Tag Archives: Houston

Hurricane Harvey makes Houston reassess growth-friendly policies

Hurricane Harvey makes Houston reassess growth-friendly policies

By Andy Sullivan

HOUSTON (Reuters) – Melinda and Joel Loshak raised two children in a stylish ranch house in Houston’s upscale Meyerland neighborhood and planned to retire there. Now they are hoping the government will knock it down.

After Hurricane Harvey pushed oily floodwaters into their house in August, the Loshaks asked local officials to buy them out, joining more than 3,000 other Houston-area homeowners who grew weary of ripping out waterlogged drywall and ruined refrigerators after three devastating floods in three years.

“I call the house my albatross. It just follows us; it’s hanging from our necks, pulling us down,” said Melinda Loshak, 61.

The buyout program is just one way Houston hopes to better protect itself against future floods. But even as the city prepares to demolish thousands of homes in low-lying areas, developers are putting up hundreds more.

Experts and some elected officials say the region needs to take a hard look at the growth-friendly policies that have increased the risk of flooding even as they have helped keep housing affordable in the United States’ fourth-largest city.

“There’s no indication that we’re going to do anything philosophically different,” said Jim Blackburn, an environmental law professor at Rice University. “With a few modifications, it’s business as usual.”

As Houston rebuilds from the most expensive hurricane in U.S. history, local officials plan to dredge waterways, build new reservoirs and a coastal barrier to protect against storms that experts say are growing in intensity due to a warming climate. They have asked Washington for $61 billion to pay for it all.

Some local leaders, such as Harris County Judge Ed Emmett, have called for development rules to be tightened and for new taxes to fund flood defenses.

Houston Mayor Sylvester Turner recently said his government would take a closer look at development projects.

But that has not stopped one developer from moving ahead with plans to build 900 houses on a former golf course in a flood zone. Local activists say it is a prime example of runaway development that will make flooding worse.

“That water now doesn’t have a place to go, and it has to go somewhere else – more likely into older neighborhoods that may or may not have flooded prior to this,” said Ed Browne, chairman of a grassroots group called Citizens Against Flooding. “It’s incredibly unfair to allow this to happen.”

Developer Meritage Homes says the project includes bigger retention ponds than are required by law to stop stormwater spilling into the surrounding community. The development “will have zero negative impact on downstream flooding,” the company said in a statement.

Since 2010, more than 7,000 homes have been built in flood zones in Harris County, which includes Houston, according to a ProPublica/Texas Tribune investigation.

Some developers say they are willing to consider tougher guidelines – up to a point.

“Any time you have a big storm like this, it’s not a bad idea to look and make sure you have the right answers,” said Augie Campbell, president of the West Houston Association, a local business group. “It’s just important that you don’t rush to judgment too quickly.”

In the meantime, Harris County officials have allocated $20 million to buy 200 homes that flooded during Harvey and are asking the federal government for another $800 million, which would let them purchase another 5,000 houses.

Some 3,636 residents have applied for the buyouts, Harris County Flood Control District spokeswoman Karen Hastings said.

The money, if it wins approval from Congress, is not likely to come through for months.

Meanwhile, the Loshaks have torn out the waterlogged kitchen cabinets they installed after their house flooded for the first time, back in 2015. They have plugged in dehumidifiers and fans to fend off mold. They do not want to have to rebuild again.

“I just would like it to be gone, because it’s so stressful and depressing to see the house and see the neighborhood and know that it’s just going to happen over and over again,” Melinda Loshak said.

(Reporting by Andy Sullivan; Editing by Daniel Wallis and Cynthia Osterman)

Houston-area woman charged with mailing explosives to Obama, Texas governor

Houston-area woman charged with mailing explosives to Obama, Texas governor

By Alex Dobuzinskis

(Reuters) – A Houston-area woman has been charged with mailing booby-trapped packages designed to explode to former U.S. President Barack Obama, Texas Governor Greg Abbott and a federal office in Maryland.

Julia Poff, 46, was ordered held in jail last week ahead of trial after she was indicted on charges of mailing packages last year that were designed to kill, transporting explosives and other criminal counts, court documents showed.

“Poff presents a real safety risk to witnesses and others in the community,” U.S. Magistrate Judge Frances Stacy wrote in a five-page order outlining the case.

Poff, who was charged earlier this month and pleaded not guilty last week, reached out to the Houston Chronicle to defend herself, the newspaper reported on its website on Thursday.

