U.S. Government Plans Overhaul in Disaster Aid

The Department of Homeland Security, responding to months of criticism and ridicule, is revamping several of its core disaster relief programs, enacting changes that will include sharply cutting emergency cash assistance for victims of major disasters, and more carefully controlling access to free hotel rooms.

Emergency debit cards worth $2,000 were handed out last year; such aid will be limited to $500.
Immediate emergency aid would not exceed $500 under the new rules, instead of the $2,000 per family previously allowed. And it would be handed out only after identities and addresses were checked. Such precautions were not taken consistently last year after Hurricanes Katrina and Rita, an oversight auditors said led to fraud and abuse of up to $1.4 billion.

from the NY Times