City Says It Will Not Return $2 Billion From FEMA

The logo of the Federal Emergency Manage

The city of New Orleans says it doesn't plan to return $2 billion to the Federal Emergency Management Agency.

A federal inspector general wants FEMA to take back the money issued after the Hurricane Katrina disaster. A report states investigators found New Orleans' infrastructure was "old and in poor condition" before the collapse of the levees.

Agency officials disagree with the recommendation and say the inspector general will have to go to higher authorities before getting the money back.

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