The Federal Emergency Management Agency has revoked a controversial clause that would have forced hospitals, museums, schools, and other charities to pay millions of dollars the next time a natural disaster struck New Orleans, reports The Times-Picayune.

A memo on FEMA’s Web site in June prompted anger when the agency revealed plans to force nonprofit groups to pay their own deductibles on disaster insurance. Those groups normally get assistance from the federal government, and many groups said they could not afford to cover insurance otherwise, especially because the cost of policies in Louisiana has spiked since Hurricane Katrina.

Read The Chronicle’s coverage of disaster-relief efforts in New Orleans and Mississippi after Hurricane Katrina. (A paid subscription or temporary pass is required to view Chronicle articles.)