This CRS report summarizes federal disaster assistance funding legislation in the 109th Congress and presents some information on federal expenditures and obligations for disaster recovery activities

Chite, Ralph M.

Lake, Jennifer E.

UNT Digital Library

1 Other CRS analysts contributing to this report were Keith Bea (FEMA), Amy Belasco(Defense), and Nicole T. Carter (Army Corps of Engineers).Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22239Updated September 9, 2005Emergency Supplemental Appropriations forHurricane Katrina ReliefJennifer E. LakeDomestic Social Policy DivisionRalph M. ChiteResources, Science, and Industry DivisionSummaryIn response to the  widespread destruction brought to the Gulf Coast by HurricaneKatrina, the 109th Congress has completed action on two separate emergencysupplemental bills (P.L. 109-61/H.R. 3645 and P.L. 109-62/H.R. 3673),  which togetherprovide $62.3 billion for the immediate emergency response and recovery needs of theaffected region.  Both measures contain all funding requested by the Administration,including $10.5 billion in P.L. 109-61 and $51.8 billion in P.L. 109-62.  Of thecombined amount provided in the two measures, $60 billion is for the ongoing effortsof the Federal Emergency Management Agency (FEMA) to provide emergency food,shelter, and medical care to flooded regions; $1.9 billion is for the Department ofDefense to defray the cost of deploying military personnel to the region for rescue andrelief, and for other response costs; and $400 million is for the Army Corps of Engineersto restore navigation waterways and repair damaged flood control projects in affectedGulf states.  The Administration has stated that additional requests for supplementalfunding will be made in the weeks and months ahead, as loss and recovery estimatesbecome available.  This report will be updated as events warrant.Overview of Congressional Action1 Hurricane Katrina struck the Gulf Coast of the United States on August 29, 2005,causing widespread flooding and significant property and infrastructure damage toLouisiana, Mississippi, and Alabama.  In response, the 109th Congress has completedaction on two emergency supplemental measures (P.L. 109-61/H.R. 3645 and P.L. 109-62/H.R. 3673), which  together have provided $62.3 billion in  emergency supplementalfunding for immediate relief and response needs. (See Table 1.)  Both measures containfunding levels  as requested by the Administration in its two separate requests, and bothCRS-2were enacted within one day after the requests were submitted — P.L. 109-61 onSeptember 2 and P.L. 109-62 on September 8. The first supplemental (P.L. 109-61) provided $10 billion in FY2005 funding for theDepartment of Homeland Security’s Federal Emergency Management Agency (FEMA),and $0.5 billion for the Department of Defense (DOD) to support the costs of evacuation,emergency repairs, and deployment of personnel, and other costs resulting from theimmediate relief efforts.  The second supplemental (P.L. 109-62) added $50 billion to theFEMA funding and $1.4 billion to the DOD funding, and also provided $400 million tothe Army Corps of Engineers for restoring the Gulf state waterways and repairing theirflood control projects.P.L. 109-61 and P.L. 109-62 are expected to be followed by other emergencysupplemental measures in the weeks and months ahead. The President has indicated thathe will make additional requests for emergency funding as soon as reliable estimates ofhurricane damage can be completed and a more comprehensive assessment of requiredresources is available. Table 1. FY2005 Supplemental Appropriations in Response toHurricane Katrina($ in millions)Federal agency/account P.L. 109-61 P.L. 109-62 TotalDepartment of Defense (DoD) - MilitaryOperations and Maintenance, Defense-Wide 500 1,400 1,900Department of Defense (DoD) - CivilDepartment of the Army - Army Corps ofEngineers — 400 400Department of Homeland Security (DHS)Emergency Preparedness and Response (EPR)Disaster Relief Fund  10,000 50,000 60,000Total: 10,500 51,800 62,300Breakdown of Enacted Supplemental SpendingFEMA.  The two enacted emergency supplemental appropriations measures havedirected a total of $60 billion to FEMA to administer relief to the areas affected byHurricane Katrina – including $10 billion in P.L. 109-61 and $50 billion in P.L. 109-62.These relief and assistance funds are derived from the Disaster Relief Fund (DRF),administered by FEMA. DHS uses DRF funds to provide assistance to individuals,families, state and local governments, and certain nonprofit organizations, as authorizedby the Stafford Act.  