of Manhattan. More than 1.5 million people were directly affected and more than 800,000 people were forced to live outside of their homes.
In the 18 months since Hurricane Katrina struck the Gulf Coast, there has been tremendous progress—but much work remains before the people and communities along the Gulf Coast are truly made whole. President Bush pledged to do whatever it takes to rebuild the Gulf Coast, and his administration is following through on the President's strong and steadfast commitment.
The American taxpayers have committed more than $110 billion to help rebuild the Gulf Coast. More than $85 billion of the $110 billion either has been disbursed or is available for the states to use.
The Federal government remains committed to fulfilling the President's strong and steadfast commitment to assisting the Gulf Coast. Although many of the current issues facing the region must be resolved by the state and local leadership, the Bush Administration is actively engaged, with Federal Coordinator Donald Powell and the Office of Gulf Coast Rebuilding continuing to assist state and local officials with resolving many of the outstanding issues facing the region, including additional federal resources to fight crime, improve health care and strengthen levees.
The President's vision, policies and actions are laying the foundation for a rebuilt New Orleans that is better and stronger. President Bush is leading an unprecedented Federal commitment to help state and local leaders transform entire systems—including education, housing and health care—that in many instances had failed many of our most vulnerable citizens for years before Katrina.
Completely rebuilding the Gulf Coast will take time and perseverance. The Federal taxpayers have laid the foundation. We will continue to provide assistance and guidance, but it's up to the local people and the leaders they have elected to drive the rebuilding effort and plan their destiny.
Below is a partial list of current Federal efforts underway to help rebuild the Gulf Coast.
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Providing The Resources Needed To Help Rebuild The Gulf Coast
More than $110 billion in Federal resources have been committed to rebuild the Gulf Coast, including:
- The Federal Emergency Management Agency (FEMA) has provided more than $4.7 billion to remove debris and repair and rebuild public infrastructure and buildings, including sewerage and water systems, roads and bridges, and public buildings such as schools and fire stations.
- The U.S. Department of Housing & Urban Development (HUD) is administering nearly $17 billion in flexible Community Development Block Grants to rebuild homes and improve public housing stock, the largest housing recovery program in U.S. history.
- The U.S. Army Corps of Engineers has received almost $6 billion to repair and restore levees and strengthen the New Orleans-area flood protection system.
- The National Flood Insurance Program (NFIP) paid out $16.1 billion in claims and has closed almost all claims made by policyholders.
- The U.S. Department of Education has provided nearly $2 billion to help educate displaced students and reopen K-12 schools, colleges and universities.
- Katrina and Gulf Opportunity Zone (GO ZONE) Tax Incentives and Relief provide almost $14 billion in incentives to spur private business investment and economic development to create jobs.
- The U.S. Department of Justice has provided more than $60 million to support Louisiana, the City of New Orleans and Orleans Parish efforts to fight violent crime and rebuild the criminal justice system.
- The U.S. Department of Health & Human Services (HHS) has provided more than $1 billion to cover Louisiana's health care costs.
- President Bush supported efforts by the state of Louisiana to gain the ability to share in revenues from drilling along the Outer Continental Shelf (OCS)–after nearly 60 years of Louisiana attempting to gain access to this funding source. Louisiana has promised to use these funds—possibly hundreds of millions of dollars in the coming years—to restore their coastal wetlands, which will help defend against future storms.
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Rebuilding Housing and Infrastructure, Strengthening Communities and Debris Removal
Rebuilding
Homes
President Bush secured
$16.7 billion in Community Development Block Grant (CDBG) funding to rebuild housing
and infrastructure—the largest housing recovery program in U.S. history.
- HUD's Community
Development Block Grant program is helping thousands of homeowners rebuild
their homes and will enable communities to restore damaged public housing,
promote affordable rental housing and restore critical infrastructure.
- The Bush Administration
worked closely with state and local leaders to help them develop smart recovery
plans that will lead to stronger, more vital communities along the Gulf Coast.