Poff told the Chronicle that investigators had taken trash from her home. The trash was “used in some serious crimes that we did not commit and know nothing about,” she was quoted as saying.

It was not clear whom Poff was referring to as “we.”

An explosive-laden package mailed to Obama in October 2016, while he was still in office, contained hair that an FBI crime lab matched to one of Poff’s cats, the judge wrote in the detention order.

Poff is said to have expressed dislike for Obama, who is a Democrat, according to the order. Packages sent to Obama and the U.S. Social Security Administration in Maryland were both stopped in screening, according to Houston TV station KPRC.

In October 2016, Abbott, the Republican governor of Texas, opened a third package that also was rigged to explode, but it failed to detonate.

The judge’s detention order said Poff was upset with Abbott because she believed that in his previous role as state attorney general, he played a part in her inability to receive support from her ex-husband.

It was unclear what type of support Poff might have sought. The state attorney general’s office has a division that handles requests for child support after a divorce or separation.

The packages sent to Obama, the Social Security Administration and Abbott contained pyrotechnic powder, and investigators found a large amount of fireworks at Poff’s home in Brookshire, west of Houston, the court order said.

Poff is represented by a public defender, who could not be reached for comment on Thursday.

She is scheduled to appear in court for a hearing on Jan. 2.

(Reporting by Alex Dobuzinskis in Los Angeles; Editing by Frank McGurty and Peter Cooney)

Texas gives Houston $50 million for Hurricane Harvey costs

Texas gives Houston $50 million for Hurricane Harvey costs

(Reuters) – Texas Governor Greg Abbott on Friday gave $50 million to Houston to help cover costs related to Hurricane Harvey, a move the mayor said will allow the city to avoid a temporary property tax hike that was up for a city council vote in October.

Mayor Sylvester Turner, who accepted the money from the Republican governor at a city hall press conference, said he will pull his proposal for a one-year tax increase to cover the city’s share of debris removal expenses and for insurance-related payments.

Parts of Houston suffered severe wind and flood damage after Hurricane Harvey made landfall on Aug. 25. It was the strongest hurricane to hit Texas in more than 50 years.

Earlier this week, Abbott rejected Turner’s request for the state to immediately tap its $10 billion rainy day fund to aid its largest city.

On Friday, the governor said he had the flexibility to withdraw $50 million from a state disaster relief fund for Houston.

“This looked like the best solution at this point,” Abbott told reporters.

He added that once the state gets a handle on total hurricane expenses, the Texas legislature will consider tapping into the rainy day fund when its next regular session begins in January 2019 or sooner in a special session.

(Reporting by Karen Pierog; Editing by Sandra Maler)

Morningside team arrives in Florida for disaster relief and YOU made it happen!

Mondo and Ricky in Immokalee, Florida on Disaster Relief visit.

By Kami Klein

Our team from Morningside is now outside of Naples Florida, in Immokalee, one of the hardest hit communities of Hurricane Irma.  With no power, lack of good drinking water and warm meals for families, the people in this community have been devastated but have gathered together as family and are working together to recover from this massive disaster.   

Mondo DeLaVega, Ricky Bakker, Tammy Sue Bakker, Daina Martin are joined by our camera crew David Zorob, Hamilton Neumann and Adam Armstrong on the ground in Florida ready to help distribute the food, water bottles and the precious leatherbound MEV Bibles to people who are hurting so much.  These donations would NOT have been possible without your generous donations and compassion!  

Immokalee, Florida is the center of the region’s agricultural industries in Florida and home to many immigrant and migrant families who work the vast fields that produce huge amounts of fresh produce to the United States.  Crops include cucumbers, bell peppers, citrus fruits and about 90% of the nation’s tomatoes that are harvested during the winter months.  

The Morningside team is working with Pastor Frank Rincon of Bethel International Assemblies of God.  This church has been the heart of a community that has been ravaged by Hurricane Irma.  In addition to  cooking and serving hot meals by the thousands, they have been responsible for distributing blankets, sleeping bags, diapers, pillows, bed sheets, coolers, T-shirts, towels, water filter kits, women’s essentials and tarps for roofs.  

“Volunteers are coming in from all of the United States to help here!” said Ricky Bakker, one of the Morningside team members. “It is amazing how people are coming together to help this community!”

The Morningside truck arrived soon after the team in Immokalee.  Hundreds of buckets have been unloaded and volunteers are ready to pass out 90 day buckets of food, rice, beans, dehydrated bananas, apples and milk along with water filter bottles from Seychelle to the many needy people in that community.  Ricky added that the rice and beans from donations to our Disaster Relief fund can stretch 3 or 4 thousand meals to 5 or 6 thousand hot meals for the families in Immokalee and surrounding areas.  “We don’t just want to bring food and water to them, we want to help offer a little bit of normal, add a little bit of comfort.”

You are the hands and feet of Jesus on the ground, and you are making a tremendous difference!  The Morningside team is there representing you and spreading the love of God to people who are desperate to hear it!  

Mondo said it best in a recent Facebook live post on The Jim Bakker Show Facebook page.    

“Thank you for being a part of the blessing of relief for these people so hard hit by disaster!  Because of your donations and faith you have given us the opportunity to serve this community!  Thank you for believing in our ministry!  Thank you for making this happen!”  

There is so much devastation here in the world today!  Hurricanes and flooding in Texas, in Florida, the Caribbean and Puerto Rico.  There are thousands of homeless people in Mexico due to earthquakes.  You ARE making an impact!  Your gifts are saving lives and helping to rebuild communities with your love and donations.  If you wish to give to our Disaster Relief and help be a part of the work that God asks of us, please give now to the Disaster Relief Fund! 

Matthew 25:42-45 MEV   42 For I was hungry and you gave Me no food, I was thirsty and you gave Me no drink, 43 I was a stranger and you did not take Me in, I was naked and you did not clothe Me, I was sick and in prison and you did not visit Me.’44 “Then they also will answer Him, ‘Lord, when did we see You hungry or thirsty or a stranger or naked or sick or in prison, and did not serve You?’45 “He will answer, ‘Truly I say to you, as you did it not for one of the least of these, you did it not for Me.’

Stay tuned for more updates on our Disaster Relief Team out on the field and watch for more Facebook live reports!

Hiscox estimates $150 million net claims from Harvey

FILE PHOTO: Jesus Rodriguez rescues Gloria Garcia after rain from Hurricane Harvey flooded Pearland, in the outskirts of Houston, Texas, U.S. August 27, 2017. REUTERS/Adrees Latif/File Photo

By Noor Zainab Hussain

(Reuters) – Lloyd’s of London underwriter Hiscox Ltd <HSX.L> estimated it would face net claims of about $150 million from Hurricane Harvey and said it has yet to determine losses from Hurricane Irma.

Insurers and reinsurers are counting the cost of Harvey, which lashed Texas in the last week of August causing flooding that put it on the scale of Hurricane Sandy in 2012.

Hiscox said it had two main areas of exposure to the hurricane – reinsurance and insurance lines, including flood cover for homeowners and businesses.

“This (claims) is within the group’s modelled range of claims for an event of this nature, and reinsurance protections for the group remain substantially intact,” Hiscox said in a statement. It said its claims’ estimate was based on an industry forecast that Harvey would lead to a total insured market loss of $25 billion.

Hiscox shares fell 3.1 percent to 1212 pence by 0913 GMT, the second biggest loser on the Stoxx Europe 600 Price Index <.STOXX>, as analysts expected the company would face bigger losses from Hurricane Irma than Harvey.

Germany’s Munich Re <MUVGn.DE> last week warned it could miss its profit target this year, the first major reinsurer to flag a hit to earnings from damage caused by hurricanes Harvey and Irma.

Shore Capital analyst Eamonn Flanagan noted that the loss from Harvey equated to about 6 percent of Hiscox’s net tangible asset value as at the June end.

Hiscox said it would announce an estimate of net claims arising from Hurricane Irma, once the impact of that storm has become clearer.

Chief Executive Bronek Masojada said the storms meant insurance rates were on an uptrend.

“After a long period of price reductions, insurance rates in the affected areas and in specific sectors such as large property are likely to increase. In the wider global insurance market for large risks, we expect rates to stabilise and begin to increase,” Masojada said.

Irma, one of the most powerful Atlantic Ocean storms on record, ravaged several islands in the northern Caribbean, killing at least 60 people, before barrelling into Florida’s Gulf Coast, causing further destruction.

“With Irma expected to be a larger event, our initial view is this is slightly more negative than we had anticipated. We expect Hiscox to trade down today and expect uncertainty to persist around Beazley <BEZG.L> and Lancashire <LRE.L> who are yet to publish their own estimates,” Keefe, Bruyette & Woods analyst Rufus Hone, said, referring to other Lloyd’s of London insurers.

