US reels as hurricane claims $68 billion

The US Congress has approved $US51.8 billion ($A68 billion) in Hurricane Katrina emergency funding, even as politicians begin to fret loudly over the staggering costs of the relief effort.

The huge aid bill, which passed overwhelmingly today in both the House and the Senate, is the second tranche of Katrina emergency funds passed after the US legislature last week approved an initial $US10.5 billion ($A13.8 billion) emergency package.

But with estimates of the costs of Katrina now approaching $US200 billion ($A262.78 billion), Republicans and Democrats expressed reservations about the runaway spending, and called for the appointment of an official to oversee and manage Katrina-related federal aid.

"When this much money gets put out this fast, there's a real danger," said Republican Jeff Sessions on the floor of the Senate.

"I feel that the Senate is in a bit of hurricane mode ... The mode is, that we don't need to be too careful. We need to get money out fast. We need to pour it in there.

"Now we're seeing figures that it's going to be $US200 billion ($A262 billion) to do this reconstruction, and we know - all of us know - that there's no money to pay for this," said Sessions, whose home state of Alabama, along with Mississippi and Louisiana, was devastated by Katrina.

Sessions pointed out that the United States is already staggering under a massive budget deficit, believed to be about $US331 billion ($A434.9 billion), according to the most recent Congressional Budget Office estimate.

"Our children and grandchildren will pay it, plus the interest that accumulates on it," Sessions said of the Katrina aid.

Representative Jeff Flake called on Congress to offset spending for Hurricane Katrina relief with funding from lower priority programs.

"If ever there was a reason to cut spending, this is it," said Flake.

"Today Congress appropriated another $US50 billion ($A65 billion) in hurricane relief, and it's just a start," Flake said.

"That's an average contribution of more than $US600 ($A788) from every household in America. Congress has the responsibility to cut spending elsewhere if we are going to commit this amount of money."

Another Republican, Representative Tom Tancredo, introduced legislation to create a special House committee to monitor Katrina-related spending.

"There is no question that billions of dollars are needed - and are needed immediately - to provide relief and reconstruction for Louisiana. But the urgent need of resources does not excuse us from our duty to safeguard the American taxpayers' money," said Tancredo.

"I'm concerned that the federal government has created a situation that is ripe for fraud and abuse.

"Billions of dollars are being handed out to a place where there is severely compromised infrastructure, where local officials have been incompetent in their early response to the emergency, and where there is little if any oversight in administering the funds."

AFP

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