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| Determining whether storm damage is from wind or flooding will affect insurance payouts. CNN's Chris Huntington reports (September 7) |
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WASHINGTON (CNN) -
The Bush administration will ask Congress to approve $51.8 billion to pay for the recovery from Hurricane Katrina, White House Press Secretary Scott McClellan said Wednesday.
He said the administration will present a supplemental aid bill that would include $50 billion for the Federal Emergency Management Agency, $1.4 billion for the Department of Defense, and $400 million for the Corps of Engineers.
The formal request will likely be sent to the Hill Wednesday afternoon.
The funds would be in addition to the $10.5 billion already approved by Congress.
Reuters reported the White House and Congress in coming weeks will consider longer-term measures to rebuild the shattered region and help survivors with housing, jobs and a host of other needs. Some congressional sources said those additional longer-term measures could top $100 billion.
The Congressional Budget Office (CBO) said Wednesday Katrina could cost 400,000 jobs nationwide and cut up to 1 percent from the nation's economic growth in the second half of the year.
The CBO, the non-partisan budget arm of Congress, said much of the economic damage nationwide will come from higher oil prices crimping the economy.
The Gulf of Mexico is responsible for about a quarter of the country's domestic oil production and contains its only deep-water port for oil imports.
Oil surged following the storm, reaching an all time trading high of $70.85 the day after Katrina made landfall. Crude prices have since eased.
The storm, which hit coastal Louisiana and Mississippi Aug. 29, caused hundreds and perhaps thousands of deaths along with widespread flooding and devastation.
--from staff and wire reports
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