(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today supported Senator Tom Coburn’s (R-Okla.) provision to strike a $500 million earmark for Northrop Grumman for “business disruption” caused by Hurricane Katrina.  The funds are included in the Emergency Supplemental Appropriations Act of 2006 (H.R. 4939). 

“By introducing this amendment, Senator Coburn has once again shown his fierce opposition to government waste and corporate welfare,” CCAGW President Tom Schatz said.  “Larding up the emergency spending bills hurts the economy and reconstruction efforts.”

Senator Thad Cochran (R-Miss.) introduced this earmark despite the fact that Northrop Grumman is currently in litigation with its private insurer to recoup the funds lost due to the hurricane.  According to Northrop Grumman’s latest report to the Securities and Exchange Commission, company profits in the latest quarter were $358 million, while its revenues were more than $7 billion.

The Defense Contract Management Agency (DCMA) opposes the earmark, stating “It would be inappropriate to allow Northrop Grumman to bill costs potentially recoverable by insurance because payment by the Government may otherwise relieve the carrier from their policy obligation.”

“With a $371 billion deficit, the federal government needs to prioritize where and how federal tax dollars are spent, particularly in legislation intended for emergencies.” Schatz concluded.

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.