La. Governor: Feds Should Fund New Levees

Dec. 14, 2005 — -- The federal government is responsible for rebuilding the levees that surround New Orleans, the governor of Louisiana told a special U.S. House committee investigating the government's response to Hurricane Katrina.

Gov. Kathleen Blanco, a Democrat, told lawmakers that the federal government funds levees, bridges and dams across the country. "This is our No. 1 priority," she said. "As I've said before, if the levees had not failed, we wouldn't be having this hearing."

New Orleans Mayor Ray Nagin is scheduled to testify later today.

While the mayor and governor testify, Gulf Coast lawmakers were working to free up more money for recovery and reconstruction.

So far, Congress has approved more than $62 billion for hurricane rebuilding. But less than half that money, $24 billion, has been spent by the Federal Emergency Management Agency. Both the White House and members of Congress want to reallocate much of the $38 billion that hasn't been spent.

President Bush wants to take $17 billion dollars from FEMA and give it to other agencies. The point man for hurricane relief on Capitol Hill wants to double that amount. Sen. Thad Cochran, a Mississippi Republican whose state also was hammered by Katrina, hopes to reallocate $35 billion for use as community improvement grants, for the U.S. Army Corps of Engineers, and social programs.

"We need to spend the $62.3 billion Congress already appropriated on an emergency basis, approved by both houses and requested by the administration. Let's spend it -- let's not just let it sit there," Cochran said.

If Cochran is successful, this would leave FEMA with just $3 billion for its continuing efforts on the Gulf region. Yet, as a spokeswoman for FEMA noted to ABC News: "Three billion dollars is still a lot of money."

FEMA points out that rules and restrictions prevent it from spending money on some of the programs lawmakers are interested in funding.

Congress also is close to passing $7 billion in tax breaks and incentives for businesses on the Gulf Coast.