A report released Thursday by the Senate Natural Disaster Recovery subcommittee says FEMA is still not prepared to handle the housing needs of millions if another disaster like Hurricane Katrina hits the United States.

The committee spent six months looking at FEMA's natural disaster housing policies and concluded that the new administration needs to look at overhauling the agency.

"Had they been more flexible in their regulations, they could have been a great deal more assistance than they were," said Louisiana Sen. Mary Landrieu. "So, the first thing I think the secretary needs to do is fire most of the lawyers at FEMA or really give them a thorough review."

Landrieu says taxpayers are still paying for FEMA's mistakes four years after hurricanes Katrina and Rita hit the Gulf Coast.

FEMA officials say they have not yet seen the report, but they admit post-disaster housing still remains a challenge for the agency.