Puerto Rico: Treasury cuts $5B disaster loan to $2B
San Juan, Puerto Rico – Puerto Rico’s governor is demanding action from U.S. Congress after announcing that the Treasury Department has cut a nearly $5 billion disaster relief loan by more than half.
Ricardo Rossello said Tuesday that federal officials reduced the amount to $2 billion without providing an explanation. He warned the move puts the U.S. territory in a “dangerous financial dilemma” and that his administration could be forced to cut some essential services.
Congress had approved the loan in October to help Puerto Rico recover from Hurricane Maria. The Category 4 storm killed dozens of people and caused up to an estimated $94 billion in damage. Some 15 percent of power customers remain in the dark.
A Treasury spokesperson did not immediately return a message for comment.