AlterNet takes a look at our progress in the Gulf Coast two years after Katrina made landfall and finds that the shockingly inept response from Federal and Local officials continues:

  • Washington set aside $16.7 billion for Community Development Block
    Grants, one of the two biggest sources of rebuilding funds, especially
    for housing. But as of March 2007, only $1 billion -- just 6 percent --
    had been spent, almost all of it in Mississippi. Following bad
    publicity, HUD spent another $3.8 billion on the program between March
    and July, leaving 70 percent of the funds still unused.
  • The
    other major source of rebuilding help was supposed to be FEMA's Public
    Assistance Program. But of the $8.2 billion earmarked, only $3.4
    billion was meant for nonemergency projects like fixing up schools and
    hospitals.
  • Louisiana officials recently testified that
    FEMA has also "low-balled" project costs, underestimating the true
    expenses by a factor of four or five. For example, for 11 Louisiana
    rebuilding projects, the lowest bids came to $5.5 million -- but FEMA
    approved only $1.9 million.
  • After the failure of
    federal levees flooded 80 percent of New Orleans, the U.S. Army Corps
    of Engineers received $8.4 billion to restore storm defenses. But as of
    July 2007, less than 20 percent of the funds have been spent, even as
    the Corps admits that levee repair won't be completed until as late as
    2011.