Stafford Act aid is available after the President issues a declarationthat federal assistance is needed to supplement the resources of states and localities thatCRS-32 For more information on the Stafford Act and the DRF, see CRS Report RL33053, FederalStafford Act Disaster Assistance: Presidential Declarations, Eligible Activities, and Funding, byKeith Bea.3 For information on Hurricane Katrina, including the disaster declarations, see U.S. FederalEmergency Management Agency (FEMA), “Hurricane Katrina Information,” at [http://www.fema.gov/press/2005/resources_katrina.shtm], visited Sept. 2, 2005.4 For more information on the NDMS, see CRS Report RL31719 An Overview of the U.S. PublicHealth System in the Context of Emergency Preparedness, by Sara A. Lister.5 U.S. Congress, House Committee on Appropriations, “Chairman Lewis Introduces KatrinaRelief  Package,” Press  release dated Sept .  8 ,  2005,  accessed at[http://appropriations.house.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=513].are overwhelmed by particularly significant catastrophes.2  Federal assistance supportedby DRF money is used by states, localities, and certain nonprofit organizations to providemass care, restore damaged or destroyed facilities, clear debris, and aid individuals andfamilies with uninsured needs, among other activities.  In response to Hurricane Katrinathe President has issued major disaster declarations for Louisiana, Mississippi, Alabama,and Florida.3Of the $50 billion provided to FEMA in P.L. 109-62, up to $100 million may betransferred to the National Disaster Medical System (NDMS) for medical and relatedrelief teams.4   P.L. 109-62 also contains a provision allocating $15 million for theDepartment of Homeland Security’s Inspector General to carry out audits andinvestigations related to Hurricane Katrina response and recovery activities.  Beyond thesetwo allocations, neither of the two supplementals contains specifics on how the FEMAfunding is to be used. The second supplemental (P.L. 109-62) does require the Secretaryof DHS to submit a weekly report to the Appropriations Committees detailing theobligation and allocation of the $50 billion contained in the act, with the first report dueto Congress no later than September 15, 2005.  A comparable provision was not includedin the first enacted supplemental.A House Appropriations Committee press release indicates that the $50 billionprovided by P.L. 109-62 is expected to be spent for the following:! $23.2 billion for Individual Housing Assistance;! $11 billion for Mission Assignments (tasks issued by FEMA to agenciesthat are reimbursable from the Disaster Relief Fund (DRF), including$3.0 billion for the Army Corps of Engineers;$2.5 billion for Departmentof Defense; and $5.5 billion for other agencies;! $7.65 billion for Public Assistance;! $1.6 billion for an additional 100,000 trailers for temporary housing;! $4.6 billion for FEMA Operations;! $1.3 billion for other needs (Disaster Unemployment Assistance, damageinspections, counseling, legal and other expenses);! $0.65 billion for mitigation activities.5Funding also has been appropriated to the DRF during the annual appropriationsprocess to provide an available source of funding for disaster relief expenditures.  ForFY2005, Congress appropriated $8.5 billion to the DRF.  This amount included $6.5CRS-46 For more information, see CRS Report RL32581, Supplemental Appropriations for the 2004Hurricanes and Other Disasters, by Keith Bea and Ralph M. Chite.7 For more information, see CRS Report RL32863, Homeland Security Department: FY2006Appropriations, coordinated by Jennifer E. Lake, and Blas Nuñez-Neto, pp. 49-53.8 Hurricane Katrina DOD fact sheet, September, 2005 and Congress Daily, “Appropriations:Bush Submits $52B  Supplemental Request,” September 8, 2005.9  The Base Closure Commission’s final report was submitted to the President on September 8,2005, which included a recommendation to realign (rather than close) Naval Support Activity,New Orleans, and to close the other two facilities. billion in supplemental disaster relief funding (P.L. 108-324) after Hurricanes Charley,Frances, Ivan, and Jeanne struck Florida and other states in the U.S. in the summer of2004.6  For the  FY2006 Department of Homeland Security appropriation, the Presidentrequested and both the House and Senate recommended, comparable funding ofapproximately $2 billion for the DRF.7  (Final action on the regular FY2006 DHSappropriations bill (H.R. 2360) is pending.) Defense.  Between the two enacted supplementals, the Department of  Defense(DOD) has received $1.9 billion – $500 million in P.L.109-61, and an additional $1.4billion in P.L. 109-62.  As projected by DOD, $1.3 billion of the total will be used foremergency evacuation of military and civilian personnel, debris removal, and emergencyrepairs at over 20 defense installations affected by the hurricane, and $570 million willpay the cost of mobilizing and supporting some 44,000 National Guard personnel.  Thesefunds do not include FEMA’s reimbursement of DOD – some $2.5 billion thus far – forits rescue operations.8Damage at defense installations ranges from minor damage to fences and roofs towholesale damage to facilities in New Orleans and Mississippi. Three of the damagedfacilities — the Naval Support Activity in New Orleans,  the Mississippi ArmyAmmunition Plant, and the Naval Station in Pascagoula, Mississippi  — wererecommended for closure by the Department of Defense in the ongoing Base Realignmentand Closure round.9The second supplemental (P.L. 109-62) also permits DOD to transfer up to $6million to cover the costs for residents who were evacuated from the U.S. Naval Homein Mississippi, a retirement home for certain retired military personnel, to the U.S.Soldiers’ and Airmen’s Home in Washington, D.C.        All supplemental DOD funds are appropriated to Operation and Maintenance,Defense-wide, and are set up as a transfer account whereby DOD can move monies toother accounts depending on the type of expense (e.g., to pay military personnel costs,operating costs, procurement, family housing, and Defense health).  Unneeded funds inany account may be returned to the transfer account, and then transferred elsewhere.Both supplementals contained the amount requested by the Administration.However, language was added by appropriators to both measures requiring DOD to notifythe congressional defense committees (Armed Services and Appropriations) of anytransfer of funds within five days of a transfer. This reporting requirement will allowCRS-510 The U.S. Army Corps of Engineers (Department of Defense) has military and civilianresponsibilities.   Under its civil works program at the direction of Congress, the Corps plans,constructs, and operates, and maintains a wide range of water resources facilities. 11  The Corps also is performing emergency work under the National Response Plan.  TheStafford Act (42 U.S.C. 5170b) authorizes FEMA to direct DOD to use its resources to provideassistance in the event of a major disaster or emergency declaration by the President. Under theNational Response Plan, DOD is responsible for emergency support for public works andengineering.  The Corps is the designated operating agent for DOD in executing these activities.The Corps’ funding for these activities is provided through mission assignments made by FEMAand paid for from the Disaster Relief Fund.  For additional information, see [http://www.usace.army.mil/inet/functions/cw/cecwo/readness.htm], visited Sept, 8, 2005.Congress to distinguish between funds used for hurricane-related expenses from thoseused for military operations and regular peacetime activities. Army Corps of Engineers (Civil Works).   The second supplemental (P.L. 109-62) contained $400 million for  the civil works program of the U.S. Army Corps ofEngineers, as requested by the President.10  The funds are divided into two accounts —$200 million to the agency’s Operation and Maintenance account to repair storm damageat Corps projects in affected Gulf states, and $200 million to the Flood Control andCoastal Emergencies account to continue repairs of damaged flood control and hurricaneshore protection projects in affected Gulf states.11  The President requested a similardivision of funds between the two accounts.  Although the language in the request and theenacted measure differ in how they describe the activities to be funded, the scope ofactivities in the bill appears similar to the scope requested.   The Corps is required toreport weekly to the Committees on Appropriation on the allocation and obligation ofthese funds, beginning September 15, 2005. Although emergency supplemental appropriations for the Corps have not been thesubject of controversy, the funding history of Corps levee and floodwall projects for NewOrleans is receiving attention.  For a discussion of the appropriations history for NewOrleans Corps projects, see CRS Report RS22238, New Orleans Levees and Floodwalls:Hurricane Damage Protection.

