Help me fact check Steve King's statement on Katrina funds

Were Katrina funds used on Gucci bags and massage parlors? Were they ever going to be used for those things?

I’ve tried Googling it, but I can only find articles concerning King’s debate quote, not any going back to 2005.

It’s possible that if people got insurance or FEMA checks for damage to their house, they could spend them on whatever they want to, instead of home repairs.

As someone who thought he followed Katrina fairly well this is the first I’ve heard of it.

I’d certainly like to make sure that the paycheck us taxpayers give Steve King is spent on purely necessary items. If he’s spending that money on luxury items, I think that, perhaps, we’re overpaying him.

I remember reading stories after Katrina that a fair number of those emergency debit cards were being spent at bars, casinos, strip clubs, and other such places.

I don’t know if there were any CONFIRMED stories of those relief cards being used inappropriately as I doubt those businesses would release that private information as it would indicate that they contributed to the problem for accepting those cards. And by the way, where is there a strip bar that accepts debit cards for entrance/tipping, drinks, etc. I’ve never seen that.

I’m not even sure how one could restrict these relief cards. Would you create a black list of businesses in the area where they could not be used? And even then, some large stores may sell both appropriate and inappropriate items, such that the same convenience store that sells lanterns and flashlights might also sell liquor and porn. I suspect that in any large scale relief effort, there is going to be a mass distribution of cards, there will be no restrictions on the cards, and the simple truth is that some people who receive the cards will either not need them or use them inappropriately. Rumors then circulate as truth.

After all remember all the CONFIRMED stories of people being raped at the Superdome? Oh, except none actually surfaced?

I’m sure that whoever issued the cards (either a government agency or a bank acting on their behalf) can tell you exactly where any particular card was spent. That’s the way electronic payment works, you know.

Curbing the abuse might be impractical, but that doesn’t make the abuse any less disappointing.

Steven King is misinformed.

The type of assistance that was anecdotally spent on purses & massages was a one-off program that does not typify “disaster assistance”. In resposnse to the mass evacuations of Hurricane katrina, FEMA sent out “free money” in the form of unrestricted $2000 debit cards. Those cards were meant to be used for evacuation expenses, but were sometimes – anecdotally – used for other things. In any event, FEMA had never before and has never again handed out that kind of “free money”.

Other kinds of assistance that FEMA provides to individuals is tied more directly to sheltering costs, rental assistance, medical emergencies, and such. Unlike the post-Katrina “free money,” other kinds of assistance require significant amounts of documentation to determine eligibility. FEMA’s individual-assistance system can still be gamed presumably, like any system run by human beings – but at least there are some checks in place.

I was in Houston at the time of the Katrina evacuations and the $2000 debit cards. There were a lot of rumors none actually proven about the cards being “wasted” on luxury items. However, the incident I will always remember best was the no doubt future Tea Party member who complained rather nastily in the newspaper about observing Katrina survivors buying dress suits, purses, and dress shoes with their cards. The next day a number of people responded that many of those buyers had needed clothes for job interviews.

Pretty close. Louis Vuitton yes. Maybe not Gucci.
Strip clubs yes. Maybe not massage parlors.

Per Snopes:

Thank you for the article, Iggy. I’m amazed that King’s statements had some truth to them, but that is often the case.

Well, nobody has ever said* that* before.

Heh, I mean even dubious statements often have some truth to them. King’s statements are usually more than dubious :).

Many hundreds of thousands of people, many lost everything, plus how many lost family or relatives, and some go out drinking? Quelle surprise!

Plus, I think there was a recent thread here discussing how poor people handle windfalls like tax returns or(in this case) a credit card with $2000 on it. The kind of people who never see $2000 at one time (and have the money management skills to ensure they will never save that much) are less likely to parcel it out to cover necessities over time, more likely to think “I’ll never see this again! I’m going to get my dream item while I can!”

Masseuses and strippers gotta eat, too!

I would have been worried the gov would electronically kill the cards, so I probably would have maxed it out too.

Note this paragraph from Snopes: