January 27, 2010 3:03 PM

Haiti Gets a Penny of Each U.S. Aid Dollar

(AP)  Only 1 cent of each dollar the U.S. is spending on earthquake relief in Haiti is going in the form of cash to the Haitian government, according to an Associated Press review of relief efforts.

Less than two weeks after President Obama announced an initial $100 million for Haiti earthquake relief, U.S. government spending on the disaster has tripled to $317 million at latest count. That's just over $1 each from everyone in the United States.

Relief experts say it would be a mistake to send too much direct cash to the Haitian government, which is in disarray and has a history of failure and corruption.

Complete Coverage: Devastation in Haiti

"I really believe Americans are the most generous people who ever lived, but they want accountability," said Timothy R. Knight, a former US AID assistant director who spent 25 years distributing disaster aid. "In this situation they're being very deliberate not to just throw money at the situation but to analyze based on a clear assessment and make sure that money goes to the best place possible."

The AP review of federal budget spreadsheets, procurement reports and contract databases shows the vast majority of U.S. funds going to established and tested providers, who are getting everything from 40-cent pounds of pinto beans to a $3.4 million barge into the disaster zone.

"We are trying to respond as quickly as we can to this catastrophe of biblical proportions by mustering all of the resources that the United States government can bring to bear, first on rescue leading into relief, which is where we are right now, and hopefully seamlessly into recovery," said Lewis Lucke, U.S. special coordinator for relief and reconstruction.

Major relief efforts were launched within hours of the Jan. 12 earthquake that killed at least 150,000, devastated the capital of Port-au-Prince and affected a third of its 9 million people. Behind each effort has been cash and contracts, airline tickets to be purchased and ocean freighters to be leased.

Of each U.S. taxpayer dollar, 40 cents is going to the U.S. military, paying for security, search and rescue teams, and the Navy's hospital ship USNS Comfort.

Another 36 cents funds US AID's disaster assistance - everything from $5,000 generators to $35 hygiene kits with soap, toothbrushes and toothpaste for a family of five.

Just over a dime has already been spent on food: 122 million pounds of pinto beans, black beans, rice, corn soy blend and vegetable oil. When purchased in bulk, the actual food prices are relatively low. Pinto beans, for example, cost the U.S. government 40 cents a pound when purchased in 5 million-pound batches last week.

Getting the food to Haitians - paying for freighters, trucks and distribution centers, and the people to staff them, took another 10.5 cents from each dollar.

Initial disaster spending was aimed at saving lives; now the spending is shifting to recovery. The Obama administration wants to put about 1.5 cents of each dollar directly into Haitian quake survivors' hands by paying them to work. One program already in place describes paying 40,000 Haitians $3 per day for 20 days to clean up around hospitals and dig latrines. That project also includes renting 10 excavators and loaders, at $600 each, and 10 dump trucks at $50 a load.

One penny of each dollar is going straight to the shattered Haitian government, whose president is sleeping in a tent while struggling to organize an administration that was notoriously unstable even before the earthquake. A final half-cent funds three Dominican Republic hospitals near the Haitian border, where refugees have been begging for help.

The U.S. is providing the largest slice of a global response that totals more than $1 billion in government pledges. The European Union's 27 nations are contributing $575 million.

The U.S. also has long been the largest donor of ongoing foreign aid that Haiti depends on for up to 40 percent of its budget, with more than $260 million in U.S. money last year aimed at promoting stability, prosperity and democracy.

Private money also is flowing into Haiti - U.S. charities have raised $470 million for disaster relief, according to The Chronicle of Philanthropy, and the U.N. says total international giving - spent and pledged - has topped $2 billion.

The U.S. government funding flows through federal agencies that administer $2.6 billion already appropriated in the 2010 budget for foreign disaster relief, said Thomas Gavin, a spokesman at the White House Office of Management and Budget.

Gavin said there are no plans to ask Congress for more money.

"At this point, the costs incurred are well within the levels appropriated by Congress for emergency disaster assistance," he told the AP. "It's like your checking account, your family budget - you decide, 'OK, I'm going to spend "X" number of dollars on my groceries.' Well, we, as a country, set this money aside."

© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 12 Comments
by SIKCHUTNAY January 31, 2010 6:24 AM EST
AND 85 OUT OF EVERY 100 PENNIES DISAPPEAR INTO THE HAITIAN VOID
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by cleric60 January 27, 2010 3:33 PM EST
Only 1 cent of each dollar the U.S. is spending on earthquake relief in Haiti is going in the form of cash to the Haitian government, according to an Associated Press review of relief efforts"
GOOD! From the article it appears that the money is going directly to assist the people of Haiti, not their corrupt government leaders.
I still wonder where are the wealthy/powerful Haitians, what are they doing to help/support their poor sister and brothers? Are they using their wealth to help rebuild their own nation?????
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by rwsmith29456 January 27, 2010 3:17 PM EST
I think it would be a good idea to get this disaster taken care of THEN examine our foreign aid policies.
Reply to this comment
by jt92202 January 27, 2010 2:30 PM EST
"The U.S. is providing the largest slice of a global response that totals more than $1 billion in government pledges. The European Union's 27 nations are contributing $575 million."

"Private money also is flowing into Haiti - U.S. charities have raised $470 million for disaster relief, according to The Chronicle of Philanthropy, and the U.N. says total international giving - spent and pledged - has topped $2 billion"

So the American government (we the people) have not only pledged the most money by any government but also the individuals and US charities have raised almost as much and all the EU governments put together. I think that is rather pathetic!!! Par normal!!!
Reply to this comment
by erasmus111 January 27, 2010 8:23 PM EST
by jt92202 January 27, 2010 2:30 PM EST
So the American government (we the people) have not only pledged the most money by any government but also the individuals and US charities have raised almost as much and all the EU governments put together. I think that is rather pathetic!!! Par normal!!!


Patting yourselves on the back, are ya? There are many countries contributing what they can. Most look after their own first, and then do what they can for others. Something the U.S. doesn't do. Canada sent money immediately and has also erased their debt. They also had a disaster response team on it's way there within hours of the quake. They were there in 16 hours. They ordered ships, helicopters and vehicles to be readied to leave. They have a field hospital set up. And here there are organizations busy raising money for rebuilding.

I know that you like to believe that your country is the ONLY country doing anything, but that isn't so. Don't believe everything you read.
by erasmus111 January 27, 2010 8:31 PM EST
And one other thing. From the moment of the quake, Canada put adoptions on the fast-track. Today, 52 children arrived in Ottawa to be placed with families. And that is the SECOND plane to arrive.
by PatDaddy67 January 27, 2010 2:29 PM EST
This headline was deliberately controversial sounding. The fact is that almost all of a relief dollar is being spent in the relief effort. Just because only $0.01 per $1.00 is going to the Haitian government itself does not mean that the victims are not seeing relief. In point of fact, more value is going directly to the people the way things are being done now.
Reply to this comment
by winslowe1 January 27, 2010 1:49 PM EST
"In this situation they're being very deliberate not to just throw money at the situation but to analyze based on a clear assessment and make sure that money goes to the best place possible."

Sure is different from the way the stimulus money was thrown to the wind.
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by Phxfire January 27, 2010 8:05 PM EST
Let me guess, you are a rabid FOX viewer and believer in the baseless rantings of the far right (well paid) talking heads.
by chipsmydog January 27, 2010 1:34 PM EST
Once again, The United States of America puts its money where it's mouth is. We not only talk the talk, we walk the walk.

What an interesting adventure it would be for the rest of the world if we could do a "It's a Wonderful Life" with America playing he part of "George Bailey".

What benefit the world enjoys because of the God given freedom and prosperity foundational to the U.S.? To God be the glory!
Reply to this comment
by stormerF2 January 27, 2010 1:20 PM EST
SO what your saying is RUSH LIMBAUGH was right?
Reply to this comment
by teaparty2010 January 27, 2010 2:15 PM EST
AWWW YAAAA
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