News

FEMA ordered to pay New Orleans $10 million

FEMA ordered to pay New Orleans $10 million

Lower Ninth Ward residents Eileen Lange (L) and Janet Aubert (R) question a representative from the Federal Emergency Management Agency (FEMA) in New Orleans December 2, 2005. Residents of the Lower Ninth Ward, one of the hardest hit areas of Hurricanes Katrina and Rita, were permitted to visit their homes and recover belongings for the first time on December 1. Photo: Reuters/Lee Celano - RTR19Z7T

By Amanda Becker

(Reuters) – The U.S. Federal Emergency Management Agency has been ordered by a federal arbitration panel to reimburse New Orleans for more than $10 million in wages paid to city emergency personnel after Hurricane Katrina.

FEMA is obligated to pay the Louisiana city $10.8 million to cover one-third of the salaries paid to police, fire and medical personnel during the four months after Katrina hammered New Orleans in 2005, a three-judge panel of the U.S. Civilian Board of Contract Appeals said in an August 29 decision reviewed by Reuters.

New Orleans had asked the CBCA, which resolves contract disagreements between executive branch agencies, to review a May 2012 determination by FEMA that it would not pay the first-responder salaries.

FEMA officials had previously said the agency would reimburse New Orleans for one-third of the regular pay of critical personnel so the city could avoid layoffs. But years later, a FEMA representative told city officials by email that agency protocol prohibited it from making such payments.

A FEMA spokesman had no immediate comment.

The CBCA arbitrators agreed with the city that FEMA policy did not bar reimbursement of regular pay incurred following a disaster. “In the aftermath of the devastation in New Orleans, the city was financially crippled and faced the prospect of bankruptcy, lacking cash reserves and population or commerce available to pay taxes,” the decision noted.

FEMA said on August 28 that it has provided Louisiana with nearly $19.6 billion in recovery assistance after Katrina and Hurricane Rita, which also hit the state in 2005.

(Editing by Kevin Drawbaugh and Eric Walsh)

Recent Headlines

in Sports

NFL: Legal process will play role in punishments

nfl

Punishment for players implicated in domestic violence will not be imposed upon arrest but at some point "farther down the process."

in National

Ebola czar starts work, drugmakers launch vaccine drive

ebola

The Obama administration is ramping up its response to the potential spread of the virus.

in National, World

Canadian parliament attacked, soldier fatally shot

canadashooting

A gunman shot a soldier and then entered the country's parliament buildings, with at least 30 shots fired in dramatic scenes in the heart of the Canadian capital.

in National

U.S. farmers battling bugs

harvest

With record harvests depressing prices, farmers are using chemicals that protect stored grain from critters.

in National, World

Jeffrey Fowle, freed from N. Korea, back on American soil

fowle

U.S. Secretary of State John Kerry welcomed the release of one of three Americans held in North Korea.