There is a myth that $110 billion was devoted entirely to New Orleans for after the levees failed during Hurricane Katrina. But according to Brookings Institution, federal allocations supported responses to three hurricanes (Wilma, Rita and Katrina) that struck the Gulf Coast in the fall of 2005. Further, the aid was to all five states between Florida and Texas. There is also general assumption that much of those dollars support longer-term recovery and reconstruction, when in fact, the bulk of the early funds provided emergency housing and other aid to families and support to states and federal agencies for clean up and other emergency activities immediately after the storms. Almost $20 billion was flood insurance payouts to citizens collecting on their own private insurance claims.
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