Hone added that while the this year would likely be a net loss overall for Hiscox, it would not have “much of an impact” on the insurer’s expansion plans or put the dividend under threat.

Risk modelling firms RMS estimates insured losses from Harvey of $25-$35 billion, while AIR Worldwide forecast total insured losses in the United States for Irma of $25-35 billion.

 

(Reporting by Noor Zainab Hussain in Bengaluru Editing by Anjuli Davies and Susan Fenton)

 

Houston residents, officials stew over Harvey storm-trash removal

FILE PHOTO: Flood-damaged contents from people's homes line the street following the aftermath of tropical storm Harvey in Wharton, Texas, U.S., September 6, 2017. REUTERS/Mike Blake/File Photo

HOUSTON (Reuters) – Disposing of the mounds of debris lining Houston streets three weeks after Hurricane Harvey flooding damaged about 126,000 homes is riling residents and officials in the nation’s fourth largest city.

The sheer volume of work is overwhelming initial efforts, say residents, resulting in pleas from officials for the state and private contractors to contribute vehicles. Houston also is offering to increase its fees for emergency trash removal to bring in more waste disposal trucks.

“We have been asking for more trucks for weeks,” said Greg Travis, a Houston city councilor whose hard-hit west Houston district had just two trucks operating one day this week. There is no schedule of collections nor estimate when one would be available, he said.

Houston’s trash haulers are working side-by-side with a disaster contractor’s crews from San Antonio and Austin, Texas. The city’s size, about 627 square miles (1623.92 square kilometers), is larger than Los Angeles or New York.

Across Texas, the debris left behind by the storm could reach 200 million cubic yards – enough to fill up a football stadium almost 125 times, Texas Governor Greg Abbott estimated on Thursday. Harvey’s path up the Texas coast killed as many as 82 people, flooding homes and businesses with up to 51 inches of rain.

“We have no idea when it’s going to be picked up,” said Houston resident David Greely, 51. “It’s overwhelming.”

DRC Emergency Services LLC, the city’s contractor for emergency trash removal, has about 300 trucks operating in Houston and surrounding areas, according to President John Sullivan.

“We’ll reach 500 trucks in the next few days,” he said.

Houston is renegotiating its contract to expedite the work, Alan Bernstein, a spokesman for Mayor Sylvester Turner, said on Friday.

An 8.9 percent temporary property-tax increase proposed this week by the mayor would pay for damage to city property and for costs not covered by the United States. Turner estimated the cost of debris removal is $200 million.

Contract renegotiations are common during disasters, according to DRC’s Sullivan.

“There has been price adjustments for debris contractors across Texas for Harvey recovery, not just Houston,” he said.

Some well-to-do neighborhoods have begun considering paying for private trash haulers to pick up the debris.

“I don’t know if I’m on the city’s list for trash cleanup,” said Eric Olafson, 62, who added his neighbors are discussing paying private contractors to remove their debris.

(Reporting by Bryan Sims; Editing by Gary McWilliams and Diane Craft)

Harvey storm-water releases were unlawful government takings: lawsuits

FILE PHOTO: Water bubbles up from a sewer cover in an affluent neighborhood in the aftermath of tropical storm Harvey on the west side of Houston, Texas, U.S., September 7, 2017. REUTERS/Mike Blake

By Bryan Sims

HOUSTON (Reuters) – Owners of homes flooded during Hurricane Harvey are claiming billions of dollars in damages by federal and state water releases from storm-swollen reservoirs, using a legal tack pursued without success in Louisiana after Hurricane Katrina.

Several lawsuits filed in federal and state courts in Texas claim properties were taken for public use without compensation. The lawsuits name the U.S. Army Corps of Engineers and a state agency responsible for water releases. The potential damages could run as high as $3 billion, according to attorneys involved.

“No one expects your government is going to deliberately do something that is going to flood your home,” said Rhonda Pearce, 56. Her west Houston home was damaged by flooding from reservoir dam releases and she is considering legal action, she said.

“Homes were literally being swept away,” said Derek Potts, a Houston-based lawyer representing plaintiffs in a lawsuit filed in Harris County court against the San Jacinto River Authority (SJRA) in a Texas court. His lawsuits are seeking class action status and could involve thousands of homes and businesses.

