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Audit: FEMA Misspent $1B in Hurricane Katrina Relief

HeadlineApr 14, 2006

A new audit from the Department of Homeland Security has determined FEMA misspent at least one billion dollars after Hurricane Katrina in attempts to secure temporary housing for evacuees. $900 million dollars was lost when FEMA bought 25,000 manufactured homes that were too big or unsafe in flood zones. The audit also criticized FEMA for spending over $850 million dollars to put up evacuees in hotels and on cruise ships for months at a time at rates far above the cost of private apartments. The spending has left FEMA short of funds to deal with other matters. Last week Democracy Now visited a FEMA trailer park in Baker, Louisiana where residents complained FEMA had just stopped providing free meals due to lack of funding.

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