The Gulf Coast received hundreds of millions in foreign aid last year after Hurricane Katrina devastated the area. But, what happened to all that money?
Shocking scenes of devastation resulted in relief offers pouring in from abroad. The United Arab Emirates gave out more than $99 million. China provided $5 million. Brunei gave $1 million. Bangladesh sent $1 million. Rwanda wired $100,000. Afghanistan added $99,800. The U.S. State Department received $126 million from 36 countries and international organizations.
Where did all this money end up?
“By late October, the State Department had allocated $66 million of the $126 million in international assistance to FEMA, which then granted it to the United Methodist Committee on Relief (UMCOR), the nonprofit aid arm of the United Methodist Church. With the funds, UMCOR established Katrina Aid Today, a consortium of nine national aid agencies dedicated to case-management work for Katrina evacuees.”
According to Foreign Policy, only $13 million has actually been disbursed, and it has been allocated almost exclusively to salaries and training for case workers, not to evacuees.
As for the rest of the funds, some $60 million languished for more than six months in a non-interest-bearing account at the U.S. Treasury. Inflation obviously taking its toll.
“I can’t believe [the money] is still sitting there,” says one foreign diplomatic official who worked on relief efforts in New Orleans shortly after Katrina. “Countries gave that money, wanting it to help people affected by the hurricane. It’s a shame.”
Foreign Policy points out that:
“A smarter approach, perhaps, would have been to bypass the federal government altogether. That’s what Qatar did in May when it granted $60 million directly to New Orleans universities, hospitals, and charities. With its portion of the cash, Children’s Hospital of New Orleans has already renovated two clinics and picked up the medical bills for hundreds of local children.”
