FEMA spending slows, agency cites delays in billings

The Federal Emergency Management Agency's rate of spending on the Hurricane Katrina relief effort has slowed considerably -- to slightly more than $300 million per day -- leaving FEMA with about $46.3 billion unallocated Wednesday from the $60 billion already appropriated, according to the latest weekly expenditure report submitted to Congress.

That is just $2.2 billion spent since last week's report. But FEMA is likely to face considerable strain in the near future as a result of Hurricane Rita, and House appropriators have given the agency a reprieve from testifying before the House Homeland Security Appropriations Subcommittee next week.

According to the expenditure report, the largest single expense--$1.43 billion thus far--continues to be reimbursements for housing, medical, transportation and other costs for which FEMA is handing out grants capped at $26,200 per individual or household.

Most of the money, $8.6 billion, is still being directed to Louisiana, with $5.3 billion to Mississippi and $1.7 billion to Alabama. The agency is spending about $239 million on evacuation costs and reimbursements to states that have taken in refugees, with more than half going to Texas.

FEMA also has disbursed large amounts of cash to other agencies involved in the relief effort, with $3 billion going to the Army Corps of Engineers and $2.1 billion to the Pentagon, for example.

In an accompanying letter to appropriators, Homeland Security Undersecretary for Management Janet Hale wrote that while some funds might appear to be unspent, in some cases that is just a result of the billing process between FEMA and other agencies involved in the relief effort, not because the work is not being done.

"FEMA will continue to refine the format to ensure the presentation meets the committee's information needs," she wrote.

Also, out of $400 million appropriated for the Army Corps of Engineers directly, the agency has allocated about $311 million, and the Corps said in its weekly report that most of the remainder would be spent within the next week or so. Thus far, most of the funds have gone to flood control in Louisiana, including emergency repairs to the Lake Pontchartrain and vicinity flood protection system, along with the 17th Street and London canals, the report said.

Meanwhile, budget watchdog groups are continuing the drumbeat for more accountability in federal spending in the wake of Katrina. The Committee for a Responsible Federal Budget Friday said Congress should adopt a new budget resolution to account for "overruns" in not just the disaster aid accounts but also for war-related spending, veterans' healthcare, energy and transportation the group said exceeds allotted funding levels in the budget.

"Next year's budget has already been derailed and the new fiscal year hasn't even begun," said Executive Director Maya MacGuineas.