FEMA To Pay Cost Of Hurricane Ike Clean-Up For 6 More Months

November 27, 2008 7:26 a.m. EST

Houston, TX (AHN) - The Federal Emergency Management Agency agreed to shoulder the cost of Hurricane Ike clean-up in Texas for six more months. Gov. Rick Perry asked the federal government to pick the tab for 16 months, but FEMA approved only for six months.

When Perry requested for 16 months from FEMA, the agency at that time was considering shouldering 75 percent of the clean-up bill, with the remaining portion to be shouldered by local governments. But some small towns may not have the funds to pay for the 25 percent and lead them to bankruptcy.

Until late October, the FEMA paid 100 percent for all debris removal, but reduced it to 75 percent because Texas had a state budget surplus. Perry criticized the move. He said FEMA was punishing Texas for being fiscally responsible.

Hurricane Ike, which hit the state on Sept. 13, left 12 million cubic yards of debris in Texas, with a total clean-up cost estimated at $2 billion.

According to FEMA, there had been only two disasters in which the agency shouldered 100 percent all eligible cost. These were the Cerro Grande Wildfire and the Sept. 11 Terrorist Attacks.