New Orleans , Louisiana ( CNN ) -- U.S. Sen. Mary Landrieu will hold a late-morning hearing Thursday about the lessons learned and the progress made in the five years since Hurricane Katrina devastated New Orleans and large sections of the Gulf coast . The hearing in Chalmette , Louisiana , will highlight the continuing challenges facing the state . On Wednesday , Landrieu announced that Washington will award $ 1.8 billion to schools in New Orleans . A provision in an appropriations bill authorizes the Federal Emergency Management Agency to provide a lump-sum payment for K-12 schools damaged by hurricanes Katrina and Rita . `` The provision also reduced penalties for insufficient flood insurance and alternate projects , which yielded more than $ 500 million in savings for Louisiana schools , '' Landrieu 's office said in a statement . `` This $ 1.8 billion lump sum settlement is one of the great victories in our fight for a smarter recovery , '' Landrieu said . `` It was a battle worth waging and while we would have liked to have received the money sooner , it was worth the wait . This lump sum approach is a much wiser investment of taxpayer dollars and should serve as a model for the right way to rebuild communities following a major disaster . '' New Orleans schools are still rebounding five years after Katrina struck . The money gives `` local leaders the ability to rebuild New Orleans ' school system in a comprehensive and strategic manner , instead of using a uncoordinated and piecemeal approach , '' Landrieu 's statement said .
The hearing will highlight the continuing challenges facing Louisiana . Schools will receive $ 1.8 billion lump-sum payment . In a statement, Jindal said he was "pleased to see that we have reached an agreement with our teachers and school employees on this important issue."