Labor Secretary Elaine Chao said the funds -- beginning with an initial release of $20.7 million -- would provide jobs in the recovery and clean-up efforts in the aftermath of the storm.
"This grant will ... create temporary jobs that will mean paychecks for thousands of dislocated workers and will help to clean-up, rebuild and repair their communities," said Chao.
The grant was made to the Louisiana Department of Labor. It is to be used for demolition, renovation and reconstruction of destroyed public structures, facilities and lands.
The Labor Department said the funds would support projects that provide food, clothing, shelter and other humanitarian assistance for people affected by the disaster. The funds will also be used to work on the homes of economically disadvantaged people who are eligible for the federally-funded weatherization program -- with priority given to services for the elderly and the disabled.