Posted on October 9, 2008

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Congress Approves $100 Million for Red Cross

Congress will give the American Red Cross $100 million in emergency funding to replenish its depleted disaster relief reserves, the Washington Post reports.

The Red Cross had requested $150 million last month to help it pay off debts incurred while providing shelter, food, and other services to victims of a string of natural disasters — the first time the charity had turned to the federal government for financial assistance since 2004, when it received $70 million from the government after four hurricanes hit Florida. This year, an unusual number of disasters, including spring tornadoes, California wildfires, Midwestern floods, and hurricanes Gustav and Ike has challenged the Red Cross and other disaster relief organizations, many of which are struggling in a slowing economy.

The Red Cross has spent approximately $260 million responding to natural disasters this year and took out loans totaling $200 million to cover its costs. Last month, the organization launched a national campaign to recoup some of those funds and has raised $42 million to date. It still needs about $60 million to pay off its debt, however. According to Red Cross president and CEO Gail J. McGovern, "This has been an absolutely extraordinary year in terms of these big disasters and the challenges they bring."

Rucker, Philip. “Congress Vows $100 Million to Red Cross After It Asks for Aid.” Washington Post 10/08/08.

Primary Subject: Human Services
Secondary Subject(s): Hurricane Relief, Public Affairs
Location(s): National

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