- HUD approved the states'
plans to rebuild housing in record time, and the agency continues to provide
support and assistance to the states and ensure federal taxpayer dollars are
spent properly.
Louisiana received $10.4 billion total in CDBG funds
to help homeowners and landlords rebuild.
- Louisiana 's Blanco Road Home program provides up to
$150,000 to compensate eligible homeowners whose primary residences were
destroyed or severely damaged.
- As of February 28, 2007,
Louisiana has distributed more than 2,700 grants under the Blanco Road Home
program.
Mississippi received $5.5 billion total in CDBG funds
to help homeowners and landlords rebuild.
- Mississippi 's Homeowner Assistance Grant Program
provides up to $150,000 to aid households whose primary residences were located
outside of pre-Katrina designated flood zones.
- Mississippi also is using its CDBG funds to assist
public housing authorities, undertake economic development and to address other
unmet infrastructure and disaster-related recovery needs.
- As of February 28, 2007,
Mississippi has distributed more than 11,000 grants under the Homeowner
Assistance Grant Program.
Rebuilding
Public Infrastructure
The Federal
Emergency Management Agency's (FEMA) Public Assistance program helps local
communities rebuild infrastructure, including sewerage and water systems,
schools, fire stations, roads and bridges.
- The State of Louisiana is expected to receive $6.3 billion in Public Assistance funds. To date,
FEMA has approved and made available $4.57 billion in Public Assistance funds; Louisiana has distributed $2.14 billion to the parishes.
- The State of Mississippi is expected to receive $2.3 billion in Public Assistance funds. To date,
FEMA has approved and made available $1.93 billion; Mississippi has distributed
$1.021 billion.
Debris
Removal
Katrina left
extraordinary amounts of debris in its wake.
Debris removal
is critical to the long rebuilding efforts along the Gulf Coast. Since
Hurricane Katrina, FEMA has worked with the U.S. Army Corps of Engineers and
the U.S. Coast Guard to fund the removal of about 108 million cubic yards of
debris along the Gulf Coast.
- In Mississippi, 98% of
all debris has been removed.
- In Louisiana, 82% of all
debris has been removed.
To assist states
with the extraordinary task of removing debris, President Bush extended the
deadline for 100% federal reimbursement of debris removal 5 times for those highly
impacted parishes and counties in Louisiana and Mississippi.
Rehabilitating
Public Housing
President Bush
promised to rebuild New Orleans better—and a rehabilitated public housing
system is a key part of this effort.
- Katrina wrought havoc on
the public housing system in New Orleans —a system that in many regards was
already broken, riddled with crime and hopelessness. All public housing residents
were evacuated as a result of the storm.
HUD and the
Housing Authority of New Orleans (HANO), which had been under HUD receivership
since 2002, are working to temporarily reoccupy the vast majority of public
housing units by the end of June 2007.
- HUD has more than a
dozen staff on-site at HANO to contact families, help manage the process of
bringing units back on-line, make transportation arrangements for families and
help negotiate the early termination of leases when necessary.
- HUD has issued specific
guidance to Public Housing Authorities on relocating families back to the Gulf Coast.
- To assist residents in
the transition, HANO is working with Katrina Aid Today/Odyssey House of New
Orleans to provide case management services to those families currently living
in HANO public housing and those relocating back to the city over the course of
the next year.
HUD is currently
providing rental assistance for approximately 14,500 New Orleans families previously assisted by the Housing
Authority of New Orleans.
- Approximately 5,000 of
the 14,500 families receiving assistance were public housing residents; the
remainder were families receiving rental vouchers. Most of these families are
currently being assisted through HUD's Disaster Voucher Program, which was
created specifically to respond to the needs of displaced residents.
- All New Orleans
residents who lived in public housing pre-Katrina are eligible for
taxpayer-funded housing, in the form of either public housing or rental
vouchers. HUD has increased the voucher subsidy by 45% to offer residents more
options for their use.
