Federal Government to Pay News Orleans $2 Billion to Fix Crumbling Infrastructure

Hailed as the largest single down payment for infrastructure repairs ever delivered to an American city, the federal government has agreed to pay New Orleans $2 billion to fix its crumbling streets and cracking water pipes.

The deal includes an extra $1.2 billion from FEMA's Public Assistance Program to repair devastation wrought when the levees broke after Hurricane Katrina. Coupled with the $800 million FEMA had already promised and almost $1 billion in revenue City Hall and the Sewerage & Water Board has collected through additional fees, grants and bond sales, the money will be part of a $3 billion initial investment in the city's decrepit infrastructure.

(More about $2 billion federal aid agreement...)