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This story originally appeared in the Jackson Free Press. It was added to the Mississippi Free Press website in 2025.
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JACKSON, Miss. (AP) — A federal auditor says FEMA should demand the return of $5.3 million of Hurricane Katrina reconstruction money from the University of Southern Mississippi.

The Department of Homeland Security’s Inspector General says it reviewed $12.2 million of the $41.1 million that USM received to rebuild its Gulf Park campus in Long Beach following the 2005 hurricane.

FEMA officials must decide whether to demand the money’s return or discard the finding.

Frances Lucas, USM’s vice president for Gulf Park, says the university agrees that it should relinquish claim to $1.44 million it never spent. But she says $3.85 million was mostly spent properly. She says that some spending immediately following the storm didn’t follow federal guidelines on bids. But Lucas says it was impossible to take proper bids right after the storm.

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The Mississippi Free Press produced this story through the MFP Solutions Lab, supported by the Solutions Journalism Network. This series digs into Mississippi’s systemic issues and sheds light on responses to them in other communities. Beyond just reporting on problems, these stories interrogate their causes and inspect potential solutions.

Amy covers Georgia politics and state government for The Associated Press. He began work with the AP in 2011 and covered Mississippi for eight years before transferring to the Atlanta bureau in 2019.