Gulf Coast Recovery
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To mark the three-year anniversary of Hurricanes Katrina and Rita, Speaker Nancy Pelosi and House Democrats took part in a congressional delegation to the Gulf Coast region, focusing on housing, health care, education, infrastructure, and public safety.
In February, President Obama announced a new commitment to the Gulf Coast by signing an executive order extending the Office of the Federal Coordinator for Gulf Coast Rebuilding. The order that had established the office was set to expire, and President Obama extended the office through September of 2009. The President also announced that he has asked Homeland Security Secretary Janet Napolitano and Housing and Urban Development Secretary Shaun Donovan to tour the Gulf Coast and New Orleans in early March.
Read House Majority Whip James Clyburn on the President’s action on the Gulf Coast>>
Hurricane Katrina resulted in more than 1,800 deaths, nearly 500,000 homes in Louisiana and Mississippi being destroyed or made uninhabitable, and about 1.5 million people being at least temporarily displaced from their homes. From housing to health care to education, the region remains in a state of crisis.Unfortunately, this natural disaster was made worse by a manmade disaster. The Bush Administration’s immediate disaster response to Katrina was marked by chaos, confusion, and incompetence. In addition, Katrina recovery and rebuilding contracts were marked by epic waste, fraud and abuse – with the American taxpayer paying the bill. Indeed, a disaster expert called FEMA’s Katrina housing effort “the largest disaster-response failure in the history of the country” – with the housing effort alone resulting in over $1 billion in waste and misspent funds.
Furthermore, over the next year and a half, the Bush Administration and the GOP-led Congress failed to meet such critical needs as adequate levee protection, rebuilding funds, health care facilities, and resources for re-opening schools and universities.

In 2006, the Democratic-led Congress acted immediately to meet the most critical needs of the region. The $6.4 billion Gulf Coast Recovery package was signed by the President in May, 2007, and includes:
- Waiving the requirement that struggling local communities pay 10% of the costs of FEMA disaster recovery projects, thereby saving the Gulf Coast region $1.9 billion and allowing work on 20,000 stalled projects to begin;
- $1.3 billion to repair and complete key levee protection and flood control projects in Louisiana and Mississippi;
- $1.35 billion in Community Disaster Loan forgiveness;
- $4.3 billion in FEMA disaster recovery grants, $1 billion over the President’s request;
- Extending access to $550 million in Social Services Block Grant funding to meet the health care needs of the Gulf Coast region;
- $30 million to recruit K-12 teachers and administrators and $30 million to recruit higher education faculty; and
- Housing tax relief including extension of low-income housing tax credits.
Over the last three years, many resilient, hard-working Americans have returned to the Gulf Coast to attempt to rebuild their lives. This Congress will work with these committed individuals until the Gulf Coast is once again a thriving, vital part of the American family.
Gulf Coast Legislation Passed by the House:
Gulf Coast Housing Recovery Act
Speeds the rebuilding of homes and affordable rental units, including by freeing up $1.2 billion for the Louisiana Road Home program; helps preserve the supply of affordable rental housing; helps families by extending the Disaster Voucher Program through January 1, 2008.
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RECOVER Act
Includes numerous provisions to overhaul the Small Business Administration’s disaster assistance program in response to SBA’s disastrous performance after the 2005 Gulf Coast hurricanes.
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Disadvantaged Business Disaster Eligibility Act
Ensures that, for each small business that participates in the SBA 8(a) minority entrepreneur program and was affected by Hurricanes Katrina or Rita, the period in which it can participate in the 8(a) program is extended by 18 months.
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Accountability in Contracting Act
In response to the massive waste, fraud and abuse in Katrina-related contracts, requires federal agencies to minimize the use of "no-bid" contracts and promote the use of cost-effective fixed-price contracts.
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Federal Housing Finance Reform/Affordable Housing Fund
Creates a non-taxpayer financed Affordable Housing Fund, which during the first five years will go towards the construction of affordable housing in areas still recovering from Hurricane Katrina.
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Coverage of Hurricane Katrina in the Speaker’s blog, The Gavel>>