How much is the US government likely to spend on hurricane relief?
Following the political criticism of the initial response to the hurricane, politicians in Washington are rushing to ensure that they are seen as generous as possible to the victims of Katrina. The Bush administration first asked for $11bn in hurricane relief to the fund the activities of Fema, the Federal Emergency Management Agency. But with Fema spending $2bn a week on rebuilding and relief, that was increased to $51bn – which Congress approved within 24 hours of the president requesting it. About half that money will be allocated to housing, $11bn will go to infrastructure projects, and $8bn will go to public assistance. Individual households can receive up to $26,200 in damage and replacement costs. Now demands are growing for more public spending, especially from southern Republican senators, who have called for a “domestic Marshall plan”. And Mr Bush has made it clear that more money will be forthcoming. Extra help with health care, unemployment, education, and housing is likely