Emergency Supplemental Appropriations for Hurricane Katrina Relief

1 Other CRS analysts contributing to this report were Keith Bea (FEMA), Amy Belasco(Defense), and Nicole T. Carter (Army Corps of Engineers).Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22239Updated November 1, 2005Emergency Supplemental Appropriations forHurricane Katrina ReliefJennifer E. LakeDomestic Social Policy DivisionRalph M. ChiteResources, Science, and Industry DivisionSummaryIn response to the  widespread destruction brought to the Gulf Coast by HurricaneKatrina, the 109th Congress completed action on two separate emergency supplementalbills (P.L. 109-61/H.R. 3645 and P.L. 109-62/H.R. 3673), which together provide anadditional $62.3 billion for emergency response and recovery needs.  Both measuresmatch the funding requested by the Administration — $10.5 billion in P.L. 109-61 and$51.8 billion in P.L. 109-62.  Of the combined amount provided in the two measures,$60 billion enables the Federal Emergency Management Agency (FEMA) to provideemergency food, shelter, and medical care to areas stricken by the hurricane and otherdisasters.  In addition, $1.9 billion was appropriated to the Department of Defense to payfor damage to its facilities and personnel evacuation costs, and $400 million to the ArmyCorps for damaged flood control projects.  On October 28, 2005, the Administrationrequested the reallocation of $17.1 billion primarily to pay for restoring damaged federalfacilities, and submitted a rescission request of $2.3 billion from 17 accounts to pay forsome of the disaster costs.  This report will be updated as events warrant.Overview of Congressional Action1 Hurricane Katrina struck the Gulf Coast of the United States on August 29, 2005,causing widespread flooding and significant property and infrastructure damage toLouisiana, Mississippi, and Alabama.  In response, the 109th Congress completed actionon two emergency supplemental measures (P.L. 109-61/H.R. 3645 and P.L. 109-62/H.R.3673), which  together have provided $62.3 billion in  emergency supplemental fundingfor immediate relief and response needs. (See Table 1.)  Both measures contain fundinglevels as requested by the Administration in two separate submissions, and both wereCRS-2enacted within one day after the requests were received — P.L. 109-61 on September 2and P.L. 109-62 on September 8. Table 1. FY2005 Supplemental Appropriations in Response toHurricane Katrina($ in billions)Federal Agency/Activity1st Supp.P.L. 109-61 a2nd Supp.P.L. 109-62TotalappropriationFEMA 10.0 50.0 60.0     Manufactured Housing 3.3 1.6 4.9     Supplies/Materials 0.4 1.9 2.3     Temporary Financial Assistance 0.8 23.2 24.0     FEMA Logistics 0.5 2.6 3.1     Infrastructure Repair 0.1 7.7 7.8     Damage Inspections 0.1 0.3 0.4     Urban Search and Rescue 0.1 0.1 0.2     Army Corps of Engineers b 2.4 3.0 5.4     Department of Defense b 2.1 2.5 4.6     Other 1.0 7.2 8.2Army Corps of Engineers  — 0.4 0.4Department of Defense 0.5 1.4 1.9Total: 10.5 51.8 62.3Source: CRS analysis of Senate Budget Committee, Budget Bulletin, 109th Congress, 1st Session: No. 5,Sept. 12, 2005.Note: Amounts may not add to totals due to rounding.a.  The breakdown of FEMA spending, includes $681 million previously appropriated to FEMA.  Hence,the sum of the FEMA components is $681 million greater than the $60.0 billion provided by the twosupplementals.b.  Reflects funds appropriated to FEMA and then transferred as reimbursement for services provided inresponse to Hurricane Katrina.The first supplemental (P.L. 109-61) provided $10 billion in FY2005 funding for theDepartment of Homeland Security’s Federal Emergency Management Agency (FEMA),and $0.5 billion for the Department of Defense (DOD) to support the costs of evacuation,emergency repairs, and deployment of personnel, and other costs resulting from theimmediate relief efforts.  The second supplemental (P.L. 109-62) added $50 billion to theFEMA funding and $1.4 billion to the DOD funding, and also provided $400 million tothe Army Corps of Engineers for restoring the Gulf state waterways and repairing theirflood control projects.CRS-32 For more information on the Stafford Act and the DRF, see CRS Report RL33053, FederalStafford Act Disaster Assistance: Presidential Declarations, Eligible Activities, and Funding, byKeith Bea.3 For information on Hurricane Katrina, including the disaster declarations, see U.S. FederalEmergency Management Agency (FEMA), “Hurricane Katrina Information,” at [http://www.fema.gov/press/2005/resources_katrina.shtm], visited Sept. 2, 2005.4 For more information on the NDMS, see CRS Report RL31719 An Overview of the U.S. PublicHealth System in the Context of Emergency Preparedness, by Sara A. Lister.5 For more information, see CRS Report RL32581, Supplemental Appropriations for the 2004Hurricanes and Other Disasters, by Keith Bea and Ralph M. Chite.6 For more information, see CRS Report RL32863, Homeland Security Department: FY2006Appropriations, coordinated by Jennifer E. Lake, and Blas Nuñez-Neto, pp. 49-53.Breakdown of Enacted Supplemental SpendingFEMA.  