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Scalise Announces Long Awaited FEMA Loan Forgiveness Regulations

Press Release

Location: Washington, DC

Congressman Steve Scalise today announced that the U.S. Department of Homeland Security's Federal Emergency Management Agency has released draft loan forgiveness guidelines for Hurricane Katrina Community Disaster Loans (CDL).

"This is a very positive development on an issue we have been pushing FEMA to address for years," Scalise said. "Historically FEMA has forgiven 90 percent of loans they have issued since the CDL program began in the 1970's. This is the first formal step in the process to allow our local communities to apply for forgiveness of more than $600 million in loans issued by FEMA as a result of hurricane Katrina."

Local governments, fire departments, universities, and hospitals have been waiting for these regulations for more than two years. Most of them have continued to face large debts and continue to struggle with their recovery from Hurricane Katrina as a result.

In February, Congressmen Scalise and Cao, and Senator Vitter sent a letter to President Obama urging him to forgive these loans. Scalise also submitted a statement, in which he urged FEMA to issue these regulations, to the House Transportation and Infrastructure Committee, Subcommittee on Economic Development, Public Buildings, and Emergency Management hearing on post-Katrina disaster response and recovery.


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