I thought of an analogy. You are the homeowner, and you want to do some remodeling. You go to the bank to get some money. In between there is a contractor who will do the work. Do you let the bank tell you how to use the money? The contractor? Or do you want control of the remodeling?
You, the homeowner, are the state of Louisiana. FEMA is the remodeler (a bit, and the bank, a bit), and Uncle Sam is clearly the bank.
FEMA brings the combination of expertise and resources that the state asks for.
Okay, it's not a real good analogy - but maybe it hels see the difference between transferring money and transferring control.
So the State was actually right to want to control the remodeling??