NEW ORLEANS — President Bush returned to the storm-battered Gulf Coast yesterday, telling local leaders that there are promising signs of recovery from the rampant devastation of Hurricane Katrina.

Bush, who has faced harsh criticism for a confused and sluggish federal response to the deadly hurricane, said he was "pleased to see the progress being made on the ground."

Bush's trip marked his fifth visit to the area since Katrina flattened much of the Mississippi Gulf Coast and unleashed a flood that submerged most of New Orleans. While floodwaters are being pumped away, much of the city and surrounding area remain uninhabitable and crusted in dried mud.

The ineffective federal response to Katrina has shaken public confidence in an administration that prides itself on its cool efficiency. Bush's approval ratings have plummeted to new lows, and polls have found a dwindling share of Americans give him high marks for leadership.

Bush yesterday toured a Folgers coffee plant, where 110 trailers are lined up to house workers who have returned to the job. Plant officials said 150 of the facility's 500 workers are back to work and that one of the plant's 10 lines was working to package and ship coffee throughout the country.

"We've got some people working here because of the ingenuity of the plant managers," Bush said. "... This company has provided housing for the folks who work here."

Bush earlier stopped in Gulfport, Miss., where he met with members of a state commission appointed to lead the storm-recovery effort. The meeting was held in a white tent set up in the parking lot of a still-shuttered outlet mall.

As Bush entered the tent, the business leaders and others inside applauded. "W, we still love ya," someone cried out, causing Bush to smile.

Bush listened quietly as Republican Gov. Haley Barbour pledged to make Mississippi's Gulf Coast better than ever. "Creating a renaissance in this area is what I'm going to do the rest of the time I'm in office," Barbour said.

Bush also heard testimonials from business leaders who pledged to help rebuild the coastline.

"Every time I come back here, I see progress," Bush said. "... This part of the country is changing. You're moving forward."

Gregoire joins call for probe of oil firms

MADISON, Wis. — Eight Democratic governors, including Washington's Gov. Christine Gregoire, asked President Bush and congressional leaders yesterday to investigate possible gasoline price gouging in the aftermath of Hurricane Katrina.

In a letter, the governors urged an investigation into "excessive profits being made by oil companies who are taking advantage of this national crisis."

The letter was signed by Gregoire and the governors of Oregon, Wisconsin, Michigan, Illinois, New Mexico, Iowa and Montana. It also urged Congress to refund any excessive profits to consumers.

Tax-break package would aid victims

WASHINGTON — House and Senate tax writers yesterday agreed on a package of tax breaks designed to help Hurricane Katrina victims.

The Congressional Research Service, which provides lawmakers with nonpartisan analysis, said some of the tax breaks would do more for higher-income survivors than for the neediest.

House and Senate tax writers agreed on a tax bill that would waive penalties if Katrina victims tap retirement-savings accounts before retirement. Other provisions let taxpayers write off more of their destroyed property and erase taxes regularly imposed when a debt, such as a mortgage, is forgiven.

The bill, expected to pass quickly, would include a two-year tax credit for businesses hiring people within the disaster area. Those who take in evacuees, other than family members, would be eligible for a $500 personal exemption.

The Congressional Research Service report said some elements of the tax assistance would do more for wealthier taxpayers because many lower-income individuals and families pay little tax. Lower-income survivors also are less likely to have retirement accounts.

The same measure, however, includes assistance specifically for lower-income families that would help the working poor retain income-tax credits, which can be disrupted by unemployment or family separation.

ALSO

Casualties: Hurricane Katrina's death toll was unchanged yesterday at 973 deaths, including 736 in Louisiana.

Missing children: Authorities trying to find more than 2,600 children in Louisiana, Mississippi and Georgia think most are not really "missing." Rather, authorities said, the vast majority of these children were separated from a parent or guardian during the rush to rescue hurricane victims.

More flights: American Airlines said yesterday it will resume limited flights in and out of New Orleans' Louis Armstrong Airport today.

Compiled from The Washington Post, The Associated Press and Reuters