Bush says funds available for Midwest floods

WASHINGTON (Reuters) - President George W. Bush on Tuesday said there was enough money in a government relief fund to handle the flooding disaster in the Midwest and he planned to go to Iowa this week to review the damage.

On his first day back from a trip to Europe, Bush said the government had enough money in its Disaster Relief Fund to handle the problems caused by the worst flooding in the region in 15 years. It has pushed corn prices to record highs on fears of crop losses in the heart of the world's top grain exporter.

Since the widely criticized response to Hurricane Katrina in 2005, Bush and his administration have taken great care to show that they are doing everything to cope with natural disasters.

Bush told reporters his administration would set up a housing task force to work with state and local authorities to help victims return to their homes, and that the government stood ready to help farmers and ranchers with federal aid.

The Disaster Relief Fund, which provides aid after the president declares a disaster area, had sufficient money to take care of the current situation, but the administration would request additional funds to ensure adequate reserves in case of new emergencies this year, Bush said.

Congress is likely to pass additional funds this month.

The Disaster Relief Fund has about $4 billion, government aides said.

"I, unfortunately, have been to too many disasters as president," Bush told reporters. "But one thing I've always learned is that the American citizen can overcome these disasters."

(Reporting by Tabassum Zakaria and Richard Cowan; Editing by David Storey and Sandra Maler)