FEMA Waives Nearly $100 Million in Improper Katrina Payments

A new federal law means the agency won't seek money it inappropriately distributed to Louisiana residents

The Federal Emergency Management Agency has waived the repayment of $94.9 million that the agency believed it improperly paid to disaster victims between 2005 and 2010 in the aftermath of disasters including Hurricanes Katrina, Rita, Gustav and Ike, according to a report by the Department of Homeland Security Inspector General's office. The agency also denied 1,293 waiver requests, representing $6.3 million in improper payments, and has recouped $1.3 million from applicants who improperly received payments.