Order Code RS22239
Updated November 1, 2005
CRS Report for Congress
Received through the CRS Web
Emergency Supplemental Appropriations for
Hurricane Katrina Relief
Jennifer E. Lake
Domestic Social Policy Division
Ralph M. Chite
Resources, Science, and Industry Division
Summary
In response to the widespread destruction brought to the Gulf Coast by Hurricane
Katrina, the 109th Congress completed action on two separate emergency supplemental
bills (P.L. 109-61/H.R. 3645 and P.L. 109-62/H.R. 3673), which together provide an
additional $62.3 billion for emergency response and recovery needs. Both measures
match the funding requested by the Administration — $10.5 billion in P.L. 109-61 and
$51.8 billion in P.L. 109-62. Of the combined amount provided in the two measures,
$60 billion enables the Federal Emergency Management Agency (FEMA) to provide
emergency food, shelter, and medical care to areas stricken by the hurricane and other
disasters. In addition, $1.9 billion was appropriated to the Department of Defense to pay
for damage to its facilities and personnel evacuation costs, and $400 million to the Army
Corps for damaged flood control projects. On October 28, 2005, the Administration
requested the reallocation of $17.1 billion primarily to pay for restoring damaged federal
facilities, and submitted a rescission request of $2.3 billion from 17 accounts to pay for
some of the disaster costs. This report will be updated as events warrant.
Overview of Congressional Action1
Hurricane Katrina struck the Gulf Coast of the United States on August 29, 2005,
causing widespread flooding and significant property and infrastructure damage to
Louisiana, Mississippi, and Alabama. In response, the 109th Congress completed action
on two emergency supplemental measures (P.L. 109-61/H.R. 3645 and P.L. 109-62/H.R.
3673), which together have provided $62.3 billion in emergency supplemental funding
for immediate relief and response needs. (See Table 1.) Both measures contain funding
levels as requested by the Administration in two separate submissions, and both were
1 Other CRS analysts contributing to this report were Keith Bea (FEMA), Amy Belasco
(Defense), and Nicole T. Carter (Army Corps of Engineers).
Congressional Research Service { The Library of Congress

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enacted within one day after the requests were received — P.L. 109-61 on September 2
and P.L. 109-62 on September 8.
Table 1. FY2005 Supplemental Appropriations in Response to
Hurricane Katrina
($ in billions)
1st Supp.
2nd Supp.
Total
Federal Agency/Activity
P.L. 109-61 a
P.L. 109-62
appropriation
FEMA
10.0
50.0
60.0
Manufactured Housing
3.3
1.6
4.9
Supplies/Materials
0.4
1.9
2.3
Temporary Financial Assistance
0.8
23.2
24.0
FEMA Logistics
0.5
2.6
3.1
Infrastructure Repair
0.1
7.7
7.8
Damage Inspections
0.1
0.3
0.4
Urban Search and Rescue
0.1
0.1
0.2
Army Corps of Engineers b
2.4
3.0
5.4
Department of Defense b
2.1
2.5
4.6
Other
1.0
7.2
8.2
Army Corps of Engineers
—
0.4
0.4
Department of Defense
0.5
1.4
1.9
Total:
10.5
51.8
62.3
Source: CRS analysis of Senate Budget Committee, Budget Bulletin, 109th Congress, 1st Session: No. 5,
Sept. 12, 2005.
Note: Amounts may not add to totals due to rounding.
a. The breakdown of FEMA spending, includes $681 million previously appropriated to FEMA. Hence,
the sum of the FEMA components is $681 million greater than the $60.0 billion provided by the two
supplementals.
b. Reflects funds appropriated to FEMA and then transferred as reimbursement for services provided in
response to Hurricane Katrina.
The first supplemental (P.L. 109-61) provided $10 billion in FY2005 funding for the
Department of Homeland Security’s Federal Emergency Management Agency (FEMA),
and $0.5 billion for the Department of Defense (DOD) to support the costs of evacuation,
emergency repairs, and deployment of personnel, and other costs resulting from the
immediate relief efforts. The second supplemental (P.L. 109-62) added $50 billion to the
FEMA funding and $1.4 billion to the DOD funding, and also provided $400 million to
the Army Corps of Engineers for restoring the Gulf state waterways and repairing their
flood control projects.

