Nonprofit Newswire | Texas Hurricane Victims Lose $40 million to Red Tape and Neglect

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September 30, 2010; Source: Houston Chronicle | NPQ has been hearing a lot lately about the disasters caused by overly complex administration and reporting systems for federal monies. In Texas victims of hurricane Ike will lose $40 million in support because the money was not released before the deadline, apparently due to red tape.

Yesterday a bill, which would have extended the deadline, was defeated in the House even after it had been passed by the Senate with bipartisan support. Unfortunately the Senate sent a note requesting that the bill be passed unanimously and one Kansas rep. refused to vote on it because, according to House Leadership (as reported by Rep. Sheila Jackson Lee), he had not taken the time to read the bill.

Neighborhood Centers, which serves 175,000 families affected by the hurricane in Harris, Fort Bend and Waller counties, will lose $8 million from its original $16.5 million award and apparently about $100 million in federal funds will be lost overall by agencies aiding disaster victims in Texas, Florida, Missouri, Louisiana and Illinois.—Ruth McCambridge