Michael Brown initially blames state and local officials for Hurricane Katrina problems, but concedes under questioning that the federal government also failed.
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Inspector general backed merger of Immigration and Customs Enforcement and Customs and Border Protection bureaus, but Homeland Security secretary rejected recommendation.
Some say flood of funding, lax oversight and quick contracting creates 'perfect storm' for waste.
$442 billion bill is $7 billion below Pentagon's budget request.
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.