FEMA gives away $85 million of supplies for Katrina victims While Storm Victims Struggle

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The material, from basic kitchen goods to sleeping necessities, sat in warehouses for two years before the Federal Emergency Management Agency's giveaway to federal and state agencies this year.

James McIntyre, FEMA's acting press secretary, said that FEMA was spending more than $1 million a year to store the material and that another agency wanted the warehouses torn down, so "we needed to vacate them."

"Upon review of our assets and our need to continue to store them, we determined that they were excess to FEMA's needs; therefore, they are being excessed from FEMA's inventory," McIntyre wrote in an e-mail.

He declined a request for an on-camera interview, telling CNN the giveaway was "not news."

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