House leader outlines emerging disaster relief package

House Speaker Nancy Pelosi, D-Calif., Monday said she was putting together a natural disaster relief package for states affected by Hurricane Ike, Hurricane Gustav, Western wildfires, severe tornadoes and record flooding that hit the Midwest this summer.

It might be a part of a developing plan for an economic stimulus or continuing resolution, she said.

"The devastation caused by Hurricane Ike demands a swift federal response," Pelosi said in a release. Pelosi did not say how much funding she wants to provide.

Ike came ashore over the weekend as a Category 2 hurricane and devastated the city of Galveston, Texas, which bore the brunt of the storm, and caused widespread power outages in Houston and the surrounding areas.

"Congress will move quickly to pass emergency disaster assistance funds to help those in Texas and other states affected by this tragedy," Pelosi said. "From debris removal and housing needs, to the restoration of infrastructure and local economies, the emergency disaster package will cover the range of recovery needs that must be immediately addressed."

The package will also aim to address the needs of areas affected by Hurricane Gustav, which struck about 90 miles southwest of New Orleans as a Category 2 storm, as well as other disasters.

"In addition to addressing needs associated with Hurricane Ike, this emergency assistance package will also provide funds needed for the still unfolding response to Hurricane Gustav, the wildfires that have raged in California and other Western states, and the severe tornadoes and record flooding that hit Iowa and other Midwestern states in May and June," Pelosi said.

Congress approved $2.65 billion in Midwest flood relief as part of the Iraq war supplemental that was signed into law in June. But much of that funding has not gone where it's needed, according to Pelosi.

"It is unacceptable that the Bush Administration and bureaucratic red tape has unnecessarily slowed delivery of these vital funds to the affected regions and individuals," Pelosi said. "I call on President Bush to direct ... [the] agencies responsible for administering disaster response to expedite release of the funds Congress appropriates to all states, localities, communities, and families in need."

There are two possible legislative vehicles for the disaster funding, including a $50 billion second economic stimulus bill that House Democratic leaders might bring to the House floor late this week. But the timing is unclear given that there could be resistance from the Blue Dog Coalition over increasing the deficit.

House and Senate Democrats hope to pass the package before Congress adjourns for the year.

In a conference call Monday in support of a stimulus, Michigan Gov. Jennifer Granholm said the "overwhelming economic hurricane" that has struck the nation, and which has left her state with an 8.5 percent unemployment rate, demands federal action.

"This is the time for the federal government to step in and help citizens," Granholm said. "We have seen them step in to bail out, or help out, Wall Street. Now they need to step in to help out Main Street."

Another possible vehicle could be the continuing resolution Congress is expected to pass to fund the federal government beyond the end of the fiscal year, Sept. 30. Democratic sources said that they are hoping to take up the CR early next week using their oil and gas drilling package to deal with the White House for a measure that runs through at least the week of Nov. 17.