$442 billion bill is $7 billion below Pentagon's budget request.
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House Majority Leader Tom DeLay said local first responders should remain in charge.
Roughly $18 million of the $240 million in hurricane-related contracts has gone to technology companies.
House Armed Services Committee might use its own in-depth review of U.S. armed forces and security threats as leverage to ask for additional funding.
Louisiana governor objects to new program, saying it will not help displaced citizens return to her state.
FEMA is still spending about $300 million per day, and funneling billions of dollars to other agencies.
Vice Adm. Thad Allen seeks to cut red tape, reassure local officials.
Lawmakers heaped praise on the National Weather Service during the hearing, saying the agency performed exceptionally well.