House Passes CDBG Funds, Nixes Earmark

The House has approved $4.2 billion in Community Development Block Grant funds for hurricane relief but brushed aside the Bush administration's request to earmark the funds exclusively for Louisiana.During the consideration of the supplemental appropriations bill, the House rejected (by a 210-212 vote) an amendment by Rep. William Jefferson, R-La, to increase the CDBG funding by $2 billion. Unless the Senate, which is expected to act on the supplemental bill soon, comes up with more CDGB funds, it appears that Louisiana will have to share with Texas, which is seeking $367 million in CDBG funds to repair and rebuild housing damaged by Hurricane Rita. Meanwhile, the Louisiana Recovery Corp. has approved a homeowners' assistance plan that uses previously appropriated CDBG funds to provide up to $150,000 to homeowners to repair and rebuild their homes. The Louisiana plan still needs public input and legislative approval before it can be sent to the Department of Housing and Urban Development for final approval.