"..Later that day, Bush administration officials sent Blanco a legal memo seeking to federalize Louisiana law enforcement under the Insurrection Act, which is used to suppress civil disobedience that threatens to turn into anarchy. The act would clarify the chains of command of local, state and federal agencies with the president in charge.
Rather than cede control, Blanco on Saturday morning named James Lee Witt, who ran the Federal Emergency Management Agency under Clinton, to help run relief efforts..."
"Blanco met the presidential party at Baton Rouge Metropolitan Airport, carrying a letter to Bush which showed she's not budging on the issue of federalizing local law enforcement and the state's National Guard, which the president had attempted to do Friday.
"I write to ask you to work with me in developing a long-term plan for the rebuilding of the Louisiana economy," Blanco says in the letter."
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The federalization, somehow, would cede redevelopment control to the Feds. The unreported side of this story is control of the money.