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Thursday, October 20, 2005

Report: FEMA overpaid at least $174 million to Katrina victims

Oct 20, 2005

FORT LAUDERDALE, Fla. (AP) -- The Federal Emergency Management Agency issued overpayments of at least $174 million in its rush to distribute emergency payments to Hurricane Katrina victims, a newspaper reported Thursday.

In three Louisiana parishes FEMA issued checks worth at least $70 million, representing more payments than there were households. In 36 parishes and counties in Louisiana, Mississippi and Alabama, FEMA awarded $102 million to at least 51,000 more applicants than local officials said were displaced by the storm, the South Florida Sun-Sentinel reported.

FEMA intended the aid for displaced families, one payment per household, the newspaper said.

The alleged overpayments occurred while the federal agency was eliminating red tape to dispense $2,000 checks and debit cards to help victims pay for living expenses after they were forced from their homes by the Aug. 29 storm and rising floodwaters.

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