Levee repair is in the hands of the Army Corps of Engineers and the Federal Government. Completion has been side-tracked.

Costs have skyrocketed, and the Federal Government has scaled back.

A two-year-old article gives the sad news. "The change [cost] followed a surprise announcement from the Army Corps of Engineers that the levee reconstruction project, most recently estimated at $3.5 billion, would now cost $9.5 billion if insurance-certified levees were extended throughout the region." -2006 article, costs even higher now.
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/30/AR200633001912.html

"The news shattered the fragile relationship between Washington officials and Louisiana leaders, who have assumed that the rebuilding effort would cover the entire New Orleans area."
Melancon (D-LA) said he wondered whether the changes reflected the comments made by White House officials such as House Speaker [no longer] J. Dennis Haster (R-IL) after the storm questioning the wisdom of rebuilding the low-lying city."

New Orleans is just as vulnerable to a big storm now as it was before Katrina.
The Bush government has turned its back on the region.