I think a lot of places would fail your "highly ethical people in power test". Unless you think N.O. and Louisiana leaders and government are the only ones with ethical problems among our politicians. In fairness I don't think that is what you believe and frankly I don't trust most of them, no matter where they are from. I would urge the feds and anybody else to completely control where any money given to Louisiana is spent. Audit it till the cows come home as far as I'm concerned.
I agree with you - lots of government bodies are unethical - that needs to be remedied. It seems to be obvious to you that LA and NO government is corrupt, it is the responsibility of the federal government to hold it and its bad actors to account - not give them access to huge amounts of taxpayer money to waste.