Puerto Rico may receive less federal disaster money than expected, a potential drag on an island that was counting on post-Hurricane rebuilding to help it recover from a years-long recession, according to a report from the commonwealth’s financial oversight board, Bloomberg News reported. The federally appointed board last month released a multi-year fiscal plan to balance Puerto Rico’s budgets, reduce $35 billion of debt and other liabilities and address a broke pension system. It relies on federal disaster aid from Hurricane Maria to help grow the economy. Yet that plan has risks. Puerto Rico may only receive $39 billion from the Federal Emergency Management Agency and U.S. Department of Housing and Urban Development, rather than the anticipated $69 billion, according to a Sept. 17 report by the board and posted late Thursday night on the Municipal Securities Rulemaking Board’s website. “We are already seeing delays in disaster relief funding and have reason to question the duration of the ‘boost’ these funds are bringing to the economy,” according to the report. The release of the board’s risk report comes as it negotiates in bankruptcy proceedings with creditors on how to reduce $17.8 billion of debt backed by Puerto Rico’s central government. The board has reason to doubt the amount and pace of federal aid money. Acting White House Chief of Staff Mick Mulvaney on Thursday said that the administration was correct in thinking that Puerto Rico was corrupt, which he said figured into decisions about disbursing aid.
