House establishes corporation to redevelop Gulf Coast

Opposition from conservative Republicans notwithstanding, the House Financial Services Committee last Thursday approved a bill to establish a government-operated corporation to redevelop areas of Louisiana hit by Hurricane Katrina. The measure also would direct the spending of $17 billion already appropriated for hurricane relief to rebuilding communities and providing temporary housing for evacuees. The bill (H.R. 4100), sponsored by Representative Richard Baker (R-La.), cleared the committee on a roll call vote, 50-9, with a handful of conservative Republicans voting to defeat it. Several GOP members offered amendments that they say would have added increased accountability to the measure, but the provisions were largely defeated by a bipartisan group of lawmakers led by committee chairman Michael Oxley (R-Ohio).

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