After making the rounds in Washington, D.C. over the last week, Gov. Charles Turnbull said the Federal Emergency Management Agency will consider the territory’s request to restructure or forgive outright the approximately $200 million owed the agency for relief following major hurricanes.
Turnbull said he met FEMA Director James Lee Witt on Thursday to discuss the Hurricanes Hugo and Hurricane Marilyn Community Disaster Loans. The storms devastated the islands in 1989 and 1995 respectively.
"I am pleased to report that we have reached a tentative agreement on a process for reviewing our petition," said Turnbull. "While I must emphasize that many difficult legal and technical issues remain, Thursday’s meeting produced a new willingness to work with the territory to address this important issue."
At the end of January, President Bill Clinton increased the share of disaster assistance for damage caused by Hurricane Georges in 1998 and Lenny in 1999. That move took the territory off the hook for more than $2 million in matching funds.
The increased federal share will be applied to the Public Assistance Program for repairing storm-damaged infrastructure and the Individual and Family Grant Program. Funding will also go to the FEMA Hazard Mitigation Grant Program.
The federal government has already agreed to a one-year forbearance on FEMA loan payments, saving the V.I. government nearly $10 million over the past 12 months.
Meanwhile, Turnbull visited a host of Capitol Hill movers and shakers to thank them for support on V.I. issues, including Sen. Frank Murkowski, (R-Alaska). Turnbull said he thanked the politicians for their support on legislation to increase rum tax revenue and an amendment to the Revised Organic Act last fall that facilitated a $300 million bond issue.
