New Orleans Gets More Money for Katrina Damage

The settlement consists of $1.2 billion in previously unobligated recovery funds. The city of New Orleans, Sewerage and Water Board of New Orleans, and the Governor's Office of Homeland Security and Emergency Preparedness worked with FEMA to develop a final estimate of eligible costs for repairs.

New Orleans and federal officials this week announced a final settlement of $2 billion for Hurricane Katrina-related damage to New Orleans' roadways and subsurface infrastructure, including water, sewer, and drainage pipes. The settlement consists of $1.2 billion in previously unobligated recovery funds. The city of New Orleans, Sewerage and Water Board of New Orleans, and the Governor's Office of Homeland Security and Emergency Preparedness worked with FEMA to develop a final estimate of eligible costs for repairs, and the city and board have requested approval of a capped sub-grant giving them flexibility to use the funds throughout the roadway and subsurface infrastructure systems.

"When we came into office, New Orleans' recovery was stalled. I charged my administration with going back to the drawing board on our city's recovery from Hurricane Katrina," Mayor Mitch Landrieu said Dec. 10. "And today, I am excited to announce that after years of negotiations with FEMA, the city and Sewerage and Water Board have reached a final settlement for Hurricane Katrina-related damage to New Orleans' roads and subsurface infrastructure. In total, this $1.2 billion lump sum settlement in previously unobligated recovery funds brings the total to over $2 billion in new funding for infrastructure repairs secured since we took office in May 2010. After working closely with FEMA for the last five years, we have successfully secured a major down payment to repair our city's aging infrastructure. Throughout this effort, FEMA has been a valued partner in our recovery and we thank them for their continued commitment. With this lump sum settlement, we will be able to make significant progress repairing outstanding damage left by Hurricane Katrina to our neighborhood roads, while at the same time making our city stronger and more resilient."

The $1,287,364,867 lump sum settlement has been approved by FEMA. As part of the settlement agreement, FEMA will allow the state to submit a final request for an updated Hazard Mitigation Grant Program lock-in ceiling amount.

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