<html>
<head>
<meta http-equiv="content-type" content="text/html; charset=utf-8">
</head>
<body text="#000000" bgcolor="#FFFFFF">
<div id="container" class="container font-size5 content-width3">
<div id="reader-header" class="header" style="display: block;"> <font
size="-2"><a id="reader-domain" class="domain"
href="https://theintercept.com/2018/01/18/puerto-rico-trump-administration-tells-its-too-rich-for-aid-money/">https://theintercept.com/2018/01/18/puerto-rico-trump-administration-tells-its-too-rich-for-aid-money/</a></font>
<h1 id="reader-title">Trump Administration Tells Puerto Rico
It’s Too Rich for Aid Money</h1>
<div class="PostByline-names" data-reactid="154"><a
class="PostByline-link" rel="author"
href="https://theintercept.com/staff/davidd/"
data-reactid="155"><span itemprop="name" data-reactid="156">David
Dayen</span></a><span class="PostByline-date"
data-reactid="158"> - January 18 2018</span></div>
</div>
<hr>
<div class="content">
<div id="moz-reader-content" class="line-height4"
style="display: block;">
<div id="readability-page-1" class="page">
<div class="PostContent">
<div>
<p><u>Means testing has</u> now come to disaster aid —
and it only applies to Puerto Rico.</p>
<p><span>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 </span><a
href="https://theintercept.com/2017/10/11/puerto-rico-relief-bill-cancels-16-billion-in-debt-but-not-for-puerto-rico/"><span>$4.9
billion loan</span></a><span> instead of the grant
that other areas received. Now, it appears the debt-
and hurricane-ravaged island won’t even
get that money.</span></p>
<p><span>First reported in </span><a
href="https://www.elnuevodia.com/negocios/economia/nota/femainformaqueporahoranodesembolsaraelprestamoquepidiolaisla-2390712/"><span>El
Nuevo Dia</span></a><span>, Puerto Rico’s daily
newspaper, the Federal Emergency Management Agency
and the Treasury Department informed the Puerto
Rican government on January 9 that they </span><a
href="http://abcnews.go.com/International/wireStory/us-withholds-hurricane-emergency-loan-sought-puerto-rico-52416376"><span>will
not disburse the loan</span></a><span> 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. </span></p>
<p>“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.</p>
<p>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.</p>
<p><span>“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.”</span></p>
<p><span>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.</span></p>
<p>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.</p>
<p><span>A more recent </span><a
href="https://www.bloomberg.com/news/articles/2017-12-18/house-gop-is-said-to-agree-on-81-billion-in-disaster-spending"><span>$81
billion disaster relief bill</span></a><span>
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 <a
href="https://www.politico.com/story/2017/12/23/puerto-rico-disaster-aid-medicaid-315974">was
denied</a> </span><span>$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 </span><a
href="https://www.politico.com/story/2017/12/21/house-passes-massive-disaster-aid-package-312413"><span>languished
in the Senate</span></a><span>, where Democrats
want the Medicaid funding included.</span></p>
<p><span>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. </span></p>
<p><span>Puerto Rico <a
href="https://theintercept.com/2017/12/13/gop-tax-plan-could-devastate-puerto-ricos-manufacturing-sector-with-one-line/">also
took a hit from</a> 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 </span><a
href="https://theintercept.com/2018/01/16/puerto-rico-utility-workers-charge-that-federal-government-is-hoarding-reconstruction-supplies/"><span>hoarding
supplies</span></a><span> 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.</span></p>
<p>“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.</p>
<p class="caption">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.</p>
</div>
</div>
</div>
</div>
</div>
<div> </div>
</div>
<div class="moz-signature">-- <br>
Freedom Archives
522 Valencia Street
San Francisco, CA 94110
415 863.9977
<a class="moz-txt-link-freetext" href="https://freedomarchives.org/">https://freedomarchives.org/</a>
</div>
</body>
</html>