HUD OKs Diverting Katrina Housing Funds

The governor of Mississippi has declared that he is diverting $600 million in housing funds to the port of Gulfport. That's a lot of money, and I don't recall Gulfport being much more than a marina. HUD was called in but claimed it was powerless to do anything about this diversion of funds. I wonder why $600 million in housing money is still sitting around two and a half years after Katrina: HUD OKs Diverting Katrina Housing Funds