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Breakdown of Enacted Supplemental Spending
FEMA. The two enacted emergency supplemental appropriations measures
directed a total of $60 billion to the Disaster Relief Fund (DRF) administered by FEMA.
DRF funds provide assistance to individuals, families, state and local governments, and
certain nonprofit organizations, as authorized by the Stafford Act. Stafford Act aid is
available after the President issues a declaration that federal assistance is needed to
supplement the resources of states and localities overwhelmed by particularly significant
catastrophes.2 Federal assistance supported by DRF money is used by states, localities,
and certain nonprofit organizations to provide mass care, restore damaged or destroyed
facilities, clear debris, and aid individuals and families with uninsured needs, among other
activities. In response to Hurricane Katrina the President has issued major disaster
declarations for Louisiana, Mississippi, Alabama, and Florida.3
Of the $50 billion provided to FEMA in P.L. 109-62, up to $100 million may be
transferred to the National Disaster Medical System (NDMS) for medical and related
relief teams.4 P.L. 109-62 also contains a provision allocating $15 million for the
Department of Homeland Security’s Inspector General to carry out audits and
investigations related to Hurricane Katrina response and recovery activities. Beyond these
two allocations, neither of the two supplementals contains specifics on how the FEMA
funding is to be used. The second supplemental (P.L. 109-62) does require the Secretary
of DHS to submit a weekly report to the Appropriations Committees detailing the
obligation and allocation of the $50 billion contained in the act, with the first report due
to Congress no later than September 15, 2005. A comparable provision was not included
in the first enacted supplemental.
In addition to supplemental appropriations, funds are also appropriated to the DRF
during the annual appropriations process. For example, for FY2005, Congress
appropriated $2.0 billion to the DRF during the annual appropriation process and later
provided $6.5 billion in supplemental disaster relief funding (P.L. 108-324) after
Hurricanes Charley, Frances, Ivan, and Jeanne struck Florida and other states in the U.S.
in the summer of 2004.5 For the FY2006 Department of Homeland Security
appropriation, the President requested and both the House and Senate recommended,
comparable funding of approximately $2 billion for the DRF.6
2 For more information on the Stafford Act and the DRF, see CRS Report RL33053, Federal
Stafford Act Disaster Assistance: Presidential Declarations, Eligible Activities, and Funding, by
Keith Bea.
3 For information on Hurricane Katrina, including the disaster declarations, see U.S. Federal
Emergency Management Agency (FEMA), “Hurricane Katrina Information,” at [http://www.
fema.gov/press/2005/resources_katrina.shtm], visited Sept. 2, 2005.
4 For more information on the NDMS, see CRS Report RL31719 An Overview of the U.S. Public
Health System in the Context of Emergency Preparedness, by Sara A. Lister.
5 For more information, see CRS Report RL32581, Supplemental Appropriations for the 2004
Hurricanes and Other Disasters, by Keith Bea and Ralph M. Chite.
6 For more information, see CRS Report RL32863, Homeland Security Department: FY2006
Appropriations, coordinated by Jennifer E. Lake, and Blas Nuñez-Neto, pp. 49-53.

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Defense Funds Appropriated. Between the two enacted supplementals, the
Department of Defense (DOD) has received $1.9 billion — $500 million in P.L.109-61,
and an additional $1.4 billion in P.L. 109-62 (see Table 1). As projected by DOD, $1.3
billion of the total will be used for emergency evacuation of military and civilian
personnel, debris removal, and emergency repairs at over 20 defense installations affected
by the hurricane, and $570 million to pay the cost of mobilizing and supporting some
44,000 National Guard personnel. These funds do not include $4.6 billion in projected
FEMA reimbursements to DOD (for “mission assignments”) for its rescue operations.
Damage at defense installations ranges from minor damage to fences and roofs to
wholesale damage to Keesler Air Force Base in Mississippi. Three of the damaged
facilities — the Naval Support Activity in New Orleans, the Mississippi Army
Ammunition Plant, and the Naval Station in Pascagoula, Mississippi — were
recommended for closure by the Department of Defense in the ongoing Base Realignment
and Closure round.7

All supplemental DOD funds appropriated thus far are to Operation and
Maintenance, Defense-wide, and are set up as a transfer account whereby DOD can move
monies to other accounts depending on the type of expense (e.g., to pay military personnel
costs, operating costs, procurement, family housing, and Defense health). Unneeded
funds in any account may be returned to the transfer account, and then transferred
elsewhere. Congress approved the amounts requested by the Administration but added
language requiring DOD to notify the congressional defense committees (Armed Services
and Appropriations) of any transfer of funds within five days of a transfer.
Defense Re-allocation Request. The Administration’s October 28, 2005 re-
allocation request would transfer $6.5 billion of the funds previously appropriated to
FEMA to the Department of Defense primarily to repair and replace defense facilities and
Navy ships under construction. The request proposes:
! $2.1 billion to repair defense facilities;
! $2.3 billion to replace equipment, including $2.0 billion for Navy ships
under construction at Ingalls shipyard in Mississippi and the Marine and
Land Facility in New Orleans;
! $1.4 billion to repair and replace family housing and other facilities;
! $553 million for military personnel costs; and
! $66 million for Research, Development, Test & Evaluation (RDTE) to
replace testing equipment and $52 million for working capital and trust
funds.8
7 The Base Closure Commission’s final report was submitted to the President on September 8,
2005, which included a recommendation to realign (rather than close) Naval Support Activity,
New Orleans, and to close the other two facilities.
8 U.S. Executive Office of the President, Office of Management and Budget, “Estimate No.13,”at
[http://www.whitehouse.gov/omb/budget/amendments/reallocation_package_10_28_05.pdf],
visited Nov. 1, 2005.

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Military personnel and operation and maintenance funds would be available for one
year, RDTE and non-ship procurement funds for two years, and shipbuilding and military
construction funds for five years.
The Administration also requested authority to transfer $750 million of the funds
requested for the Department of Defense, as well as general provisions allowing military
personnel deployed for Katrina to accumulate up to 120 days of leave, and permitting the
Secretary of Defense to temporarily increase basic housing allowances by up to 20% for
those in the disaster area based on certifications from service member.
Army Corps of Engineers (Civil Works). As requested by the President, the
second supplemental (P.L. 109-62) contained an appropriation of $400 million directly
to the U.S. Army Corps of Engineers for its civil works program.9 Not included in this
amount is an additional $5.4 billion the Corps may receive by transfer from FEMA (see
Table 1) for emergency support for public works and engineering, under the National
Response Plan.10
Of the $400 million appropriated directly to the Corps, $200 million was for the
agency’s Operation and Maintenance account to repair storm damage at Corps projects
in affected Gulf states, and $200 million was for its Flood Control and Coastal
Emergencies account to continue repairs of damaged flood control and hurricane shore
protection projects in affected Gulf states. The Corps reports weekly to the Committees
on Appropriation on the allocation and obligation of these funds; as of October 28, 2005,
the Corps had allocated all but $5 million of the $400 million.
The estimated $5.4 billion transfer from FEMA to the Corps for public works and
engineering support, includes technical assistance, engineering, and construction
management as well as emergency contracting, power, and repair of wastewater and solid
waste facilities. The Corps is also tasked with providing assistance in the monitoring and
stabilization of damaged structures and the demolition of structures designated as
immediate hazards to public health and safety.
October 28 Budget Amendments. The rate of expenditure from the DRF varies
according to the needs that result from a catastrophe and the type of assistance authorized
to be provided. Aid to victims for immediate concerns (housing, purchase of clothing,
uninsured essential needs) is provided quickly. According to the Department of
Homeland Security, over 1 million households have received more than $3.5 billion in
9 The U.S. Army Corps of Engineers (Department of Defense) has military and civilian
responsibilities. Under its civil works program at the direction of Congress, the Corps plans,
constructs, and operates, and maintains a wide range of water resources facilities.
10 The Stafford Act (42 U.S.C. 5170b) authorizes FEMA to direct DOD to use its resources to
provide assistance in the event of a major disaster or emergency declaration by the President.
Under the National Response Plan, DOD is responsible for emergency support for public works
and engineering. The Corps is the designated operating agent for DOD in executing these
activities. The Corps’ funding for these activities is provided through mission assignments made
by FEMA and paid for from the Disaster Relief Fund. For additional information, see
[http://www.usace.army.mil/inet/functions/cw/cecwo/readness.htm], visited Nov. 1, 2005.