- Since the January 2006
inception of the Disaster
Voucher Program, 23,921 leases at an average cost of $864 monthly have been
initiated; the average total monthly cost of the leases is approximately $12.1
million.
- As of January 2007,
nearly $161 million in Disaster
Voucher Program funds have been spent to assist displaced residents.
- HANO is working with
social service providers and employers in Orleans Parish to help keep residents
informed of housing and employment opportunities and assist them once they
return to New Orleans.
Rebuilding
better and stronger means breaking cycles of poverty and hopelessness.
- HUD and HANO have
determined that four of the city 's largest housing projects, consisting of
approximately 4,500 units in St. Bernard, Lafitte, B.W. Cooper and C.J. Peete, are
substandard. Many of these units sat under several feet of water for days
following Katrina.
- HUD and HANO have been
taking steps to demolish and redevelop those projects, with a focus on mixed-income
housing and less reliance on public housing complexes that provide safe and
decent environments in which families can reside. Plans include minimal
temporary repairs, rehabilitation, demolition and rebuilding, and permanent
closure of certain public housing properties.
- To provide a critical
source of funds to finance redevelopment, HANO applied for and received
low-income housing tax credits from the Louisiana Housing Finance Agency. HANO
issued a request for proposals from highly experienced developers to take the
lead in redevelopment efforts. HANO and HUD are currently reviewing these
proposals. More than 3,000 public housing units are expected to be available
in new, vibrant communities when redevelopment is completed.
These plans will
reshape public housing and help further stir economic development, encourage
investment and stimulate economic growth in the region.
HUD recently
created the first-ever National Housing Locator to assist state and public
housing authorities and other first responders in rapidly identifying available
housing during a disaster.
- The National Housing Locator combines federal
housing resources with three commercial apartment locators and housing websites
to give housing agency personnel and emergency responders immediate
accessibility to a one-stop shop for available rental housing resources
nationwide.
FEMA's
Alternative Housing Pilot Program is a $400 million project aimed at expanding
the types of housing FEMA provides disaster-affected communities by
identifying, developing and evaluating alternatives to FEMA travel trailers and
mobile homes.
- In partnership with
FEMA, HUD will conduct an engineering and social science evaluation to assess
their performance and value to the communities.
HUD awarded
$100,000 in Fair Housing Initiative Program funds to both the ACORN Community Land Association of Louisiana and the Texas Workforce Commission.
- These funds will enable
these groups to partner with grassroots and faith-based organizations to
provide fair housing education and outreach to Katrina survivors in southern Louisiana and Texas.
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Restoring and Improving the New Orleans Levees to Provide Stronger Flood Protection
Most of the New Orleans-area population has pre-Katrina levels of levee protection or better.
- President Bush promised a better and stronger hurricane protection system —and secured nearly $6 billion from Congress for the U.S. Army Corps of Engineers to repair and enhance the levees, make the hurricane protection system stronger than ever and begin to develop a comprehensive plan for wetland restoration and even higher levels of hurricane protection.
The Corps repaired and restored more than 220 miles of levees and floodwalls in the months following Hurricane Katrina, and continues its work to strengthen the New Orleans flood protection system.
- The Corps worked 24 hours a day, 7 days a week to complete the repairs to the New Orleans levees. While there have been some delays with this mammoth project due to environmental factors and contractual issues, the Corps has had backup plans in place to provide protection until the work is complete.
The Corps has taken accountability for the levee failures that occurred during Katrina.
- The people of New Orleans and the nation deserved answers to why the levees failed. The Corps convened a group of experts to study why the levees failed; this group determined that the pre-Katrina levee system was “a system in name only” and was only as strong as its weakest link. The Interagency Performance Evaluation Task Force (IPET) determined that a complete holistic approach, rather than a piecemeal approach of individual projects, is needed for a truly complete hurricane protection system.
The New Orleans area has the best flood protection in its history, but it is impossible to completely eliminate risk.
