A freight railway beside a Gulf Coast beach after a hurricane

Trent Lott, the $700 Million CSX Rail Earmark and Mississippi’s Katrina Spending Fight

The $700 million to move the CSX rail line off the Mississippi Gulf Coast never became law. The Senate kept it in its Katrina and Iraq war spending bill in May 2006. Senate leaders then dropped it before the final $94.5 billion bill, H.R. 4939, was signed on June 15, 2006 as Public Law 109-234. Fights over projects like this one helped bring about a congressional ban on earmarks from 2011. Earmarks came back in 2021 as Community Project Funding in the House and Congressionally Directed Spending in the Senate. They now come with public disclosure, a cap of about 1 percent of discretionary spending and audits by the Government Accountability Office. Lawmakers are still requesting them for fiscal 2027.

The Senate’s Katrina package and the CSX line

On Thursday, May 4, 2006, the Senate passed its version of an emergency supplemental for the Iraq war and hurricane recovery by a vote of 77 to 21. Some outlets reported the vote as 78 to 20. The bill came to about $109 billion. That was well above President George W. Bush’s request of $92.2 billion, plus $2.3 billion for a possible bird flu pandemic. The Senate bill included $65.7 billion for military operations and $28.9 billion for hurricane relief.

The Biloxi Sun Herald highlighted the $28.9 billion in Katrina relief, including the $700 million to move the CSX railroad. Sen. Thad Cochran, R-Miss., then chairman of the Senate Appropriations Committee, and Sen. Trent Lott, R-Miss., said the bill would pay for four things:

  • relocating the CSX rail line
  • replacing the Armed Forces Retirement Home in Gulfport
  • covering uninsured hurricane-related losses at Northrop Grumman Ship Systems
  • replacing damaged voting machines

Other Mississippi money in the Senate-passed bill, as the Sun Herald reported it at the time:

  • Department of Commerce: $10 million to map Mississippi fishing grounds so underwater debris removal could begin. $15 million for the National Marine Fisheries Service to help Mississippi, Louisiana and Alabama restore oyster beds and shrimp grounds. $20 million for the National Oceanic and Atmospheric Administration (NOAA) science center in Pascagoula to finish repairs and reconstruction.
  • Department of Defense: $44.7 million for the Seabees. $103.5 million for Keesler Air Force Base to plan and design construction projects. $5.8 million for the Mississippi Air National Guard in Meridian and Gulfport.
  • NASA: $35 million for Stennis Space Center and the NASA Shared Services Center to cover costs from Hurricane Katrina.
  • Department of Health and Human Services: $6 million for an emergency communications network for Mississippi community health centers. $20 million for mosquito control through the Centers for Disease Control and Prevention.
  • Department of Homeland Security: $103.9 million for the Coast Guard’s shipbuilding program on the Gulf Coast.
  • Department of Labor: $27 million to rebuild the Gulfport Job Corps center.
  • National Park Service: $83 million for historic preservation, with Mississippi expected to receive $37.5 million.
  • Department of Transportation: At least $10 million for the Coast Transit Authority for emergency response and to restore public transportation equipment, facilities and services.

These are Senate-passed figures from May 2006. The House and Senate negotiated the final bill in conference, so the amounts that became law could differ.

What the original PorkBusters post argued

The PorkBusters post that first appeared on this page in 2006 drew a line between two kinds of spending. It called rebuilding the Armed Forces Retirement Home in Gulfport, to bring the veterans home, a worthy goal. It called the money for uninsured hurricane related losses at Northrop Grumman Ship Systems corporate welfare. The author asked why one large contractor’s uninsured losses deserved federal help when many small business owners on the coast were still struggling with uninsured losses of their own.

The post also quoted House Majority Leader John Boehner, R-Ohio. Opponents of the add-ons welcomed his statement: “The House will not take up an emergency supplemental spending bill for Katrina and the war in Iraq that spends one dollar more than what the president asks for. Period.”

The Mississippi Press in Pascagoula took the other side in an editorial: “For the sake of the people of the Mississippi Coast, if the House wants a fight, then we hope the Senate is ready to rumble.” The post’s author replied that $700 million to relocate the CSX line did nothing for the average Gulf Coast resident.

The same paper reported in another article that major rebuilding projects in Ocean Springs could be put on hold for at least 18 months, and that the city would need help from Congress to speed things up. The post argued that the needs of Ocean Springs and most of Jackson County were being passed over. In the author’s view, the rail move mainly served the casinos in Harrison County by taking the tracks away from them. Cochran and Lott described the relocation as part of rebuilding the coast after the storm.

Lott’s response to critics

The post’s author argued that Senator Lott is ignoring all the citizens of Mississippi who opposed spending $700 million to move the railroad. For his part, Lott praised the senators who backed the state’s projects. He said they had taken the time to look at Mississippi’s continued needs after Katrina and cast thoughtful votes, despite efforts by outside groups “to deny our state funding that only the federal government can provide.”

What happened to the rail earmark

The rail money drew criticism from both parties and from watchdog groups. Citizens Against Government Waste and the Heritage Foundation both called it a “railroad to nowhere.” Critics pointed out that CSX had already rebuilt the damaged line after Katrina. The repairs cost at least $250 million, and news reports said insurance covered about 90 percent of that.

