Issue Position: Gulf Coast Recovery

Issue Position

Issue Position: Gulf Coast Recovery

A New Direction for the Gulf Coast

To mark the three-year anniversary of Hurricanes Katrina and Rita, Speaker Nancy Pelosi and House Democrats recently took part in a congressional delegation to the Gulf Coast region, focusing on housing, health care, education, infrastructure, and public safety.

Democrats are delivering for the Gulf Coast region--including a recently-appropriated $5.8 billion for levees and coastal restoration, $73 million for public housing in New Orleans, $3 billion for the Road Home program, increased small business disaster loan assistance, and funding for higher education.

House Democrats have led three Congressional delegations to the Gulf Coast in the years following Hurricanes Katrina and Rita. In 2006, when the region was still reeling from the federal government's incompetence and congressional inaction, House Democrats dispatched their first delegation to the Gulf Coast to assess the devastation and determine the needs. That trip was an important first step in an unwavering partnership House Democrats have established with the region--it informed the legislation that eventually became law in the first seven months of a new Democratic majority in the 110th Congress.

Last year, House Democrats provided effective results during their visit to the region--a waiver of the local matching requirement under the Stafford Act, saving the region $1.9 billion and triggering work on 20,000 stalled construction projects; $6.4 billion in assistance for levees, coastal restoration, teacher recruitment, school maintenance, health care, housing, small business, and law enforcement; and oversight from more than 30 congressional hearings on recovery.

Congress is making dramatic progress in assisting residents of Louisiana and Mississippi in their recovery from the worst natural disaster in American history. Democratic leadership of the 110th Congress, which initiated much of the recovery aid now headed for the Gulf Coast, has led to a Partnership for the Future, to help ensure federal aid continues to flow to the region.

Hurricane Katrina resulted in more than 1,800 deaths, nearly 500,000 homes in Louisiana and Mississippi being destroyed or made uninhabitable, and about 1.5 million people being at least temporarily displaced from their homes. From housing to health care to education, the region remains in a state of crisis.

Delegation to the Gulf CoastUnfortunately, this natural disaster was made worse by a manmade disaster. The Bush Administration's immediate disaster response to Katrina was marked by chaos, confusion, and incompetence. In addition, Katrina recovery and rebuilding contracts were marked by epic waste, fraud and abuse - with the American taxpayer paying the bill. Indeed, a disaster expert called FEMA's Katrina housing effort "the largest disaster-response failure in the history of the country" - with the housing effort alone resulting in over $1 billion in waste and misspent funds.

Furthermore, over the next year and a half, the Bush Administration and the GOP-led Congress failed to meet such critical needs as adequate levee protection, rebuilding funds, health care facilities, and resources for re-opening schools and universities.

In 2006, the Democratic-led Congress acted immediately to meet the most critical needs of the region. The $6.4 billion Gulf Coast Recovery package was signed by the President in May, 2007, and includes:

* Waiving the requirement that struggling local communities pay 10% of the costs of FEMA disaster recovery projects, thereby saving the Gulf Coast region $1.9 billion and allowing work on 20,000 stalled projects to begin;
* $1.3 billion to repair and complete key levee protection and flood control projects in Louisiana and Mississippi;
* $1.35 billion in Community Disaster Loan forgiveness;
* $4.3 billion in FEMA disaster recovery grants, $1 billion over the President's request;
* Extending access to $550 million in Social Services Block Grant funding to meet the health care needs of the Gulf Coast region;
* $30 million to recruit K-12 teachers and administrators and $30 million to recruit higher education faculty; and
* Housing tax relief including extension of low-income housing tax credits.

Over the last three years, many resilient, hard-working Americans have returned to the Gulf Coast to attempt to rebuild their lives. This Congress will work with these committed individuals until the Gulf Coast is once again a thriving, vital part of the American family.

Gulf Coast Legislation Passed by the House:

Gulf Coast Housing Recovery Act
Speeds the rebuilding of homes and affordable rental units, including by freeing up $1.2 billion for the Louisiana Road Home program; helps preserve the supply of affordable rental housing; helps families by extending the Disaster Voucher Program through January 1, 2008.

RECOVER Act
Includes numerous provisions to overhaul the Small Business Administration's disaster assistance program in response to SBA's disastrous performance after the 2005 Gulf Coast hurricanes.

Disadvantaged Business Disaster Eligibility Act
Ensures that, for each small business that participates in the SBA 8(a) minority entrepreneur program and was affected by Hurricanes Katrina or Rita, the period in which it can participate in the 8(a) program is extended by 18 months.

Accountability in Contracting Act
In response to the massive waste, fraud and abuse in Katrina-related contracts, requires federal agencies to minimize the use of "no-bid" contracts and promote the use of cost-effective fixed-price contracts.

Federal Housing Finance Reform/Affordable Housing Fund
Creates a non-taxpayer financed Affordable Housing Fund, which during the first five years will go towards the construction of affordable housing in areas still recovering from Hurricane Katrina.

Source