A new government report shows $700 million of Hurricane Katrina relief funds are missing or misspent.
The Road Home Program awarded grants up to $30,000 to homeowners to help elevate, renovate, or rebuild their homes.
But the Housing and Urban Development Department's inspector general study shows many used the money for something else.
HUD officials say the state of Louisiana is responsible for making sure the money was spent properly.
According to the report, "the state did not have conclusive evidence" that $698.5 million was spent on expected repairs.
HUD is now pressing Louisiana to recover the money.
Meanwhile, Sen. Tom Coburn, R-Okla., is pushing to make sure the same mistake doesn't happen with government aid to the victims of Superstorm Sandy.
"I commend HUD for discovering that millions of dollars that were intended to elevate homes along the Gulf Coast were either pocketed or squandered," Coburn said.
"As the federal government prepares to spend nearly $16 billion on recovery efforts related to Sandy, this is a mistake taxpayers and citizens affected by the storm can't afford to see repeated," he said.