- Hurricane and flood protection systems have one purpose —to reduce risk. This is especially true for areas below sea level with daunting engineering challenges, such as New Orleans.
- It is nearly impossible to design a system that will eliminate all risk of flooding from every conceivable storm or track of storm imaginable—each storm has its own unique characteristics, from storm surge to wind speed to length of storm.
- Citizens must take precautions with respect to safe building standards and property insurance and have an evacuation plan ready in case of an emergency.
If another Katrina were to hit tomorrow, the Corps does not expect New Orleans would have the same catastrophic flooding that occurred during Katrina.
- With the levee repairs in place, New Orleans would not see the extent of damage that occurred during Katrina.
- Until all of the levee work is complete, the New Orleans area could expect to receive substantial flooding if storm surge were to overtop the levees—but the Corps does not expect the catastrophic flooding that caused 80% of New Orleans to be under water for up to 60 days and homes suffering significant structural damage.
The Corps is also studying what it will take to provide even more protection to coastal Louisiana.
- Katrina showed that in order to effectively reduce risk, a hurricane protection system must be comprehensive in scope.
- Per Congressional direction, the Corps is studying what a complete, comprehensive system of hurricane protection would look like. Such a system could include a combination of structural features, such as levees or gates; non-structural features such as enhanced evacuation plans or more rigorous building codes; and restoration of coastal features such as wetlands, which lessen storm surge.
- The Louisiana Coastal Protection Restoration Study will be completed in December 2007, although some recommendations may be ready before the report is completed. Actual construction projects will require authorization and annual funding by Congress.
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Providing Incentives to Strengthen the Economy and Create Jobs
President Bush
is committed to a Gulf Coast that is economically vital and stronger than
before.
Rebuilding the Gulf Coast better and stronger requires more than taxpayer dollars—businesses are critical to
rebuilding the Gulf Coast.
- A central part of
President Bush 's strategy for rebuilding the region is creating the right
environment for business investment and increased investment in job creation.
Katrina and Gulf
Opportunity Zone (GO ZONE) Tax Incentives and Relief provide almost $14 billion
in powerful Federal tax incentives that encourage businesses to invest in the
region.
- Recently, President Bush
secured extension of GO Zone tax credits from Congress in order to help ensure
maximum private sector investment and job creation in the region. The
legislation extended key GO Zone provisions to encourage businesses to build
new structures and purchase new equipment in Mississippi and Louisiana.
- The U.S. Department of
Treasury has provided $600 million in GO Zone tax credits to the Gulf Coast region, with an additional $400 million expected to be awarded in Fall 2007 to
encourage more business investment.
There are many
opportunities for business investment along the Gulf Coast.
- The U.S. Department of Commerce
has played a key role in connecting businesses —especially small, minority,
women-owned and locally-owned businesses—with information about Gulf Coast rebuilding contracting opportunities. The Commerce Department has also assisted hundreds
of minority businesses displaced by the storm with preparing applications for
disaster assistance, emergency loans and insurance claims.
- Commerce Secretary
Gutierrez and Federal Coordinator Powell led a successful trade mission to the Gulf Coast to highlight the many opportunities for business investment. Most recently,
Secretary Gutierrez and Federal Coordinator Powell hosted over 200 business and
community leaders in Washington, D.C., to discuss recovery efforts.
The Bush
Administration continues to promote business opportunities along the Gulf Coast.
- Secretary Gutierrez
launched the Reverse Investment Initiative aimed at mobilizing the U.S. and Foreign Commercial Service 's global resources and expertise to attract foreign
capital to these devastated regions.
- Commercial Service
offices throughout the world have also actively promoted the GO Zone
initiative. In November 2006, Commercial Service offices in Tokyo, Shanghai, Hong Kong and Taipei supported a delegation of 10 state trade and investment
officials.
- The Commerce Department
also plans to lead a business delegation to Louisiana for senior executives
from minority firms to highlight business investment opportunities in Louisiana, particularly in the New Orleans metro area.
