Hurricane Katrina dramatically altered the level of social and environmental stressors for the residents of the New Orleans area. The Family Stress Model describes a process whereby felt financial strain undermines parents' mental health, the quality of family relationships, and child adjustment. Our study considered the extent to which the Family Stress Model explained toddler-aged adjustment among Hurricane Katrina affected and nonaffected families. Two groups of very low-income mothers and their 2-year-old children participated (pre-Katrina, n = 55; post-Katrina, n = 47). Consistent with the Family Stress Model, financial strain and neighborhood violence were associated with higher levels of mothers' depressed mood; depressed mood was linked to less parenting efficacy. Poor parenting efficacy was associated to more child internalizing and externalizing problems.By some estimates, Hurricane Katrina is the most expensive natural disaster ever to affect the United States (Bacon, 2005). The financial, psychological, and emotional toll of Hurricane Katrina on the lives of residents in the Gulf Coast is unprecedented. Although the damage inflicted by Hurricane Katrina did not discriminate by socioeconomic status, impoverished families may be at heightened risk for experiencing more difficulty recovering from Hurricane Katrina than their more affluent counterparts. Impoverished families have fewer financial reserves from which to draw during times of need and the increased cost demands associated with recovery may be overly taxing for low-income families. According to the Family Stress Model, felt economic pressure increases children's risk for problem behaviors indirectly by increasing parents' psychological distress and disrupting family relationships (Conger & Elder, 1994). Thus, although families residing in the New Orleans area may experience more economic strain since Hurricane Katrina, children of impoverished families may be at heightened risk for experiencing adjustment problems because of the psychological effects of severe economic strain on their parents. Alternatively, the experience of Hurricane Katrina might invalidate the Family Stress Model in that the psychological stress associated with experiencing the disaster, rather than perceived economic hardship, may influence parental depression and anxiety levels as well as levels of child problem behavior.Correspondence should be addressed to Laura V. Scaramella, Associate Professor of Psychology, Psychology, University of New Orleans, GP 2001, New Orleans, LA 70148. lscarame@uno.edu. Publisher's Disclaimer: Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article maybe used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express or implied or make any representation that the co...