September 12, 2005

On September 9, President Bush signed a $51.8 billion emergency aid package which passed the Senate by 97-0 and the House 410-11, earlier that day. The Katrina relief package, the second, brings total aid appropriated to $62.3 billion; another request will be arriving in the coming days. The financial breakdown for the $51.8 billion includes:

Public Assistance: $26.13 billion

• Disaster unemployment assistance: $813.4 million

• Damage inspections: $250 million

• Housing and other short-term aid: $23.2 million

• Manufactured housing: $1.6 million

• Legal, mental health counseling funded: $250 million

Rebuilding public infrastructure: $7.65 billion

Future Disaster Prevention: $648.8 million

FEMA: $4.58 billion

• Logistics: $2.6 billion

• Supplies and materials: $1.9 billion

• Urban search and rescue: $75 million

Other Agencies: $12.8 billion for other agencies

• Army Corps of Engineers operations, repairs at $3.4 billion;

• Defense Department operations, repairs at $3.9 billion; and

• Other federal agencies at $5.5 billion).

On September 7, Budget writers decided to delay the budget reconciliation process for at least two weeks while congressional leaders scramble to respond to Hurricane Katrina and ponder how to pursue their plans for cuts in mandatory spending programs. With the Gulf Coast disaster dominating the congressional agenda and the costs spiraling upward, many congressional leaders has asked GOP leaders to abandon their plans to assemble filibuster-proof packages of mandatory spending and tax cuts. And with some Republican senators urging their leaders to postpone spending cuts to entitlement programs including Medicaid health care for the poor, it is unclear whether the legislation imposing such cuts could make it out of the Finance Committee and other panels directed to make the reductions by the fiscal 2006 budget resolution H Con Resolution 95. Under the budget resolution, a $35 billion, five-year package of mandatory spending cuts and a $70 billion package of tax cuts would be protected from filibuster on the Senate floor. Committees are directed to report out spending cut legislation by Sept. 16, while the House Ways and Means and Senate Finance panels are to produce tax cut legislation by Sept. 23.

On September 4, President Bush signed into law H.R. 3645, the Emergency Supplemental Appropriations Act to Meet Immediate Needs arising from the Consequences of Hurricane Katrina 2005. The supplemental appropriates provides $10 billion for emergency disaster relief. In addition, $500 million was appropriated to the Department of Defense for emergency hurricane expenses to support costs of evacuation, emergency repairs, deployment of personnel, and other costs resulting from immediate relief efforts to remain available until September 30, 2006.

There are many proposals floating around Washington regarding additional funding and regulatory actions to assist in the relief efforts. Some of the "pending" proposals include:

HR 2862, "Katrina Emergency Relief Act" -- introduced by Senators Reid and Landrieu have introduced the HR 2862 which would provide 100% federal match for all emergency Medicaid enrollees; Coverage for anyone in LA, MS or AL disaster-affected parishes/counties wherever they end up, plus coverage for anyone who lost their job b/c of Katrina; Ease enrollment and streamline eligibility without regard to assets or income; and would temporarily suspend Medicare Part D "clawback" and transition of dually-eligible from Medicaid to Medicare to prevent survivors from losing drug coverage; Additionally, the bill would provide the following response in several different areas including housing, education, and victim relief.

HR 2862 Commerce-Justice-Science appropriations Bill -- On Thursday, for example, Sen. Blanche Lincoln, D-Ark., offered an amendment to the fiscal 2006 that would cut what she described as "red tape" that is preventing Katrina victims from receiving Medicaid and to make sure medical service providers are reimbursed for their services. Separately, Sen. Max Baucus, D-Mont., has proposed legislation that would give storm victims immediate access to Medicaid, guarantee full federal support for states that provide services under Medicaid or the State Children's Health Insurance Program, as well as extending unemployment insurance and provide funds from the TANF contingency fund for hurricane ravaged states Alabama, Louisiana and Mississippi.

HR 3668 -- The House passed, 414-0, legislation (HR 3668) that would allow the Education Department to waive repayment requirements for students who receive campus-based aid and have been displaced from their institution because of a natural disaster. Those programs include work-study, and TRIO and GEAR-UP, which provide low-income students with services to help them complete high school and enter and remain in college.

HR 3169 -- The House passed a measure by a vote of 409-0 on Sept. 7 that would allow the Education Department to waive the repayment requirement for displaced students receiving Pell grants.

HR 3650 -- The court relocation measure would allow a federal court to move its proceedings when emergency conditions leave no venue within its jurisdiction available. The Senate cleared the bill by voice vote Thursday, and Bush is expected to sign it.