Water released from a lake into the San Jacinto River was lawful and area flooding “was neither caused by or made worse” by those releases, the SJRA said in a statement. Similar claims from an earlier storm were dismissed in court, it said.

The Army Corps of Engineers referred questions to the U.S. Department of Justice, which declined to comment.

Potts said there are more than 1,000 homes valued at between $750,000 and $1 million, that could be covered by the lawsuit against the SJRA, putting potential damages in that case in the billions of dollars.

Similar cases last decade that argued the government improperly took property when levees failed in Louisiana after Hurricane Katrina in 2005 were unsuccessful, said Robert R. M. Verchick, an environmental law professor at Loyola College of Law in New Orleans.

“The Katrina plaintiffs tried to the do the same thing – and they lost,” Verchick said. “In some ways this is going to follow the same path.”

Christopher Johns, an attorney who has filed two lawsuits in U.S. Court of Federal Claims in Washington, D.C., said his firm has been contacted by hundreds of other homeowners. A 2012 U.S. Supreme Court decision involving flooding have opened the door to winning such claims, he said.

Megan Strickland, a plaintiff in one of the federal lawsuits, said while it is difficult to immediately quantify the damage to her home, many of her neighbors are in a similar situation.

“We don’t know if our neighborhood will be coming back again,” Strickland said.

(Reporting by Bryan Sims and David Gaffen; Writing by Gary McWilliams; Editing by Lisa Shumaker)

In Harvey’s aftermath, a flood of emotions as rebuilding begins

In Harvey's aftermath, a flood of emotions as rebuilding begins

By Bryan Sims

HOUSTON (Reuters) – For Texas residents affected by Hurricane Harvey, life in the storm’s aftermath involves juggling insurance claims, home repairs and work. But coping with loss is stirring very different feelings.

Staff at the Sugar Land campus of the University of Houston began their first day at work on Tuesday sharing storm experiences and consoling those whose homes were damaged.

“It’s very healing for people,” Kathryn Tart, dean of the university’s College of Nursing, said. “It helps us move on to the really difficult next stage – rebuilding.”

In an area of West Houston where some 3,000 homes suffered severe flooding and where water releases from two reservoirs continue to swamp neighborhoods, anger surfaced.

“I look out my kitchen window and there is a river that will always be there,” said Bryant Banes, who is a lawyer. He filed a lawsuit against the U.S. government in federal court claiming damages to his and neighbors’ homes and businesses from the reservoir releases.

The decision to release waters to relieve pressure on the reservoirs amounted to an improper taking of property, the lawsuit claims. “People have lost their homes and it is their responsibility to compensate residents,” Banes said.

Flood-damaged contents from people's homes line the street following the aftermath of tropical storm Harvey in Wharton, Texas, U.S., September 6, 2017. REUTERS/Mike Blake

Flood-damaged contents from people’s homes line the street following the aftermath of tropical storm Harvey in Wharton, Texas, U.S., September 6, 2017. REUTERS/Mike Blake

Harvey hit Corpus Christi in southern Texas on Aug. 25 but took the greatest toll on Houston and areas east of the city. The storm killed as many as 60 people, dumped more than 50 inches (127 cm) of rain and caused damages estimated as high as $180 billion, including to 312,000 homes along the coast.

The U.S. House of Representatives on Wednesday approved roughly $8 billion in initial emergency aid for Harvey relief and rebuilding. A Senate vote is expected later this week.

In Houston’s theater district, which sits along a drainage bayou, performances have been canceled indefinitely as assessments of repairs continue. Houston Grand Opera, Hobby Center for the Performing Arts and Alley Theatre reported flooding to some buildings and parking areas.

In east Texas, Hardin County residents were only able to return to homes on Tuesday. “Water is just now receding,” said Theresa Wigley, the county’s emergency management coordinator. “Recovery is going to be slow.”

The number of people reported missing in Houston, which climbed as high as 137 last week, was down to 18 on Wednesday as families reunited, said Beth Alberts, head of the Texas Center for the Missing.

“It is tragic and wonderful when we can match up people,” she said.

At the same time, more of the region’s energy industry was coming back online. Refiner Phillips 66 <PSX.N> said on Wednesday its Sweeny, Texas, refinery would return to full production by mid-month. Gasoline futures <RBC1>, which spiked last week, were off 2 percent on Wednesday.