Events unfolded in this order:

  1. Senate floor, late April 2006: Sen. Tom Coburn, R-Okla., offered an amendment to strike the $700 million. The Senate voted 50 to 47 to table it, which kept the money in the bill. Cochran beat back two attempts to remove it.
  2. White House, spring 2006: The Office of Management and Budget said it strongly objected to the $700 million. President Bush threatened to veto any bill that went over his request.
  3. May 22, 2006: A budget aide to Senate Majority Leader Bill Frist, R-Tenn., said the earmark would not be in the conference report.
  4. June 15, 2006: President Bush signed H.R. 4939 as P.L. 109-234. The Congressional Research Service put the total at $94.52 billion, about equal to the president’s combined request. The CSX relocation money was not in it.
  5. June 2007: The Federal Highway Administration withdrew its 2003 notice of plans to study the relocation corridor in an environmental impact statement.

The people involved later left Congress. Lott resigned from the Senate in December 2007. Cochran retired in April 2018. Boehner served as Speaker of the House from January 2011 to October 2015.

From the earmark ban to Community Project Funding

Earmarks were banned from 2011 to 2021. When Republicans took the House majority in the 112th Congress (2011 to 2012), they adopted an earmark moratorium through party rules and committee practice rather than formal House rules. The Senate followed in practice. In February 2021, House Appropriations Chair Rosa DeLauro, D-Conn., brought earmarks back under a new name, Community Project Funding. The Senate calls its version Congressionally Directed Spending.

The rules today differ from those of the 2006 era in several ways:

Feature 2006 era Since 2021
Name Earmarks Community Project Funding (House), Congressionally Directed Spending (Senate)
Overall limit None About 1% of discretionary spending
Disclosure Limited until 2007 reforms Members post every request online
Recipients Included private companies House limits recipients to public entities and nonprofits
Oversight Little GAO audits a sample of funded projects
Conflicts Few certification rules Members certify they have no financial interest

Earmarks are still in use as of November 2026, and they still draw criticism. Citizens Against Government Waste counted about $23.7 billion in fiscal 2026 earmarks in its 2026 Congressional Pig Book, using its own broader definition. For fiscal 2027, House members could submit up to 20 Community Project Funding requests each. Punchbowl News reported on November 2, 2026 that the House Republicans’ fiscal 2027 bills set aside $8.2 billion for these projects. None of the 12 regular fiscal 2027 bills had been enacted. The government is running on a stopgap, P.L. 119-103, that keeps agencies at fiscal 2026 levels through December 11, 2026. Under a continuing resolution, new fiscal 2027 earmarks are not funded. Whether they survive depends on what Congress does with the full-year bills.

FAQ

Did Mississippi get the $700 million to move the CSX railroad?

No. The Senate kept the money in its bill in May 2006 after a 50 to 47 vote to table Sen. Tom Coburn’s amendment to strike it. Senate leaders dropped it before the conference report. The final law, P.L. 109-234, did not include it.

How much Katrina money was in the 2006 supplemental?

The Senate-passed version had $28.9 billion for hurricane relief inside a bill of about $109 billion. The final law totaled $94.52 billion for war and hurricane needs combined, according to the Congressional Research Service. That was close to President Bush’s combined request.

Why were earmarks banned in 2011?

House Republicans adopted a moratorium when they took the majority in 2011. This followed years of public criticism of projects like the Alaska “bridge to nowhere” and the Mississippi rail relocation. The ban rested on party and committee rules, not on a law. Senate appropriators followed it in practice.

Are earmarks legal now?

Yes. Since 2021 they have been allowed as Community Project Funding in the House and Congressionally Directed Spending in the Senate. Requests are posted online, members must certify they have no financial interest, total spending is capped at about 1 percent of discretionary spending, and GAO audits a sample of projects.

How can you see which projects your member of Congress requested?

Every House member who requests Community Project Funding posts the list on their official website. The House and Senate Appropriations Committees publish tables of funded projects with each bill. Once money is spent, USAspending.gov shows the grants and their recipients.

What happens to fiscal 2027 earmarks if Congress passes another stopgap?

A continuing resolution funds agencies at the previous year’s levels and does not carry new earmarks. Fiscal 2027 projects become law only if Congress enacts full-year appropriations bills or an omnibus that includes them. The current stopgap runs through December 11, 2026.

Sources

  • Public Law 109-234, Emergency Supplemental Appropriations Act, 2006 (GovInfo)
  • CRS Report RL33226 on FY2006 supplemental appropriations (EveryCRSReport)
  • OMB Statement of Administration Policy on H.R. 4939
  • H.R. 9770, Continuing Appropriations Act, 2027 (Congress.gov)
  • CRS Appropriations Status Table: FY2027 (Congress.gov)
  • FY 2026 Congressionally Directed Spending (Senate Appropriations Committee)

About this article

Written by PB Spending Watch editors

The editorial team of PB Spending Watch.

  • Fact-checked before publication.
  • Published · Updated

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