Tag Archives: Puerto Rico aid

Judge rejects bid to block end of aid to Hurricane Maria evacuees

FILE PHOTO: Ysamar Figueroa carrying her son Saniel, looks at the damage in the neighbourhood after the area was hit by Hurricane Maria, in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins/File Photo

BOSTON (Reuters) – A federal judge on Thursday rejected a request to block the U.S. government from cutting off aid to hundreds of Puerto Rican families who fled the hurricane-ravaged island in 2017 and are living in hotels and motels across the United States.

But U.S. District Judge Timothy Hillman in Worcester, Massachusetts, ordered the government to continue providing assistance to people who were forced to leave their homes because of Hurricane Maria until Sept. 13 so they could prepare.

Lawyers for a group of Puerto Ricans pursuing the lawsuit had argued that the Federal Emergency Management Agency’s (FEMA) decision to terminate aid violated their due process rights and contended that they being discriminated against.

But Hillman said they were unlikely to succeed on the merits of their claims and rejected their request for an injunction that would require FEMA to continue providing aid to evacuees until they obtained temporary or permanent housing.

FILE PHOTO: A broken traffic light, a street sign and branches lie on the street after the area was hit by Hurricane Maria, in San Juan, Puerto Rico September 22, 2017. Picture taken September 22, 2017. REUTERS/Alvin Baez/File Photo

FILE PHOTO: A broken traffic light, a street sign and branches lie on the street after the area was hit by Hurricane Maria, in San Juan, Puerto Rico September 22, 2017. Picture taken September 22, 2017. REUTERS/Alvin Baez/File Photo

“While this is the result that I am compelled to find, it is not necessarily the right result,” Hillman wrote.

He said he could not required FEMA “to do that which in a humanitarian and caring world should be done,” but could only order it to do what the law requires.

Hurricane Maria struck Puerto Rico with winds close to 150 miles per hour (240 km per hour) on Sept. 20, causing an estimated $90 billion in damage to the already economically struggling U.S. territory.

On Tuesday, the official death toll from Maria, the most powerful storm to hit the Caribbean island in almost a century, was raised to nearly 3,000.

According to FEMA, 1,044 families displaced by Maria as of Wednesday were receiving aid under a program that pays for hotel lodging. Since its launch the program in total has helped 7,032 families displaced by Maria, FEMA said.

(Reporting by Nate Raymond in Boston; Editing by Chizu Nomiyama and Jeffrey Benkoe)

Puerto Rico asks Congress for help with delayed disaster relief loan

A woman waits as municipal workers distribute water and ice provided by the U.S. Federal Emergency Management Agency (FEMA), after Hurricane Maria hit the island in September 2017, in Comerio, Puerto Rico January 31, 2018. Picture taken January 31, 2018. REUTERS/Alvin Baez

By Hilary Russ

NEW YORK (Reuters) – The U.S. Treasury has delayed a $4.7 billion post-hurricane loan to Puerto Rico and reduced the amount by more than half, and the resulting financial strain threatens to disrupt essential services, the island’s governor said in a letter asking U.S. congressional leaders to intervene.

Congress approved the community disaster loan in October as part of a larger relief package after hurricanes Harvey, Irma and Maria devastated the island, which was already dealing with the largest government bankruptcy in U.S. history.

But four months later, the U.S. territory still has not received the loan. Last week, the Treasury said it wanted to shrink the amount to $2.065 billion and impose special terms and conditions, according to Governor Ricardo Rossello’s letter, dated Feb. 26.

The Puerto Rico government “may be forced to cut deeply into its liquidity reserves and make the untenable choice of which essential services to cut so that it can maintain other essential services,” Rossello wrote.

The risk of interruption to the island’s electric, water, sewer or other utilities is a direct result of Treasury’s “misguided delay and policy decisions,” he said.

Hurricane Maria, Puerto Rico’s worst natural disaster in nine decades, hit as the island was trudging through an unprecedented economic crisis.

The island declared a form of bankruptcy last May, shouldering some $120 billion in combined bond and pension debt.

Community disaster loans – which are usually forgiven – are just one form of disaster relief. The island’s latest fiscal recovery plan assumes $49.1 billion of federal disaster aid altogether.

The Treasury “intimated that the loans will not be forgiven under any circumstance” and focused more on repayment than on relief for the island’s residents, Rossello’s letter said.

The delayed federal loan has also forced the island’s government “to rely on its own limited liquidity to fund an emergency loan to the Puerto Rico Electric Power Authority,” or PREPA, Rossello’s letter said.

The strained electric utility will need yet another cash infusion in the next 30 to 45 days, he said.

Officials from the Treasury Department and other agencies met on Monday with the Puerto Rico Financial Oversight and Management Board to discuss terms under which the U.S. government will offer community disaster loans to Puerto Rico, Treasury said in a statement.

It said the conditions would include “important steps that will be taken to protect federal taxpayer investments while ensuring funding is available quickly when needed.”

The Treasury Department said Puerto Rico could use the money to make loans to PREPA and other public corporations.

(Reporting by Hilary Russ in New York; Additional reporting by Roberta Rampton in Washington; Editing by James Dalgleish and Lisa Shumaker)