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Educating Displaced Students and Helping to Reopen and Rebuild Schools
The U.S. Department of Education has provided nearly $2 billion to help rebuild and reopen
schools and educate displaced students; more than $1.35 billion has been
spent.
In Mississippi, 99% of the schools have reopened. In Louisiana, the number of schools open is
at 94% of pre-Katrina levels (In New Orleans, 56 schools are currently open, or
about half the number pre-Katrina).
Examples of aid sent
to the region include:
- Immediate assistance
to restart schools: $750
million has been provided to help reopen and restart schools in the states most
affected by the storms. Funds have been used to hire teachers, recover student
and personnel data; to replace or repair school district information systems;
to replace instructional materials and equipment, including textbooks; to rent
mobile educational units and lease space; and to recreate instructional plans
and curriculum development.
- Emergency assistance
to educate displaced students (Impact Aid program): $878 million has been provided to assist
local education agencies in 49 states and Washington, D.C., in paying for the
cost of educating more than 150,000 displaced students who were enrolled in
public and non-public schools across the country.
- Charter schools: More than $20 million to help Louisiana open or reopen charter schools. These funds have enabled public schools in New Orleans to reopen as charter schools, expediting the children's education and the
region's recovery. Recently, Secretary Spellings announced another $24 million
in charter school grants to Louisiana.
- Higher Education: More than $250 million for colleges and
universities in Louisiana and Mississippi, including $190 million for the
Louisiana Board of Regents and the Mississippi Institutes of Higher Learning to
assist the recovery of colleges and universities in those states, and $50
million to help defray expenses of the recovery, including reimbursement for
expenses already incurred and construction directly related to damage resulting
from the hurricanes.
- Foreign aid donations: Of the $126 million received in foreign
donations from the U.S. Department of State, $30 million was awarded to assist
higher education institutions in Louisiana and Mississippi with reconstruction.
Another $30 million was directed to K-12 education in Louisiana, and will be
used primarily to reconstruct libraries, science laboratories and early
childhood education centers in public and nonpublic schools in the New Orleans area.
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Improving the Quality of Health Care in Louisiana
A strong health care system is a vital part of any community.
- The U.S. Department of Health & Human Services (HHS) has provided more than $1 billion in Federal resources to cover Louisiana's health care costs, including the cost of serving the state's uninsured residents and the state's share of Medicaid costs in hurricane-affected parishes.
- Recently, HHS announced another $71 million to help Louisiana's hospitals and nursing homes facing financial pressures associated with providing care in a post-Katrina environment. Secretary Leavitt also granted $15 million to help greater New Orleans recruit and retain outstanding physicians, psychiatrists, nurses and other health care professionals.
In Louisiana, the need for fundamental change in the state's health care delivery system was widely acknowledged before Katrina hit.
- Pre-Katrina, Louisiana ranked among the highest in the nation in terms of costs, and among the lowest in terms of quality indicators.
- The state's two-tiered system of care for the poor and indigent, commonly referred to as the “Charity” system, confines the poor and uninsured to separate, overcrowded hospitals. Hurricane Katrina destroyed the Louisiana State University (LSU) Charity Hospital in New Orleans.
Katrina provided an opportunity to fix this ailing system—and to create a health care system that could provide high-quality health care for all patients, regardless of income.
- HHS encouraged the formation of the Louisiana Healthcare Redesign Collaborative, which brought together state and local leaders and subject matter experts to pursue reform.
- HHS has provided extensive assistance to support the Collaborative's efforts to redesign the state's Charity system of indigent care, including providing analysis demonstrating how the state could finance an improved system that would expand access to health insurance for more citizens.
The Bush Administration is committed to helping state and local leaders achieve fundamental reform.
- While some hurdles remain, and Louisiana citizens have to decide for themselves how to press forward with reform, Federal Coordinator Powell, HHS Secretary Leavitt and Veterans Affairs (VA) Secretary Nicholson believe reform is achievable and affordable and will support efforts to create a more efficient, effective and compassionate system of care for all citizens.
