[News] Trump Administration Tells Puerto Rico It’s Too Rich for Aid Money
Anti-Imperialist News
news at freedomarchives.org
Thu Jan 18 16:44:17 EST 2018
https://theintercept.com/2018/01/18/puerto-rico-trump-administration-tells-its-too-rich-for-aid-money/
Trump Administration Tells Puerto Rico It’s Too Rich for Aid Money
David Dayen <https://theintercept.com/staff/davidd/>- January 18 2018
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_Means testing has_ now come to disaster aid — and it only applies to
Puerto Rico.
When Congress passed a $36.5 billion disaster relief bill to bolster
rebuilding efforts in several wildfire and hurricane-damaged areas in
October, it shortchanged Puerto Rico, giving it a $4.9 billion loan
<https://theintercept.com/2017/10/11/puerto-rico-relief-bill-cancels-16-billion-in-debt-but-not-for-puerto-rico/> instead
of the grant that other areas received. Now, it appears the debt- and
hurricane-ravaged island won’t even get that money.
First reported in El Nuevo Dia
<https://www.elnuevodia.com/negocios/economia/nota/femainformaqueporahoranodesembolsaraelprestamoquepidiolaisla-2390712/>,
Puerto Rico’s daily newspaper, the Federal Emergency Management Agency
and the Treasury Department informed the Puerto Rican government on
January 9 that they will not disburse the loan
<http://abcnews.go.com/International/wireStory/us-withholds-hurricane-emergency-loan-sought-puerto-rico-52416376>through
the Community Disaster Loans Program, after finding that Puerto Rico had
a cash balance on December 29 of last year of $1.7 billion for ongoing
operations. The letter also cited $6.875 billion scattered in various
local government accounts. Since the loan was intended to fill in a gap
in day-to-day funding, FEMA determined Puerto Rico does not need the
money at this time.
“Funds will be provided through the CDL Program when the Commonwealth’s
central cash balance decreases to a certain level,” wrote FEMA official
Alex Amparo and Deputy Assistant Treasury Secretary Gary Grippo. They
didn’t specify that level but added that municipalities could also apply
for loans.
There’s no question that the Puerto Rican government has lacked fiscal
transparency. But the very fact that Puerto Rico must receive assistance
as loans rather than grants, unlike any other entity receiving disaster
assistance, is bad enough. That the island is being treated like a
welfare recipient found to have too much money in its bank account takes
it to another level. Among U.S. territories suffering from catastrophe,
only Puerto Rico is being means-tested.
“Puerto Rican working families continue to be treated as second-class
citizens by the Trump administration and Congress,” said Héctor
Figueroa, president of the Service Employees International Union’s Local
32BJ, in a statement. “Despite being unable to carry out many vital
functions, Puerto Rico is deemed by these federal agencies as not poor
enough to qualify for emergency loans.”
The Puerto Rican government has asserted that its state-run power and
sewer companies will exhaust funding this month. Nearly half of the
island’s citizens remain without power. With FEMA and the Treasury
refusing to release government-approved loans, it’ll be difficult for
the Puerto Rican government to float money to the power and sewer companies.
The congressional assistance had to be tied to a specific purpose, like
ongoing day-to-day management, only because it was offered as a loan.
The October disaster relief bill also allocated $13.58 billion to FEMA’s
regular disaster relief fund, but Puerto Rico is competing for that
money against Florida, Texas, and the U.S. Virgin Islands, which
all experienced damage in violent summer hurricanes.
A more recent $81 billion disaster relief bill
<https://www.bloomberg.com/news/articles/2017-12-18/house-gop-is-said-to-agree-on-81-billion-in-disaster-spending>passed
by the House in December also split its aid between Florida, Texas,
Puerto Rico, the Virgin Islands, and California, for the recent
wildfires. In the debate over the bill, Puerto Rico was denied
<https://www.politico.com/story/2017/12/23/puerto-rico-disaster-aid-medicaid-315974>
$4.6 billion to boost its Medicaid program, which has long suffered from
inequities, receiving less in matching funds than U.S. states. The bill
has languished in the Senate
<https://www.politico.com/story/2017/12/21/house-passes-massive-disaster-aid-package-312413>,
where Democrats want the Medicaid funding included.
Puerto Rican officials have said Medicaid funding will run out early
this year without the increased funding. Though this would seem to fit
the definition of ongoing operations covered in the CDL program, FEMA
and the Treasury did not reference Medicaid in their letter.
Puerto Rico also took a hit from
<https://theintercept.com/2017/12/13/gop-tax-plan-could-devastate-puerto-ricos-manufacturing-sector-with-one-line/>
the Tax Cuts and Jobs Act, the Republican overhaul of the tax code,
which treats manufacturing operations on the island like they’re in a
foreign country, subject to a large export tax. Democrats want that
rolled back in the next disaster supplemental as well. As The Intercept
has reported, utility workers restoring power in Puerto Rico have
alleged that the Army Corps of Engineers is hoarding supplies
<https://theintercept.com/2018/01/16/puerto-rico-utility-workers-charge-that-federal-government-is-hoarding-reconstruction-supplies/>that
could be used in the reconstruction effort. So FEMA and the Treasury’s
decision fits with a recent history of smacking Puerto Rico while it’s down.
“Our federal government is telling 3.3 million Puerto Ricans that
exercising its colonial power is more important than the survival of
Puerto Rico’s people,” Figueroa of SEIU said.
Top photo: A local resident cleans debris near his damaged home in an
area without electricity on Oct. 15, 2017 in San Isidro, Puerto Rico.
Puerto Rico is suffering shortages of food and water in many areas and
only 15 percent of grid electricity has been restored. Puerto Rico
experienced widespread damage including most of the electrical, gas, and
water grid, as well as agriculture after Hurricane Maria, a category 4
hurricane, swept through.
--
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