Water Recedes In Flooded Nevada Town

Receding flood waters and promises of help cheered residents of Fernley where hundreds of homes were inundated when a canal broke, but full-scale federal aid to people with damaged homes appears uncertain.

Michael Karl of the Federal Emergency Management Agency says a
possible federal disaster declaration that would allow for grants and low-interest loans to flood victims isn't a "slam dunk."

Karl toured the neighborhood today, along with Nevada U.S. Senator Harry Reid and other officials.

Governor Jim Gibbons on Saturday declared a state of emergency, the first step toward a possible federal designation.

The Nevada Division of Emergency Management this weekend estimated 290 homes had varying degrees of flood damage.

But Karl put the number at 200, and said half of those had major damage.

Reid said the levee break shows a need to improve the nation's aging infrastructure, and pledged funding to improve the century-old earthen canal.