Preliminary Information on Rebuilding Efforts in the Gulf Coast

The size and scope of the devastation caused by the 2005 Gulf Coast hurricanes presents the nation with unprecedented rebuilding challenges. These storms destroyed wide swaths of housing, infrastructure, and businesses and displaced hundreds of thousands of people from their homes. Today, nearly two years since these hurricanes made landfall, rebuilding efforts are at a critical turning point. The Gulf Coast and the nation are facing the daunting challenges of rebuilding. Our recent work in southern Louisiana and New Orleans confirms that some communities are still without basic needs, such as schools, hospitals, and other infrastructure, while the doors of many businesses remain closed. Over the coming years, perhaps decades, many neighborhoods and communities will need to be rebuilt--some from the ground up. At the same time, major decisions will need to be made regarding a wide range of issues including coastal restoration, levee protection, infrastructure, land use, and economic recovery. Agreeing on what rebuilding will be done, where, how, and--particularly important--who will bear the costs will be key to moving forward with the rebuilding process. To assist Congress in its oversight responsibilities, GAO briefed Congress on several occasions during the past few months on the results of our preliminary work in Louisiana and Mississippi--the two states most directly affected by the 2005 Gulf Coast hurricanes. This letter transmits information provided during those briefings. Specifically, this letter (1) places the federal assistance provided to date in the context of the resources likely needed to rebuild the Gulf Coast; (2) discusses two key federal programs that provide rebuilding assistance to the Gulf Coast states, with an emphasis on the Community Development Block Grant (CDBG) program; (3) describes differences in Louisiana's and Mississippi's approach to using CDBG funds; and (4) provides some observations on planning activities in Louisiana and Mississippi and the role of the federal government in coordinating Gulf Coast rebuilding efforts.