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Congress to take back Texas' unspent federal disaster funds

by khou.com staff

khou.com

Posted on September 30, 2010 at 12:25 PM

HOUSTON -- You wouldn’t think anyone would have trouble spending $94 million, but the State of Texas did.

The money was federal disaster funding given to the state after Hurricane Ike.

Now, because it wasn’t spent, Congress is taking it back.

Social service agents will begin laying off employees Thursday. Services they offered, such as health care, counseling, transportation and housing, will stop immediately.

Congress had taken up a vote to extend the deadline for Texas to use the money, but the bill failed.

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