S1777FEB17

TheWeekInCongress.com (TM)

Week Ending February 10, 2006

S.1777 An original bill to provide relief for the victims of Hurricane Katrina.

The bill would look at numerous loose ends in dealing with the aftermath of Hurricane Katrina including removal of limitations on how much money and for what disaster relief purposes the Federal government may distribute to home and property owners victimized by Hurricane Katrina.

The $26,200 total amount of assistance limit per single major disaster would be waived; no limitation of amount of assistance for repairs (now $5,000) is proposed and replacement assistance for owner occupied housing now capped at $10,000 would be increased.

The bill authorizes the President to increase maximum Federal share of assistance to 90% from 75% and authorizes him to continue unemployment assistance to those still unemployed for another 13 weeks up to 39 weeks. The amount of unemployment assistance for each week would have to be at least 50% of the national average weekly unemployment benefit as of the date of Katrina’s impact. That provision would raise the basic amount ($100 per week) of Disaster Unemployment Assistance given to the self-employed to $135.

An amendment to the bill would prohibit anyone from receiving the HUA funds when already receiving other assistance. Another amendment provided that “that inspectors who determine eligibility for FEMA assistance may not enter into contracts with those for whom they perform inspections.”

The President may also reimburse communities for certain supplies they bought and distributed to Katrina victims.

The bill would take another stab at repealing the increase from $2,500 to $250,000 spending limits for ‘micro-purchases’ by government officials on a government credit card without competitive quotes or spreading the purchase out among multiple vendors.

Congress’ ‘sense’ is presented such that the Dept of Homeland Security should suspend or refrain from deporting international students and scholars because Hurricane Katrina made them unable to fulfill the terms of their visas.

Sponsor: Senator Susan Collins (R-ME)

Vote:

Cost to the taxpayers: CBO estimates that enacting S. 1777 would increase spending by

$1.1 billion over the 2006-2008 period but would have no net impact on total outlays over the next 10 years because it would reduce spending after 2010. waiving the limits on direct financial assistance to individuals affected by Hurricane Katrina would cost more than $850 million over the next three years. CBO assumes that DUA spending related to Hurricane Katrina will total $250 million. CBO estimates that providing an additional 13 weeks of benefits under S. 1777 would cost $115 million in 2006.

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