Bush Pledges Historic Effort To Help Gulf Coast Recover

Sensitive to fueling further criticism, the White House said it paid for the electricity and lights used for the speech, limiting the local inconvenience. But Bush emerged onto the square without an audience, speaking directly into the camera from a lectern placed so the Jackson statue would be in the picture.

Congressional Democrats did not wait for the speech to lay down markers for how they think the Gulf Coast should be rebuilt -- and to lay the blame on Bush for Washington's sluggish performance.

"The families in the Gulf . . . certainly don't need to hear another speech from President Bush," said Senate Minority Leader Harry M. Reid (D-Nev.). "What they need is leadership. . . . Let's be clear about what Katrina was: a failure of leadership." Reid called for "an American Marshall Plan" to rebuild the Gulf Coast and accused Republicans of balking at even greater spending on health, housing and education for victims.

Reid insisted on an independent commission to investigate what went wrong with Katrina. But Republicans rejected that.

The House adopted a plan for a joint investigative committee that would have a Republican majority but grant Democrats authority to call witnesses and seek subpoenas from the GOP chairman. Rep. Thomas M. Davis III (R-Va.) was tapped Thursday to serve as co-chairman along with Sen. Susan Collins (R-Maine). Davis said Thursday night that among the first witnesses he will call will be Michael D. Brown, the FEMA director who resigned this week under fire.

Moving to expand the $62 billion in relief already approved for the Gulf Coast, the House and Senate on Thursday passed similar tax bills estimated to cost at least $5 billion over five years to allow storm victims to draw funds from retirement accounts without penalty and to extend several housing, job and child tax credits through the disruption. The legislation also offers charitable giving incentives while easing taxes on forgiven debts and unreimbursed business losses.

In deference to local sensibilities, Bush made clear that local officials will dictate how the city is reconstructed, and that a chief aim will be to lure those who fled New Orleans and other Gulf Coast communities to return rather than relocate permanently to the places where they sought refuge. At the same time, he suggested that local authorities would have to revisit zoning laws and building codes "to avoid a repeat of what we've seen" and suggested that sections of New Orleans be rebuilt on "higher ground."

Bush called on Congress to provide property on the federal domain free of charge though a lottery. In exchange, a recipient would be obligated to build a home with a mortgage or help from a charitable organization. He also proposed creation of "worker recovery accounts" of up to $5,000 for evacuees to use for job training, education and child care.

Bush arrived here after an earlier stop in Pascagoula, Miss. The New Orleans he found is a twisted shell of its former self, a once vibrant city that never slept left lifeless by Katrina's fury. Streets remain flooded, piles of garbage line them, and a stench seems to cling to every part of the French Quarter and beyond.

Vickie Johnston, 37, a hairdresser, sneaked into the city Thursday only to learn she had lost everything -- her clothes, furniture, and irreplaceables such as correspondence and photos. She voted for Bush twice but feels betrayed by all government. "They knew New Orleans was a fishbowl. They knew," she said. "Now it's a toilet bowl. How can they do this to us? Why did they let the water get so high?"

In his speech hours later, Bush expressed understanding of such sentiments, acknowledging that the response "at every level of government was not well coordinated and was overwhelmed in the first few days." The lesson he saw was the need for "greater federal authority and a broader role for the armed forces, the institution of our government most capable of massive logistical operations on a moment's notice."

As he did on Tuesday, Bush said he accepts accountability: "Four years after the frightening experience of September 11th, Americans have every right to expect a more effective response in a time of emergency. When the federal government fails to meet such an obligation, I as president am responsible for the problem, and for the solution."

Baker reported from Washington. Staff writer Spencer S. Hsu in Washington contributed to this report.