The Department of Veterans Affairs is committed to building a new, world-class VA medical center in downtown New Orleans to replace the VA Hospital, which was destroyed by Katrina's floodwaters.
- The new VA facility will support all of VA 's missions of health care, teaching and research to ensure safe, effective and compassionate care for veterans along the Gulf Coast.
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Supporting Efforts to Deter Crime and Keep Communities and Citizens Safe
The U.S. Department of Justice has provided more than $60 million to support efforts by Louisiana and the City of New Orleans to fight violent crime and rebuild the criminal
justice system.
- $30 million has been specifically
directed to aid New Orleans, which currently has one of the highest murder
rates per capita in the nation.
Attorney General
Gonzalez recently announced several additional DOJ assets to aid New Orleans, including:
- Additional FBI, DEA and
ATF agents, deputy U.S. Marshals, and Federal prosecutors
- New authority for the DEA
to enforce all Federal criminal laws, not just Federal drug laws
- A more aggressive
strategy to attempt to try more cases under Federal jurisdiction
- Additional technical
assistance and training for the New Orleans Police Department
- Up to $3 million to
support a new Family Violence Resource Center, a comprehensive victim service
and support center to assist victims of domestic violence and sexual assault in
New Orleans and the surrounding parishes
- Funds to reestablish the
NOPD crime lab and help local law enforcement with the processing of forensic
evidence
- Highly trained
specialists who can help strengthen local victim and witness assistance programs
The DOJ's
Hurricane Katrina Fraud Task Force continues to help deter, investigate and
prosecute disaster-related Federal crimes.
- The Task Force 's Command Center in Baton Rouge has received and referred more than 9,000 complaints to various
Federal agencies nationwide, and the Task Force continues to receive 150-200
calls a week related to disaster benefit fraud.
- As of January 2007, the
Task Force had indicted 533 individuals in 453 separate indictments in 35
judicial districts.
To further
assist the rebuilding of New Orleans' criminal justice infrastructure, Federal
Coordinator Powell is working closely with FEMA and city and state officials to
resolve all major outstanding applications for FEMA public assistance to
rebuild infrastructure.
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Improved Preparation for Future Disasters
President Bush took responsibility for the initial failed response to Hurricane Katrina and directed the Homeland Security Council to undertake a comprehensive review of the Federal response.
- The “Lessons Learned” report identified deficiencies in the Federal government's response and laid the groundwork for better preparation for and response to future natural disasters.
Dramatic improvements have been made at the Federal level to respond to a disaster.
- FEMA has strengthened its ability to respond, with streamlined coordination processes so that state and local governments know who their primary points of contact are before a disaster hits.
- FEMA has also improved its customer service capabilities to provide better support and assistance, protect against fraud and abuse and adjust to the changing needs of the community, including the ability to track disaster claims.
FEMA has provided Louisiana with an estimated $1.47 billion and Mississippi with an estimated $432 million in grants under the Hazard Mitigation Grant program to engage in preventive safety measures to protect life and property.
FEMA has issued Flood Recovery Guidance and Advisory Base Flood Elevations (ABFEs) for those areas of Louisiana and Mississippi where Katrina significantly altered the floodplain or current elevations were outdated.
- FEMA is working to assist affected communities and continues to provide guidance to assist local communities in their planning and rebuilding efforts to help ensure a reasonable level of protection against future flood damages. Most of the Gulf Coast communities in Mississippi and Louisiana have either adopted the ABFEs or another higher elevation standard than was previously in their local ordinance.
The National Oceanic Atmospheric Administration (NOAA) is strengthening its Gulf Coast forecasting and telecommunications capabilities.
- NOAA established 8 new Caribbean buoy stations, accelerated the development of the Hurricane Weather and Research Forecasting system and is expanding its satellite communication system network. The network will provide emergency telecommunications in the event of disrupted services.
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This page was last modified on March 6, 2007
