The head of the U.S. foreign aid agency has warned that the cost of rebuilding from Hurricane Katrina may reduce available funds for international assistance.

Administrator of the U.S. Agency for International Development, Andrew Natsios, said he discussed the issue with foreign diplomats Thursday on the sidelines of the U.N. General Assembly meeting. He told reporters that Washington is trying to lower the expectations of some governments, which have been calling for aid increases.

But Mr. Natsios said Washington will maintain its commitment to helping failed states that U.S. officials fear could become havens for international terrorists.

Congress has already approved $62 billion for hurricane recovery efforts, and may be asked to authorize more next month.

Some information provided by AP.