New Orleans Faces $1 Billion Shortfall for FEMA-Funded Roadwork

After years of delays, cost overruns, and deadline extensions on a FEMA-funded street repair program, New Orleans officials face a massive funding shortfall and accusations of mismanagement.

2 minute read

June 17, 2024, 10:00 AM PDT

By Mary Hammon @marykhammon


As part of a 2015 deal to settle outstanding Hurricane Katrina Claims, the U.S. Federal Emergency Management Service granted the city of New Orleans $1.7 billion to complete nearly 300 street projects by August 2023. But as of May 2018, only $10 million of the funding was under construction and the city was under federal scrutiny. In 2022, that deadline was pushed to March 2025. Today, with less than a year to go, according to an article from Nola.com, not only are city officials planning to request another extension, but they are also facing a budget shortfall of as much as $1 billion.

“According to Joe Threat, the city's Deputy Chief Administrative Officer for Infrastructure, estimates from the construction firms involved in the work have skyrocketed due to higher costs for labor and materials that have impacted all sorts of projects since the start of the pandemic,” reports Nola staff writer Sophie Kasakove. Costs also rose as workers began tearing up streets and identifying additional repair needs. But some local elected officials say the program has been handled badly from the start.

In an effort to get a handle on delays and cost overruns, which Kasakove writes have plagued the effort over the past six years, the city recently contracted consulting firm CDM Smith, which identified the $1 billion estimated shortfall as part of a draft “gap analysis.” She reports “68 out of 273 projects set to be completed through what's known as the Joint Infrastructure Recovery Request, or JIRR, are currently on hold awaiting additional funding,” and 100 projects are in the planning process but not yet started, according to the city’s roadwork website. The city has expressed its commitment to completing all the projects, but local leaders and residents are frustrated and quickly running out of patience.

Saturday, June 15, 2024 in NOLA.com

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Concrete Brutalism building with slanted walls and light visible through an atrium.

What ‘The Brutalist’ Teaches Us About Modern Cities

How architecture and urban landscapes reflect the trauma and dysfunction of the post-war experience.

February 28, 2025 - Justin Hollander

Complete Street

‘Complete Streets’ Webpage Deleted in Federal Purge

Basic resources and information on building bike lanes and sidewalks, formerly housed on the government’s Complete Streets website, are now gone.

February 27, 2025 - Streetsblog USA

Green electric Volkswagen van against a beach backdrop.

The VW Bus is Back — Now as an Electric Minivan

Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.

March 3, 2025 - ABC 7 Eyewitness News

View of mountains with large shrubs in foreground in Altadena, California.

Healing Through Parks: Altadena’s Path to Recovery After the Eaton Fire

In the wake of the Eaton Fire, Altadena is uniting to restore Loma Alta Park, creating a renewed space for recreation, community gathering, and resilience.

2 hours ago - Pasadena NOw

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

4 hours ago - Axios

Close-up of row of electric cars plugged into chargers at outdoor station.

Electric Vehicles for All? Study Finds Disparities in Access and Incentives

A new UCLA study finds that while California has made progress in electric vehicle adoption, disadvantaged communities remain underserved in EV incentives, ownership, and charging access, requiring targeted policy changes to advance equity.

March 9 - UCLA Luskin Center for Innovation