The two enacted emergency supplemental appropriations measuresdirected a total of $60 billion to the Disaster Relief Fund (DRF) administered by FEMA.DRF funds provide assistance to individuals, families, state and local governments, andcertain nonprofit organizations, as authorized by the Stafford Act.  Stafford Act aid isavailable after the President issues a declaration that federal assistance is needed tosupplement the resources of states and localities overwhelmed by particularly significantcatastrophes.2  Federal assistance supported by DRF money is used by states, localities,and certain nonprofit organizations to provide mass care, restore damaged or destroyedfacilities, clear debris, and aid individuals and families with uninsured needs, among otheractivities.  In response to Hurricane Katrina the President has issued major disasterdeclarations for Louisiana, Mississippi, Alabama, and Florida.3Of the $50 billion provided to FEMA in P.L. 109-62, up to $100 million may betransferred to the National Disaster Medical System (NDMS) for medical and relatedrelief teams.4   P.L. 109-62 also contains a provision allocating $15 million for theDepartment of Homeland Security’s Inspector General to carry out audits andinvestigations related to Hurricane Katrina response and recovery activities.  Beyond thesetwo allocations, neither of the two supplementals contains specifics on how the FEMAfunding is to be used. The second supplemental (P.L. 109-62) does require the Secretaryof DHS to submit a weekly report to the Appropriations Committees detailing theobligation and allocation of the $50 billion contained in the act, with the first report dueto Congress no later than September 15, 2005.  A comparable provision was not includedin the first enacted supplemental. In addition to supplemental appropriations, funds are also appropriated to the DRFduring the annual appropriations process.  For example, for FY2005, Congressappropriated $2.0 billion to the DRF during the annual appropriation process and laterprovided $6.5 billion in supplemental disaster relief funding (P.L. 108-324) afterHurricanes Charley, Frances, Ivan, and Jeanne struck Florida and other states in the U.S.in the summer of 2004.5  For the  FY2006 Department of Homeland Securityappropriation, the President requested and both the House and Senate recommended,comparable funding of approximately $2 billion for the DRF.6CRS-47  The Base Closure Commission’s final report was submitted to the President on September 8,2005, which included a recommendation to realign (rather than close) Naval Support Activity,New Orleans, and to close the other two facilities. 8 U.S. Executive Office of the President, Office of Management and Budget, “Estimate No.13,”at[http://www.whitehouse.gov/omb/budget/amendments/reallocation_package_10_28_05.pdf],visited Nov. 1, 2005.Defense Funds Appropriated.  Between the two enacted supplementals, theDepartment of  Defense (DOD) has received $1.9 billion — $500 million in P.L.109-61,and an additional $1.4 billion in P.L. 109-62 (see Table 1).  As projected by DOD, $1.3billion of the total will be used for emergency evacuation of military and civilianpersonnel, debris removal, and emergency repairs at over 20 defense installations affectedby the hurricane, and $570 million to pay the cost of mobilizing and supporting some44,000 National Guard personnel.  These funds do not include $4.6 billion in projectedFEMA reimbursements to DOD (for “mission assignments”) for its rescue operations.Damage at defense installations ranges from minor damage to fences and roofs towholesale damage to Keesler Air Force Base in Mississippi. Three of the damagedfacilities — the Naval Support Activity in New Orleans,  the Mississippi ArmyAmmunition Plant, and the Naval Station in Pascagoula, Mississippi — wererecommended for closure by the Department of Defense in the ongoing Base Realignmentand Closure round.7 All supplemental DOD funds appropriated thus far are to Operation andMaintenance, Defense-wide, and are set up as a transfer account whereby DOD can movemonies to other accounts depending on the type of expense (e.g., to pay military personnelcosts, operating costs, procurement, family housing, and Defense health).  Unneededfunds in any account may be returned to the transfer account, and then transferredelsewhere.   Congress approved the amounts requested by the Administration but addedlanguage requiring DOD to notify the congressional defense committees (Armed Servicesand Appropriations) of any transfer of funds within five days of a transfer.Defense Re-allocation Request.  The Administration’s October 28, 2005 re-allocation request would transfer $6.5 billion of the funds previously appropriated toFEMA to the Department of Defense primarily to repair and replace defense facilities andNavy ships under construction.  The request proposes:! $2.1 billion to repair defense facilities;! $2.3 billion to replace equipment, including $2.0 billion for Navy shipsunder construction at Ingalls shipyard in Mississippi and the Marine andLand Facility in New Orleans;! $1.4 billion to repair and replace family housing and other facilities;! $553 million for military personnel costs; and! $66 million for Research, Development, Test & Evaluation (RDTE) toreplace testing equipment and $52 million for working capital and trustfunds.8CRS-59 The U.S. Army Corps of Engineers (Department of Defense) has military and civilianresponsibilities.   Under its civil works program at the direction of Congress, the Corps plans,constructs, and operates, and maintains a wide range of water resources facilities. 10  The Stafford Act (42 U.S.C. 5170b) authorizes FEMA to direct DOD to use its resources toprovide assistance in the event of a major disaster or emergency declaration by the President.Under the National Response Plan, DOD is responsible for emergency support for public worksand engineering.  The Corps is the designated operating agent for DOD in executing theseactivities. The Corps’ funding for these activities is provided through mission assignments madeby FEMA and paid for from the Disaster Relief Fund.  For additional information, see[http://www.usace.army.mil/inet/functions/cw/cecwo/readness.htm], visited Nov. 1, 2005.Military personnel and operation and maintenance funds would be available for oneyear, RDTE and non-ship procurement funds for two years, and shipbuilding and militaryconstruction funds for five years. The Administration also requested authority to transfer $750 million of the fundsrequested for the Department of Defense, as well as general provisions allowing militarypersonnel deployed for Katrina to accumulate up to 120 days of leave, and permitting theSecretary of Defense to temporarily increase basic housing allowances by up to 20% forthose in the disaster area based on certifications from service member.Army Corps of Engineers (Civil Works).  As requested by the President, thesecond supplemental (P.L. 109-62) contained an appropriation of $400 million directlyto the U.S. Army Corps of Engineers for its civil works program.9  Not included in thisamount is an additional $5.4 billion the Corps may receive by transfer from FEMA (seeTable 1) for emergency support for public works and engineering, under the NationalResponse Plan.10Of the $400 million appropriated directly to the Corps, $200 million was for theagency’s Operation and Maintenance account to repair storm damage at Corps projectsin affected Gulf states, and $200 million was for its Flood Control and CoastalEmergencies account to continue repairs of damaged flood control and hurricane shoreprotection projects in affected Gulf states.  The Corps reports weekly to the Committeeson Appropriation on the allocation and obligation of these funds; as of October 28, 2005,the Corps had allocated  all but $5 million of the $400 million. The estimated $5.4 billion transfer from FEMA to the Corps for public works andengineering support, includes technical assistance, engineering, and constructionmanagement as well as emergency contracting, power, and repair of wastewater and solidwaste facilities.  The Corps is also tasked with providing assistance in the monitoring andstabilization of damaged structures and the demolition of structures designated asimmediate hazards to public health and safety.  October 28 Budget Amendments.  The rate of expenditure from the DRF variesaccording to the needs that result from a catastrophe and the type of assistance authorizedto be provided.  Aid to victims for immediate concerns (housing, purchase of clothing,uninsured essential needs) is provided quickly.  According to the Department ofHomeland Security, over 1 million households have received more than $3.5 billion inCRS-611 “Emergencies & Disasters, Hurricane Katrina: What the Government is Doing,” at[http://www.dhs.gov/interweb/assetlibrary/katrina.htm], visited Nov. 1, 2005.12 U.S. Executive Office of the President, Office of Management and Budget, “Estimate No.13,”at[http://www.whitehouse.gov/omb/budget/amendments/reallocation_package_10_28_05.pdf],visited Nov. 1, 2005.13 U.S. Executive Office of the President, Office of Management and Budget, “Estimate No.14,”at[http://www.whitehouse.gov/omb/budget/amendments/rescission_package_10_28_05.pdf],visited Nov. 1, 2005.14 The departments that would be affected by the rescission include Agriculture, Commerce,Defense, Education, Energy, Health and Human Services, Homeland Security, Housing andUrban Development, Interior, Labor, State, and Treasury.  The five accounts from which fundswould be rescinded include those administered by the Environmental Protection Agency, theBroadcasting Board of Governors, the Corporation for Public Broadcasting, the FederalCommunications Commission, and International Assistance Programs.disaster assistance during the first three weeks of recovery.11  On the other hand, it is notunusual for the drawdown of funds from the DRF to take years for the reconstruction ofcommunities.  The devastation caused by Hurricane Katrina, and the need to consider theredesign of many communities, including New Orleans, will likely result in months if notyears of plans, reconfigurations, and contracting negotiations.The President submitted a reallocation request to Congress on October 28, 2005, “toundertake response and recovery activities in the affected regions that cannot be fundedby FEMA under the Stafford Act,” primarily for repair and replacement of federalfacilities.12  The reallocation decision may have been based upon the recognition of  thehistorically slow drawdown rate in the DRF for the repair and replacement of communityinfrastructure facilities.  