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McCaul Requests Hearing on Hurricane Ike Assistance

June 10, 2009

WASHINGTON, D.C. – Congressman Michael McCaul (R-TX 10) requested a hearing before a Homeland Security subcommittee to examine the wide disparities in federal assistance administered between Hurricanes Ike and Katrina. His request comes as figures from the Federal Emergency Management Agency reveal higher average payments for overall assistance to Katrina victims and an astoundingly higher rate of housing assistance.

"Right after hurricanes hit as they have in our state we advocate on behalf of our constituents to make sure they get the assistance they need and sometimes we don’t think that comes fast enough," Rep. McCaul told FEMA Administrator W. Craig Fugate during a

subcommittee hearing assessing FEMA’s budget.

In a letter to Homeland Security Committee Chairman Bennie Thompson (D-MS), Rep. McCaul, Ranking Member of the Homeland Security Intelligence Subcommittee, specified interest "in comparing how processes, regulations and procedures at FEMA and other federal programs were different between Hurricane Katrina and Hurricane Ike and the extent to which these differences are responsible for the great disparity in the number of individuals served, amounts of assistance paid and the estimated amount of waste, fraud and abuse."

As Chairman of the Homeland Security Investigations Committee in 2006, Congressman McCaul oversaw hearings that uncovered more than $1 billion in waste, fraud and abuse of taxpayer money in post-Katrina assistance, and led to changes in the way FEMA grants assistance. Examples of money which was supposed to be spent helping people recover from the hurricanes, but which was misspent, include:

• $10.8 million to prisoners who called requesting hurricane assistance from jail,
• vacations to Orlando and Hawaii,
• Caribbean cruises,
• adult entertainment,
• people who listed their address as a cemetery,
• people who listed their damaged property address as a post office box,
• a down payment on a home in Georgia.

"While some of these changes have no doubt increased efficiency and decreased waste, the disparity suggests a possible overcorrection resulting in lack of assistance and diminished quality of service. It is incumbent upon us to examine this," McCaul’s letter to Chairman Thompson continues.

Of particular concern is that only 17% of applicants have received housing assistance after Hurricane Ike, compared to 74% who were granted assistance after Katrina. The average payout for total assistance is $722 post-Ike, compared to $4,860 post-Katrina.

"Maybe these controls are in place and taxpayers are saving money. Maybe there’s a good story here. But I also would like to know, being from Texas and having my constituents hit by hurricane Ike, I’d also like to get the answer to why such a big disparity."

In addition to his request for a hearing, Congressman McCaul has also begun the process of requesting a study on the disparity by the General Accounting Office (GAO).