Most of $4.5B in Gulf aid unspent

0 Comments | USA TODAY, January, 2008 | by Brad Heath

WASHINGTON -- Three-quarters of the billions in federal money earmarked to replace schools, firehouses and other public works after the 2005 Gulf Coast hurricanes still haven't been spent, a sign that key pieces of the region's recovery effort are languishing in red tape.

Reports from the Federal Emergency Management Agency (FEMA), provided to USA TODAY, show it has approved $4.5 billion worth of infrastructure projects in Louisiana and Mississippi. Only about $1 billion of that total has been spent.

Much of the rest is sitting in state accounts waiting to be parceled out to the local officials responsible for the rebuilding work, slowed by a complex tangle of local and federal rules.

"It's time for local governments to start making the tough...