Two other storms are threatening energy infrastructure in the Caribbean and Mexico. Hurricane Irma is taking aim at Puerto Rico and Florida, and Tropical Storm Katia is off the Mexican state of Veracruz and forecast to become a hurricane in a couple of days, the National Weather Service said on Wednesday.

(Reporting by Bryan Sims; Writing by Gary McWilliams; Editing by Leslie Adler)

Houston quickens pace of Harvey recovery as new storm threatens U.S.

Vince Ware moves his sofas onto the sidewalk from his house which was left flooded from Tropical Storm Harvey in Houston, Texas. REUTERS/Adrees Latif

By Gary McWilliams and Daniel Trotta

HOUSTON (Reuters) – Houston area residents picked up the pace of their recovery from Hurricane Harvey on Tuesday, jamming roads as they returned to offices and schools to help get the nation’s fourth largest city and its vital shipping and oil industries back on track.

The region is getting a boost from Mexico, which sent volunteers to shelters and is preparing to send relief supplies in the next few day. Mexican Red Cross workers were staffing shelters in three Texas cities. “We are more than glad to be helpful,” said Gustavo Santillan.

Large employers, universities and transit services reopened or began full schedules on Tuesday, with floodwaters receded and the Labor Day weekend behind them. But not all of the Houston-area’s 6.6 million residents were in position to go back to work and were dealing with home repairs and waterlogged possessions.

“It feels surreal to be back at work,” said Hannah Smith, 31, who spent part of her day putting office furniture moved ahead of the storm back in place “It is one step in the direction of whatever the new normal is.”

Harvey tore through Corpus Christi in southern Texas on Aug. 25 before churning up the coast and hitting the Houston area especially hard. The storm killed as many as 60 people, dumped more than 50 inches (127 cm) of rain and caused damages estimated as high as $180 billion, including to 203,000 homes.

Oil refineries, pipelines and shipping channels in the nation’s energy center have begun a gradual return to operations. Exxon Mobil on Tuesday said its fuel terminals in the Houston area were supplying gasoline and it continues to work on reopening a shuttered Baytown oil refinery. Motiva Enterprises [MOTIV.UL], operator of the nation’s largest refinery, said it is in the process of restarting operations at its Port Arthur, Texas, plant.

Some industry stalwarts were still out of commission though. ConocoPhillips closed its Houston headquarters through Sept. 11. BP’s Houston campus suffered severe flooding and remained closed. Portions may be out of use until December, Chief Executive Bob Dudley told Reuters. About 650 of BP’s more than 5,000 Houston area full-time staff reported damage to their homes.

“I’ve got to get work done but I don’t think it’ll be a productive day,” said Daniel Semetko, 60, a Houston energy company worker, citing the number of people who were out of their homes due to storm damage.

With extensive property damage across the region, local and federal prosecutors formed a task force to investigate reports of home repair fraud and people posing as police to facilitate theft and other crimes, officials said. About 80 investigations into complaints were underway, said David Green, a Department of Homeland Security special agent.

Houston’s school district, the nation’s seventh largest, remains closed this week to repair flooded schools. The district has said about 75 of its 275 schools suffered major or extensive flood damage, but other school districts in the area and major universities were open for class.

IRMA AT CATEGORY 5

As Houston picked up the pieces from the devastation of Harvey, a new and even more powerful hurricane was headed for the Caribbean islands, the U.S. East Coast and Florida.

The U.S. National Hurricane Center said Irma, which it upgraded to a “potentially catastrophic” Category 5 storm, was about 130 miles (210 km) east of Antigua on Tuesday afternoon. Hurricane warnings were issued for Puerto Rico, Antigua, Montserrat, St. Eustatius, the British Virgin Islands and the U.S. Virgin Islands.

Port operations along the Texas coast that service the area’s oil and gas companies returned to work. At the last three of 28 Texas coast ports still closed to ship traffic, the U.S. Coast Guard said it was monitoring water currents for when shipping might resume.

U.S. gasoline prices fell on Tuesday as traders priced in a continued restart of flooded Gulf Coast refineries. Benchmark U.S. gasoline futures were lower by about 4 percent, returning to levels last seen before Harvey made landfall.

