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1 (February 28, 2006)

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                                                               Order Code RS22239
                                                          Updated February 28, 2006



 CRS Report for Congress

              Received through the CRS Web



 Emergency Supplemental Appropriations for

                  Hurricane Katrina Relief

                                Keith Bea
              Specialist in American National Government
                   Government and Finance Division


Summary


     In response to the widespread destruction caused by Hurricane Katrina, the 109th
 Congress enacted two FY2005 emergency supplemental appropriations bills (P.L. 109-
 61 and P.L. 109-62), which together provide $62.3 billion for emergency response and
 recovery needs. These funds were appropriated as follows: $60 billion to the Federal
 Emergency Management Agency (FEMA) for aid to individuals and communities, $1.9
 billion to the Department of Defense for facilities and personnel evacuation costs, and
 $400 million to the Army Corps of Engineers for damaged water resources
 infrastructure.
     However, the funding streams of these appropriated funds and amounts for disaster
 recovery have changed and appear likely to undergo further changes, largely at the
 request of the Administration. First, the FY2006 appropriations legislation for the
 Department of Defense (P.L. 109-148) reallocated funds primarily to pay for the
 restoration of damaged federal facilities. The reallocated funds were not new
 appropriations; they were derived from the funds appropriated in the two emergency
 supplemental statutes, as well as from a government-wide rescission. Second, Congress
 agreed to transfer $712 million from FEMA to the Small Business Administration for
 disaster loans (P.L. 109-174). Third, on February 16, 2006, the Administration
 submitted an additional request of $19.8 billion in supplemental FY2006 funding for
 recovery assistance, which is pending before Congress.

     This CRS report summarizes federal disaster assistance funding legislation in the
 109'h Congress and presents some information on federal expenditures and obligations
 for disaster recovery activities. This report will be updated as events warrant.


 Overview of Disaster Appropriations

    In response to Administration requests after Hurricane Katrina struck the Gulf Coast
on August 29, 2005, the 109th Congress enacted two FY2005 emergency supplemental
measures (P.L. 109-61 and P.L. 109-62), which appropriated $62.3 billion for immediate


       Congressional Research Service +o The Library of Congress

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