The Administration contends that after the reallocation is made,“remaining amounts available in the DRF are expected to be sufficient through May of2006 to proceed uninterrupted with ongoing disaster-response efforts underway in theaffected regions, state and local infrastructure rebuilding requirements, as well as potentialcosts arising from Hurricane Wilma.”  Funds would be reallocated to accountsadministered by 11 departments (Agriculture, Commerce, Defense, Health and HumanServices, Homeland Security, Housing and Urban Development, Interior, Justice, Labor,Transportation, and Veterans Affairs) and seven other accounts (Environmental ProtectionAgency, the Corps of Engineers, General Services Administration, National Aeronauticsand Space Administration, Small Business Administration, Armed Forces RetirementHome, and the Judicial Branch). The submission also includes language providingauthority for any federal agency to transfer funding to meet emergency needs resultingfrom Hurricane Katrina, pending notification to Congress.In an effort to address concerns about the cost of the federal response to the disasters,the President also submitted that same day a budget amendment that would rescind “$2.3billion from lower-priority federal programs and excess funds.”13  The rescissions, ifapproved by Congress, would affect 12 departments, most of which would receivereallocated funds, and five other accounts.14

1 Other CRS analysts contributing to this report were Keith Bea (FEMA) and Amy Belasco(Defense).Congressional Research Service ˜ The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22239September 7, 2005Emergency Supplemental Appropriations forHurricane Katrina ReliefJennifer E. LakeDomestic Social Policy DivisionRalph M. ChiteResources, Science, and Industry DivisionSummaryIn response to the  widespread destruction brought to the Gulf Coast by HurricaneKatrina, the 109th Congress completed action on a $10.5 billion emergency supplementalbill (P.L. 109-61, H.R. 3645), as requested by the Administration.  The Presidentsubmitted the request on September 1, 2005.  Both chambers approved it within 24hours, and it was signed into law on September 2, 2005.  Of the amount provided, $10billion is for the ongoing efforts of the Federal Emergency Management Agency(FEMA) to provide emergency food, shelter, and medical care to flooded regions; $500million is for the Department of Defense to defray the cost of deploying militarypersonnel to the region for rescue and relief, and for other response costs.  TheAdministration has stated that additional requests for supplemental funding will be madein the weeks ahead, as loss and recovery estimates become available.  This report willbe updated as events warrant.Overview1 Hurricane Katrina struck the Gulf Coast of the United States on August 29, 2005,causing widespread flooding and significant property and infrastructure damage toLouisiana, Mississippi, and Alabama.  In response, the 109th Congress completed actionon an emergency supplemental appropriation bill (P.L. 109-61, H.R. 3645) that provides$10.5 billion in FY2005 funding to areas stricken by the disaster. The President submittedthe request for the emergency supplemental on September 1, 2005.  Both the Senate andthe House quickly took action on the measure.  The Senate passed the request byunanimous consent the evening of September 1, 2005.  The House approved the bill byvoice vote on September 2, 2005, and the President signed it into law the same day.  P.L.109-61 provides $10 billion in FY2005 funding for the Department of HomelandSecurity’s Federal Emergency Management Agency (FEMA), and $0.5 billion for theCRS-22 The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq.3 For more information on the Stafford Act and the DRF, see CRS Report RL33053, FederalStafford Act Disaster Assistance: Presidential Declarations, Eligible Activities, and Funding, byKeith Bea.4 For information on Hurricane Katrina, including the disaster declarations, see U.S. FederalEmergency Management Agency (FEMA), “Hurricane Katrina Information,” at [http://www.fema.gov/press/2005/resources_katrina.shtm], visited Sept. 2, 2005.5 For more information, see CRS Report RL32581, Supplemental Appropriations for the 2004Hurricanes and Other Disasters, by Keith Bea and Ralph M. Chite.Department of Defense (DOD) to support the costs of evacuation, emergency repairs, anddeployment of personnel, and other costs resulting from the immediate relief efforts.P.L. 109-61 is anticipated to be the first of several emergency supplementalmeasures, with the next request likely to be submitted within a few days.  The Presidenthas indicated that he will make additional requests for emergency funding as soon asreliable estimates of hurricane damage can be completed and a more comprehensiveassessment of required resources is available. Breakdown of Enacted Supplemental Spending FEMA.  