I might be inclined to agree with you. If you would phrase the last part ('Fed blameless') this way:
The Feds share some responsibility for failing to recognize, or even believe, the complete incompetence of the local and State 'leaders' sooner.
Just a thought process I'm working through. I might be wrong.
I'll buy that, but there were some "paperwork" impediments that hampered an immediate response once the levees had broken.