Not exactly:
[T]he money is NOT going back to the taxpayers or to Katrina [victims]. The money is still being wasted on pork projects by which Alaska has control over. The Senate merely tweaked the language to remove the pressure brought on by the public.
More here. Reason’s Tim Cavanaugh was the first (one of the first?) to suggest funding Katrina relief by deporking the federal transportation reauthorization bill.