Of the $10.5 billion in supplemental funding provided by P.L. 109-61, $10billion is directed to FEMA to administer relief to the areas affected by the hurricane.These funds are derived from the Disaster Relief Fund (DRF), administered by FEMA.The Homeland Security Act of 2002 (P.L. 107-296) transferred the authorities andfunctions previously carried out by FEMA to DHS and charged the Secretary ofHomeland Security with the responsibility for administering these activities. TheEmergency Preparedness and Response Directorate (EPR) of DHS, which includesFEMA, has primary responsibility for activities authorized by the Stafford Act.2DHS uses DRF funds to provide assistance to individuals, families, state and localgovernments, and certain nonprofit organizations, as authorized by the Stafford Act.Stafford Act aid is available after the President issues a declaration that federal assistanceis needed to supplement the resources of states and localities that are overwhelmed byparticularly significant catastrophes.3  Federal assistance supported by DRF money is usedby states, localities, and certain nonprofit organizations to provide mass care, restoredamaged or destroyed facilities, clear debris, and aid individuals and families withuninsured needs, among other activities.  In response to Hurricane Katrina the Presidenthas issued major disaster declarations for Louisiana, Mississippi, Alabama, and Florida.4Amounts are appropriated to the DRF during the annual appropriations process toprovide an available source of funding for disaster relief expenditures.  For FY2005,Congress appropriated $8.5 billion to the DRF.  This amount included $6.5 billion insupplemental disaster relief funding (P.L. 108-324) after Hurricanes Charley, Frances,Ivan, and Jeanne struck Florida and other states in the U.S. in the summer of 2004.5  Forthe  FY2006 Department of Homeland Security appropriation, the President requested andboth the House and Senate recommended, comparable funding of approximately $2CRS-36 For more information, see CRS Report RL32863, Homeland Security Department: FY2006Appropriations, coordinated by Jennifer E. Lake, and Blas Nuñez-Neto, pp. 49-53.7 Final recommendations to the President from the base closure commission are due onSeptember 8, 2005.billion for the DRF.6  (Final action on the FY2006 DHS appropriations bill (H.R. 2360)is pending.) Table 1. FY2005 Supplemental Appropriations in Response toHurricane Katrina, Administration’s Initial Request, and P.L. 109-61 ($ in millions)Federal agency/accountAdministrationRequestProvided by P.L. 109-61/H.R. 3645Department of Defense (DoD)Operations and Maintenance, Defense-Wide 500 500Department of Homeland Security (DHS)Emergency Preparedness and Response (EPR)Disaster Relief Fund  10,000 10,000Total: 10,500 10,500Source:  President’s Request for Emergency Supplemental Funding in letter to the Speaker of the Housedated September 1, 2005; and H.R. 3645.See [http://www.whitehouse.gov/omb/budget/amendments/supplemental_9_1_05.pdf].Defense.  P.L. 109-61 also provides $500 million to the Department of Defense(DOD) for emergency evacuation of military and civilian personnel, debris removal, andemergency repairs at over 20 defense installations affected by the hurricane, and forDOD’s operational costs in evacuating, rescuing, and providing relief supplies to civiliansin New Orleans and elsewhere.  Damage at defense installations ranges from minordamage to fences and roofs to wholesale damage to facilities in New Orleans andMississippi.  Two of the damaged facilities — the Naval Supply Activity in New Orleansand the Army ammunition plant in Mississippi — are recommended for closure by theDepartment of Defense in the ongoing Base Realignment and Closure round.7 The DOD funds are appropriated to Operation and Maintenance, DOD-wide withspecial transfer authority allowing DOD to move the monies to other accounts dependingon the type of expense (e.g., to pay military personnel costs, operating costs, procurement,family housing, and Defense Health).  The congressional defense committees are to benotified in writing of transfers within five days.  Additional requests are anticipated formilitary construction if new buildings need to be constructed as well as other expenses.These funds do not pay for the cost of activating National Guard forces, which arecurrently being borne by the states.The DOD funds are appropriated to Operation and Maintenance, DOD-wide withspecial transfer authority allowing DoD to move the monies to other accounts dependingon the type of expense (e.g., to pay military personnel costs, operating costs, procurement,family housing, and Defense Health).  The congressional defense committees are to benotified in writing of transfers within five days.  Additional requests are anticipated formilitary construction if new buildings need to be constructed as well as other expenses.

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Emergency Supplemental Appropriations for Hurricane Katrina Relief

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