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Hurricane Katrina evacuees will now be able to use the balance of the housing assistance money they receive from FEMA to pay their utility bills.  In a class action lawsuit brought on behalf of 12 Hurricane Katrina evacuees by private attorney John Scofield in partnership with Texas Appleseed, the Public Interest Law Project, and the National Center for Law and Economic Justice, a federal district court judge ruled that FEMA must allow evacuees to use leftover rental assistance money to pay for utilities when the rental assistance that they are eligible to receive exceeds their actual rent.  Under the Transitional Housing Assistance Program, FEMA is required to provide rental assistance to displaced people in an amount based on the full market rental value for the area to which they relocate.  According to Scofield, the difference between rental costs and the FEMA housing subsidy is typically around $100 for evacuees in most cities.  Scofield says, "This is a significant step forward for people who are trying to put their lives together."  FEMA says that it will review the decision to determine the ramifications that it will have on the agency. 
Source: Armando Villafranca, Ruling Lets Evacuees Pay Utilities with Leftover FEMA Housing Aid, Houston Chronicle, July 14, 2006; Katrina Refugees Can Use Aid to Pay Bills, Associated Press, July 14, 2006; also based on original reporting by the Brennan Center staff.