Texas recovery could cost $180 bn: Governor

Image
IANS Washington
Last Updated : Sep 04 2017 | 8:42 AM IST

Governor Greg Abbott of the US state of Texas has said the bill for reconstruction after Hurricane Harvey could be as high as $180 billion.

He said on Sunday the damage was worse than that caused by Hurricane Katrina, which devastated New Orleans in 2005, BBC reported.

Meanwhile, the head of the government's disaster management agency has warned that flood-hit states should not rely on Washington to pick up the bill. Brock Long said Harvey should be a wake-up call for local officials.

Recovery operations are under way across Texas, and in neighbouring Louisiana, although many areas are still battling floodwater.

The devastating hurricane made landfall in the state a week ago and has been blamed for at least 47 deaths. About 43,000 people are being housed in shelters.

The US government has already asked Congress for $7.85 billion as an initial contribution towards recovery efforts, which Abbott called a "down payment".

He had previously said the state might need more than $125bn in aid, but revised that figure up on Sunday.

"Katrina caused, if I recall, more than $120 billion (of damage) but when you look at the number of homes and business affected by this I think this will cost well over $120 billion, probably $150 billion to $180 billion," he told Fox News.

The White House has warned that the US debt ceiling - the cap on government spending - will need to be raised to meet the bill for recovery. Only Congress can raise that limit.

Brock Long, the head of the Federal Emergency Management Agency (FEMA), told CBS that Harvey should be a lesson to state officials that they needed to set aside reserve funds for their own emergency management departments.

"It is a wake-up call for this country for local and state elected officials to give their governors and their emergency management directors the full budgets that they need to be fully staffed, to design rainy-day funds, to have your own stand-alone individual assistance and public assistance programmes," he said.

--IANS

pgh/

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Sep 04 2017 | 7:58 AM IST

Next Story