The U.S. Treasury has delayed, cut in half, and imposed special conditions on the post-hurricane loan that Puerto Rico was supposed to receive from the U.S. government, Gov. Ricardo Rossello complained in a letter to congressional leadership on Tuesday.
“The damage and devastation from Hurricanes Irma and Maria left no doubt that Puerto Rico was in desperate need of federal assistance to restore and maintain essential services for the Island’s 3.4 million residents,” Rossello wrote.
Comparto carta enviada al liderato del Congreso. pic.twitter.com/1H9KAG81DJ
— Ricardo Rossello (@ricardorossello) February 27, 2018
Four months after the community development loan was approved by Congress, the island has still not received the money. Rossello said in his letter to congressional leadership that the Treasury told him last week it wanted to cut the aid fund from $4.9 billion to $2.065 billion and impose special terms and conditions.
Despite Puerto Rico’s complaint, however, the $4.7 billion Congress approved for the community development loan was intended to be divided as needed between Texas, Florida, the Virgin Islands, and Puerto Rico, all areas that were ravaged by the hurricanes.
Also, one of the “terms” Rossello is referring to in his letter is that Puerto Rico will not receive a community development loan until it has proven that the government’s cash balance has dipped below $800 million, which has not happened yet.
Congress approved a loan in October to aid Puerto Rico in rebuilding efforts after Hurricanes Irma and Maria destroyed the U.S. territory, which was already dealing with bankruptcy.
The governor was hoping his letter would urge Senate Majority Leader Mitch McConnell, R-Ky., Senate Minority Leader Chuck Schumer, D-N.Y., House Speaker Paul Ryan, R-Wis., and Minority Leader Nancy Pelosi, D-Calif., to intervene.
The community disaster loan is only one of many forms of disaster relief, and one that is usually forgiven. Puerto Rico’s latest recovery plan total includes $49.1 billion of federal disaster aid.
During a Monday meeting between officials from the Treasury Department, as well as other agencies, and the Puerto Rico Financial Oversight and Management Board, Rossello said the Treasury “intimated that the loans will not be forgiven under any circumstance” and they were more focused on repayment than relief for the island’s residents.
The Treasury released a statement that said in the Monday meeting they discussed terms under which the U.S. government would offer community disaster loans to the island, including steps that would protect federal taxpayer investments.
The purpose of community development loans in to provide financial help to specific communities in times of need, while still ensuring the government has the money needed to perform its duties.
