Hi Carol. I haven't gotten this warning---surprised because I get so many of the "pass on or else" emails! I don't know much about the processess' mulch must go through to make sure it is safe for us and plants. But I would think that there would be a high risk of contamination. Would'nt it have to be tested and irradicated before they could market it? I guess it would depend on the source of the mulch. I'm thinking that testing and processing would be costly so I don't see how it can be cheap and 100% safe.
Dawn

this is what I received from our extension office :
Formosan subterranean termites and mulch from Louisiana following
hurricanes Katrina and Rita
A question has arisen about Formosan subterranean termites being moved
in mulch from New Orleans and Louisiana following hurricanes Katrina and
Rita. It is true that there is a lot of cellulose debris (wood, paper
and their products) in Louisiana following these two hurricanes.
Something has to be done with this debris. Yes, Formosan subterranean
termites are found in the parishes affected by the hurricanes and will
get in mulch. They also eat the centers of live trees. See the LSU
AgCenter Web site for information on the biology and ecology of this
insect. However, the Louisiana Department of Agriculture and Forestry
(LDAF) in Louisiana imposed a quarantine for the Formosan subterranean
termite on October 3, 2005, in Calcasieu, Cameron, Jefferson, Jefferson
Davis, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the
Baptist, St. Tammany, Tangipahoa and Washington parishes (the parishes
affected by the hurricanes).
Thus, efforts are in place to prevent the spread of the Formosan
subterranean termite in mulch or other materials. Additionally, the
insect may be managed using integrated pest management.
Provisions of the quarantine imposed by the LDAF include:
* Movement of wood or cellulose material is prohibited unless
either (1) it is fumigated or treated for Formosan subterranean termites
and is approved for movement by the commissioner or his designee(s) or
(2) written authorization is given by the commissioner or his
designee(s) for the movement of untreated wood or cellulose material
from the quarantined parishes.
* Temporary housing cannot be moved from the named parishes until
written authorization is given by the commissioner or his designee(s).
* All architectural components (beams, doors and salvaged wood)
cannot be sold or placed in any structure in any parish until the
architectural components are fumigated or treated for Formosan
subterranean termites.
* Additionally, it is strongly recommended and urged that all new
construction and reconstruction of structures in the quarantined
parishes use termite-resistant materials. Termite-resistant materials
include pressure-treated wood (borates, ammonical copper quat or copper
azole) or non-cellulose materials.
The quarantine is in effect until it is rescinded by the commissioner of
agriculture. If a waiver of a requirement or an authorization to carry
out one of the prohibited acts is granted, it does not rescind or modify
the quarantine.

It's a hoax.

Here is a link that might be useful: internet hoaxes

Glad to see that the Snopes.com site has declared this a hoax. When I first checked they hadn't made up their minds. There is very little information anywhere else about the specific topic. You can research Formosan termite and New Orleans but the Snopes.com information is the most complete.
Carol