FEMA to forgive debts from Hurricane Katrina

The Federal Emergency Management Agency next week will notify 90,000 households in the Gulf region that they could be eligible to have their debts to the agency forgiven.

FEMA is acting in accordance with a provision inserted into the giant 2012 omnibus spending bill by Sen. Mary Landrieu (D-La.).

Landrieu, Sen. Mark Pryor (D-Ark.) and Sen. Thad Cochran (R-Miss.) on Wednesday praised the agency for swiftly implementing the provision. Pryor said an estimated $70 million in debts are involved, and Landrieu said the average household owes the government about $4,800.

The debts arose from mistakes FEMA made in the wake of Hurricane Katrina in 2005.  To qualify, the debt must be due to FEMA mistakes and must have accrued between 2005 and 2010.

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