Storm Hit Little, but Aid Flowed to Inland City

By ERIC LIPTON

JACKSON, Miss., Nov. 19 - When the federal government and the nation's largest disaster relief group reached out a helping hand after Hurricane Katrina blew through here, tens of thousands of people grabbed it.

But in giving out $62 million in aid, the Federal Emergency Management Agency and the American Red Cross overlooked a critical fact: the storm was hardly catastrophic here, 160 miles from the coast. The only damage sustained by most of the nearly 30,000 households receiving aid was spoiled food in the freezer.

The fact that at least some relief money has gone to those perceived as greedy, not needy, has set off recriminations in this poor, historic capital where the payments of up to $2,358 set off spending sprees on jewelry, guns and electronics.