(Reporting by Ernest Scheyder, Catherine Ngai and Ron Bousso; Editing by Bill Trott and Tom Brown)

Subdued by Harvey, Congress reconvenes facing fiscal tests

The U.S. Capitol building is seen at sunset in Washington, U.S. May 17, 2017. REUTERS/Zach Gibson

By Susan Cornwell

WASHINGTON (Reuters) – Hurricane Harvey devastated Texas, but could bring some fiscal order to Washington where Republicans and Democrats will need to put political differences aside in order to approve spending to repair the damage from flooding in and around Houston.

Lawmakers returning to Washington after a month-long break are expected to swiftly agree to an initial request for nearly $8 billion in disaster aid, with the House of Representatives considering assistance on Wednesday.

More requests will follow from the Trump administration, with the fractious Republicans who control the House and the Senate determined to look capable of governing in a crisis.

Some estimates say Harvey could cost U.S. taxpayers almost as much as the total federal aid outlay of more than $110 billion for 2005’s record-setting Hurricane Katrina.

That sobering cost and the urgent needs of Harvey’s victims have helped to calm a fiscal storm that had threatened to engulf Congress and President Donald Trump ahead of Oct. 1. The rancor revolves around the deadline for lawmakers to approve a temporary spending measure to keep the government from shutting down, as well as the need to raise the nation’s debt ceiling.

“There’s reason to hope that in the wake of the tragedy in Texas … there will be a renewed sense of community and common purpose that can help get things done,” said Michael Steel, a Republican strategist who once worked as spokesman for former House Speaker John Boehner.

Before Harvey, Trump had threatened to veto such spending and trigger a shutdown if Congress refused to fund his proposed U.S.-Mexico border wall. He has dropped his threat, the Washington Post reported on Friday, making a shutdown less likely.

As of the Labor Day holiday weekend, approval by Congress was widely anticipated in late September of a stopgap bill, or continuing resolution, to continue current spending levels for two to three more months.

The need to help Hurricane Harvey victims “creates another reason as to why you’d want to keep the government open,” Republican Senator Roy Blunt said on NBC’s “Meet the Press” Sunday.

FRESH START WITH TRUMP

With much of Washington distracted by tensions with North Korea over its nuclear program, Congress must also raise the federal debt ceiling by the end of September or early October to stave off an unprecedented U.S. government debt default, which would shake global markets.

The debt ceiling caps how much money the U.S. government can borrow, and some conservatives are loath to raise it without spending reforms. U.S. Treasury Secretary Steven Mnuchin on Sunday said Congress should act quickly to increase the debt limit, otherwise relief funding for hurricane-ravaged areas of Texas might be delayed.

“Without raising the debt limit, I am not comfortable that we will get money to Texas this month to rebuild,” Mnuchin said on Fox News Sunday.

Blunt, a junior member of Senate Republican leadership, said it was possible lawmakers could tie legislation raising the debt ceiling to measures providing financial aid for recovery from Harvey. “That’s one way to do it,” he said on Meet the Press.

The head of the Republican Study Committee, the largest group of House conservatives, said on Monday that Congress was obligated to help those hurt by Harvey.

But Representative Mark Walker also warned that “legislative games” like attaching Harvey aid to a debt ceiling hike could jeopardize consensus. “The debt ceiling should be paired with significant fiscal and structural reforms,” he said in a statement.

Senior Republicans were warning Trump not to anger Democrats by carrying through with his threat to curtail the Deferred Action for Childhood Arrivals (DACA) program for immigrant children, which Democrats widely support. Democratic votes will likely be needed to both raise the debt ceiling and prevent a shutdown.

Trump might have listened to them. Sources said on Sunday that he has decided to scrap the program that shields the young immigrants from deportation, but he will give Congress six months to craft a bill to replace it.

With his tendency to send conflicting policy signals and attack fellow Republicans, Trump may present the biggest uncertainty as Congress gets back to work.

The four top Republican and Democratic leaders of the Senate and House are set to hold a rare bipartisan meeting with Trump on Wednesday to chart a path forward for the multiple fiscal issues.

Senate Republican leader Mitch McConnell, who will attend the meetings, spent much of August feuding with Trump, who attacked the Kentuckian repeatedly on Twitter.

One Republican strategist said the Senate leader would not dwell on those tensions. “Basically every Republican senator is looking to put whatever nonsense happened on Twitter in August in the rear view mirror and focus on all the important work that needs to get done in September,” said Josh Holmes, a former chief of staff and campaign manager for McConnell.

(Additional reporting by David Morgan and Chris Sanders; Editing by Kevin Drawbaugh and Mary Milliken)