
Congress will withhold $5.8 billion in New Orleans flood-defense funding because Louisiana
has not offered the $1.8 billion match necessary to trigger federal funds. The Army Corps of Engineers will not go through with levee and other construction projects necessary to prevent another Hurricane Katrina.
Louisiana, one of the poorest states in the nation, wants the feds to give the state 30 years to pay their share.

A unique homelessness situation confronts post-Katrina New Orleans. A recent survey
conducted by advocacy groups shows that a majority of the homeless were residents of New Orleans before the hurricane, and lost their jobs and homes as a result.
Figures cited in today's New York Times
include:
- 86 percent of homeless are from the New Orleans area.
- 60 percent cite Hurricane Katrina as the cause of their homelessness, while 30 percent said they received assistance from FEMA at one time.
- 80 percent have at least one physical disability, 58 percent have had some kind of addiction, 40 percent are mentally ill, and 19 percent deal with all three issues.
- The number of homeless has doubled since Katrina, according to rough estimates.
For an more in depth look at the problem, read more.

Following the recent
earthquake, China plans to rebuild one of its worst-hit cities, Beichuan, in a completely different location. Of the city's 161,000 residents, at least 7,227
died in the quake. The region's Communist Party Chief
said:Safety is the top priority in selecting a new location and reconstruction.

In another blow to Hurricane Katrina survivors who've struggled to rebuild their lives, some are receiving crushing phone calls — they may have to
refund thousands of dollars of grant money they received to rebuild. Apparently in the rush to get aid to homeowners in need, over-payments were rampant.
The contractor who was hired to distribute payments from the Road Home grant program has just uncovered 1,000 to 5,000 cases that it says will require collection effort.