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disaster assistance during the first three weeks of recovery.11 On the other hand, it is not
unusual for the drawdown of funds from the DRF to take years for the reconstruction of
communities. The devastation caused by Hurricane Katrina, and the need to consider the
redesign of many communities, including New Orleans, will likely result in months if not
years of plans, reconfigurations, and contracting negotiations.
The President submitted a reallocation request to Congress on October 28, 2005, “to
undertake response and recovery activities in the affected regions that cannot be funded
by FEMA under the Stafford Act,” primarily for repair and replacement of federal
facilities.12 The reallocation decision may have been based upon the recognition of the
historically slow drawdown rate in the DRF for the repair and replacement of community
infrastructure facilities. The Administration contends that after the reallocation is made,
“remaining amounts available in the DRF are expected to be sufficient through May of
2006 to proceed uninterrupted with ongoing disaster-response efforts underway in the
affected regions, state and local infrastructure rebuilding requirements, as well as potential
costs arising from Hurricane Wilma.” Funds would be reallocated to accounts
administered by 11 departments (Agriculture, Commerce, Defense, Health and Human
Services, Homeland Security, Housing and Urban Development, Interior, Justice, Labor,
Transportation, and Veterans Affairs) and seven other accounts (Environmental Protection
Agency, the Corps of Engineers, General Services Administration, National Aeronautics
and Space Administration, Small Business Administration, Armed Forces Retirement
Home, and the Judicial Branch). The submission also includes language providing
authority for any federal agency to transfer funding to meet emergency needs resulting
from Hurricane Katrina, pending notification to Congress.
In an effort to address concerns about the cost of the federal response to the disasters,
the President also submitted that same day a budget amendment that would rescind “$2.3
billion from lower-priority federal programs and excess funds.”13 The rescissions, if
approved by Congress, would affect 12 departments, most of which would receive
reallocated funds, and five other accounts.14
11 “Emergencies & Disasters, Hurricane Katrina: What the Government is Doing,” at
[http://www.dhs.gov/interweb/assetlibrary/katrina.htm], visited Nov. 1, 2005.
12 U.S. Executive Office of the President, Office of Management and Budget, “Estimate No.13,”at
[http://www.whitehouse.gov/omb/budget/amendments/reallocation_package_10_28_05.pdf],
visited Nov. 1, 2005.
13 U.S. Executive Office of the President, Office of Management and Budget, “Estimate No.14,”at
[http://www.whitehouse.gov/omb/budget/amendments/rescission_package_10_28_05.pdf],
visited Nov. 1, 2005.
14 The departments that would be affected by the rescission include Agriculture, Commerce,
Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and
Urban Development, Interior, Labor, State, and Treasury. The five accounts from which funds
would be rescinded include those administered by the Environmental Protection Agency, the
Broadcasting Board of Governors, the Corporation for Public Broadcasting, the Federal
Communications Commission, and International Assistance Programs.

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