First Estimates on Katrina Costs For Washington Hit $200 Billion

The Wall Street Journal ^ | September 7, 2005 | JOHN D. MCKINNON, DAVID ROGERS , and DIONNE SEARCEY

[Brilliant]

The federal government could spend as much as $150 billion to $200 billion caring for the victims of Hurricane Katrina and rebuilding from its devastation, according to early congressional estimates -- a total bill that would far surpass the initial costs of recovering from the 9/11 terror attacks and could put Katrina on track to become the most expensive natural disaster in American history...

Even as levee breaches were being repaired in New Orleans and oil spills and fires were posing new problems, a torrent of federal relief spending was under way. The Federal Emergency Management Agency is committing funds at a rate close to $1 billion to $2 billion a day, officials estimated...

But that will be only a down payment on a federal tab that all now agree is going to reach more eye-popping levels. The width of the storm's impact adds to costs. Among other things, the federal aid will include not only immediate relief but also major payments under the national flood-insurance program, and new appropriations to subsidize small-business disaster loans. What makes this disaster's costs extraordinary, however, is the fact that so many people face such a lengthy displacement and will now need housing and individual income and health assistance under a government safety net that didn't exist when the famous floods of the 1920s hit the same region...

Senate Democratic Leader Harry Reid of Nevada was the first to go public, predicting a government commitment of $150 billion. Top Republicans bridled initially, saying any such estimates at this time translated into playing "political games."

But Mr. Gregg subsequently used an even higher $200 billion estimate, and defended Mr. Reid's figure. "I don't find that crazy at all," Mr. Gregg said. "That's a reasonable estimate from what we know so far."...

[dennisw]

WOW! I was thinking 100 billion five days ago.

[dennisw]

Ray Nagin- "New Orleans is a party city, get over it" Good link.
I hate my tax dollars used to rebuild that shithole called New Orleans

[Asfarastheeastisfromthewest...]

These estimates are way low - even for the cost of rebuilding the city. The real costs are going to be felt in places you don't even realize. Last Friday I got a call from one of my customers - a steel plant who was putting out a desperate world-wide plea to find a source for liquid hydrogen. One of the major suppliers will be out of commission because of the hurricane for a long time and this will affect the entire industry. My guess is that steel will increase somewhere between 10 and 50% within days. This is just one solitary item and of course means that you will pay for Katrina the next time you buy a car. My guess is that the costs for this will easily go over a trillion and could be closer to 5 trillion once all these factors are added in.

[DallasMike]

Fellow Freepers:

At the suggestion of writer Michelle Malkin last Friday, I have cobbled together a blogsite called Texas Clearinghouse for Katrina Aid to serve as a clearinghouse for refugee efforts in Texas.

Texas is getting more refugees than any other state -- that's fine, we'll take them all -- but we need help providing them with food, clothing, and shelter.

If you are a refugee, you can information that will help you find relief. If you want to donate or volunteer, you can find someone who needs you.

Right now the site mostly covers Houston, Dallas, and San Antonio but I will add various churches, schools, and other charities in Ft. Worth and Lubbock tonight. My wife spent yesterday at Reunion Arena in Dallas handing out care packages and otherwise ministering to the refugees as a representative of her employer.

There are a lot of churches and other organizations in Texas that need help in dealing with the problem and I would greatly appreciate it if you would get the word out.

Many thanks,

Michael McCullough

Stingray blogsite